Trump Signs GENIUS Act; Market Euphoric, Critics Skeptical
U.S. President Donald Trump Friday July 18, 2025 signed the bipartisan GENIUS Act, aimed at creating a regulatory regime for dollar-pegged cryptocurrencies known as stablecoins
[The GENIUS Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins, the White House said while sharing the above image on social media platform X.]
Washington: U.S. President Donald Trump Friday July 18, 2025 signed the bipartisan GENIUS Act, aimed at creating a regulatory regime for dollar-pegged cryptocurrencies known as stablecoins.
The law, earlier passed in the House of Representatives and then Senate, introduces a two-tier framework involving the Federal Reserve and OCC, mandates full asset backing, and applies AML rules to digital asset issuers.
Stablecoin Market Cap
The new act has sent the stablecoin market in high esteem.
A stablecoin is a type of cryptocurrency where the value of the digital asset is supposed to be pegged to a reference asset which in this case is U.S. dollars.
The stablecoin market valuation, as per the data from defillama.com, is $260.571 billion. The sector expanded by 1.37% over the past seven days, adding $3.533 billion when the GENIUS Act was introduced and later passed by the House and Senate before becoming a law.
"Greatest Revolution in Financial Technology"
While announcing that the GENIUS Act has been signed into a law, the White House called it the Greatest Revolution in Financial Technology.
"The GENIUS Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins. This could be perhaps the GREATEST revolution in financial technology since the birth of the internet itself", the White House wrote on X.
President Trump after signing the Genius Act said it is the first step in making the "crypto capital of the world".
“I pledged that we would bring back American liberty and leadership and make the U.S. the crypto capital of the world... The Genius Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins", he said.
Treasury Secretary Scott Bessent in his response called the Genius Act 2025 a historic piece of legislation that, he said, will pave the way for the U.S. to lead the global digital currency revolution.
"Greenlight Corruption"
Republican member Stephen F. Lynch, however, is not convinced. He said the Genius Act will devalue the U.S. dollar.
"The so-called “Genius Act” allows Trump to sell access to foreign governments, allows big tech to issue private digital currencies, and devalues the U.S. dollar", he said.
Republican Congressman was more brutal in his criticism of the Genius Act.
"The GENIUS Act doesn’t just greenlight corruption — it invites a crisis", he warned.
Trump Stablecoin
Interestingly, U.S. President Trump is directly involved in stablecoin trade via USD1 which is a US dollar-backed stablecoin launched in March 2025 by World Liberty Financial, a crypto project linked to him.
Trump and his wife Melania also own cryptocurrencies. Melania introduced her own crypto coin, $MELANIA, hours after Donald Trump announced the launch of $Trump or TrumpCoin a day before taking oath as 47th President of the United States of America.
In a post on his Truth Social platform on March 3, 2025, Trump said that his January executive order on digital assets would establish a reserve consisting of XRP (Ripple), Solana (SOL), and Cardano (ADA), apart from Bitcoin (BTC), and Ethereum (ETH).
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