The United States Congress has passed its first major national law on cryptocurrency, marking a historic shift for the fast-growing sector. The new bill, called the Genius Act, is the product of years of pressure from the crypto industry on lawmakers.
The Act focuses on stablecoins—a type of digital currency pegged to traditional assets like the US dollar. These coins are seen as more stable compared to volatile cryptocurrencies like Bitcoin.
Trump is expected to sign the bill into law on Friday. The House of Representatives passed it on Thursday, following Senate approval last month.
For the crypto industry, which once sat at the fringe of mainstream finance, this is a turning point. Millions of dollars were poured into last year’s elections, with support thrown behind candidates such as Trump.
Once a vocal critic of digital currency, Trump now backs the industry strongly. He has even done business with firms like World Liberty Financial.
A Legal Framework for a New Kind of Money
Supporters of the bill say it brings structure to a market that has outpaced regulations. “This gives America a clear roadmap for crypto innovation,” one lawmaker said.
The Genius Act sets strict requirements: stablecoins must be backed one-for-one by US dollars or other low-risk assets. This rule is meant to prevent another collapse like TerraUSD in 2022, which wiped billions off the market.
These types of coins are already popular among traders, helping them shift funds between different crypto assets more smoothly.
But critics argue the bill opens the door to big tech companies operating like banks—without the same level of scrutiny. They fear consumers could be left exposed if one of these companies goes bust.
A coalition of advocacy groups warned in a letter to Congress: “This bill will allow the proliferation of assets that consumers will wrongly perceive as safe.”
Still, the bill found support on both sides of the aisle. About half of Democrats voted in favour, alongside a majority of Republicans.
Trump’s Crypto Bet and What Comes Next
This new law is just one of three major crypto bills Trump supports. The other two have passed the House but still face hurdles in the Senate, where Republicans have a slim majority.
One bill aims to stop the Federal Reserve from launching its own digital currency. The other seeks to regulate the broader crypto market.
Analysts say the road ahead for these bills won’t be easy. Terry Haines of Pangaea Policy wrote: “This is the end of crypto’s wins for quite a while—and the only one.”
He added: “When the easy part, stablecoin, takes 4 to 5 years and barely survives industry scandals, it’s not much to crow about.”
Meanwhile, Trump is reportedly working on a draft executive order. If signed, it would let retirement accounts invest in assets like gold, private equity, and cryptocurrencies.
As Bitcoin surged past $120,000 this week, some believe this may be the beginning of a new chapter. Others remain cautious.
Rate, Like 👍, Comment💬, share this article, Follow us on our social media handles, and Submit your own story to get featured and earn rewards!
