17.07.2025 23:10
The United States House of Representatives overwhelmingly approved the GENIUS Act, a landmark piece of legislation representing the first-ever federal cryptocurrency regulation in the country. This bipartisan victory, achieved with 306 votes in favor, sends the bill to President Trump's desk, where it's anticipated to receive his immediate signature. The act establishes a comprehensive framework for stablecoin oversight, marking a significant turning point for the American crypto landscape.
Central to the GENIUS Act is its stringent regulation of stablecoins. Issuers will be obligated to maintain 100% reserves, undergo rigorous audits on a regular basis, and register with either federal or state regulatory bodies. Further, the legislation explicitly prohibits the issuance of unbacked, algorithmic stablecoins. A novel aspect of the bill is its establishment of a dual-licensing system, empowering both federal and state authorities to oversee and approve stablecoin issuers. The Senate's prior approval this month paved the way for today's decisive House vote.
President Trump's administration played a crucial role in facilitating this legislative success amidst recent political tensions. The GENIUS Act’s passage closely followed the advancement of the CLARITY Act through the House. With the President expected to sign the bill imminently, it is slated to come into effect in 2026, prompting regulatory agencies such as the Federal Reserve and the Office of the Comptroller of the Currency to begin formulating implementation rules.
This new legislation provides a crucial legal foundation for the growth of US-regulated stablecoins, promoting safety and transparency within the sector. However, concerns have been voiced by critics who fear it may disadvantage smaller issuers, potentially strengthening the dominance of large players like Circle and PayPal. Furthermore, privacy advocates have expressed apprehension regarding potential increases in surveillance. Despite these reservations, the GENIUS Act establishes the fundamental regulatory framework for dollar-backed stablecoins, a cornerstone for wider cryptocurrency adoption in the United States.
The immediate future holds the President's expected signature within hours, followed by a period leading up to 2026 when regulatory agencies will finalize and release their implementing regulations. Stablecoin issuers must proactively begin preparing to meet the new compliance requirements. While this article strives for unbiased reporting based on internet sources, readers are encouraged to conduct their own independent verification of information presented.
