Trump Signs Landmark GENIUS Act, Paving Way for US Dollar‑Stablecoins

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Business

---

Image Credit: Annabelle Gordon/ REUTERS

In a move set to transform the digital finance landscape, U.S. President Donald Trump has signed the GENIUS Act a new law creating a regulatory framework for U.S. dollar‑backed stablecoins.

The legislation, formally titled Guiding and Establishing National Innovation for US Stablecoins, passed the House of Representatives by a vote of 308 to 122 after clearing the Senate earlier this month.

“The GENIUS Act they named it after me,” Trump declared at the White House signing ceremony, flanked by senior lawmakers, Treasury officials, and crypto industry leaders. “It’s good for the dollar, and it’s good for the country. That’s why I backed you at an early stage and I also did it for the votes,” he added, drawing laughter from the audience.

Stablecoins, digital currencies pegged 1:1 to the U.S. dollar and backed by liquid assets, have long been hailed as a bridge between traditional finance and blockchain technology.

The new regulatory framework is designed to give stablecoins mainstream legitimacy, opening the door for banks, retailers, and consumers to use them confidently in everyday transactions.

The law is already being celebrated as a historic win for the crypto sector, which invested over $245 million in pro‑crypto candidates including Trump during last year’s election cycle.

Treasury Secretary Scott Bessent praised the move, saying: “This groundbreaking technology will buttress the dollar’s status as the global reserve currency, expand access to the dollar economy for billions, and lead to a surge in demand for U.S. Treasuries, which back stablecoins.”

According to CoinGecko, the stablecoin market currently exceeds $260 billion in value. Analysts at Standard Chartered forecast that, under this new regulatory regime, the market could skyrocket to $2 trillion by 2028. Some watchdog groups argue the legislation lacks adequate safeguards.

“By failing to close known loopholes and protect America’s digital dollar infrastructure, Congress has risked making the U.S. financial system a global haven for criminals and adversarial regimes,” said Scott Greytak, deputy executive director at Transparency International U.S.

Concerns include the absence of stricter anti‑money laundering measures and restrictions on foreign stablecoin issuers. The GENIUS Act is the latest in a series of pro‑crypto moves by the Trump administration.

In March 2025, Trump signed an executive order to establish a strategic Bitcoin reserve. Earlier this year, he launched a meme coin called $TRUMP and maintains ownership in World Liberty Financial, a private crypto firm.

For supporters, the GENIUS Act signals a new era in U.S. monetary policy, with the potential to cement the dollar’s dominance in the digital age. For critics, it’s a bold gamble with too many unanswered questions.

Either way, one thing is clear: the United States has officially opened the door for dollar‑backed stablecoins to enter the financial mainstream.