President Donald Trump has demanded Congress send the newly passed GENIUS Act directly to his desk, and he wants it fast. Calling for “no delays, no add-ons,” Trump’s urgency underscores just how pivotal this legislation could be for the stablecoin industry and the broader U.S. crypto market.
Passed in the Senate with bipartisan support (68–30) on June 18, 2025, the GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins, marks the first comprehensive attempt by the U.S. federal government to regulate stablecoins. The bill is now headed to the House of Representatives for final approval.
What’s in the GENIUS Act?
The GENIUS Act establishes a legal foundation for stablecoin issuers and is intended to bring regulatory clarity to one of crypto’s fastest-growing sectors. Key provisions include:
1:1 reserve backing: All stablecoins must be backed by equivalent liquid reserves.
Monthly disclosures and third-party audits: Especially for issuers exceeding $10 billion in market cap.
Clear regulatory oversight: Federal and state agencies will jointly supervise stablecoin issuers.
AML & KYC mandates: Strict anti-money laundering and identity verification measures will apply.
Bankruptcy prioritization: Stablecoin holders are considered priority creditors in the event of issuer collapse.
Senator Bill Hagerty, a lead sponsor of the bill, stated it “strikes the right balance between innovation and consumer protection.” Treasury officials estimate that this move could unlock $2–3 trillion in stablecoin-based transactions by 2030.
Trump’s Pro-Crypto Agenda and the Ethics Question
Trump’s involvement in fast-tracking the GENIUS Act has ignited both praise and controversy. The President has publicly supported crypto adoption, and sources indicate he has personal stakes in crypto-related ventures, including USD1 stablecoin and the Trump meme coin ($TRUMP), both of which could benefit from a favorable regulatory landscape.
What’s raising eyebrows, however, is a loophole in the bill: While it prohibits members of Congress and their families from holding equity or profiting from stablecoin companies, it does not apply to the President or Vice President.
Critics like Senator Elizabeth Warren argue that this undermines the credibility of the bill. “The American public deserves regulation without backroom self-dealing,” she said during floor debates.
Industry Response: Hopeful Yet Cautious
Leading crypto figures, including Coinbase CEO Brian Armstrong and Circle co-founder Jeremy Allaire, have expressed support for the bill. Armstrong tweeted that “clear guardrails will fuel adoption and bring institutional trust.”
Still, some analysts say the GENIUS Act may favor centralized stablecoin issuers while squeezing out decentralized protocols. “This isn’t a win for DeFi just yet,” said Maya Crenshaw, analyst at Cryptobrief.
What Happens Next?
The GENIUS Act is now in the hands of the House of Representatives, where it’s expected to pass with minor debate, especially given Trump’s aggressive push to finalize it before Congress breaks for August recess.
If the bill becomes law, it would:
Establish the U.S. as a regulatory leader in stablecoin policy.
Encourage institutional adoption and bring crypto infrastructure into the banking sector.
Create friction for unregulated stablecoins and decentralized issuers.
Key Price and Industry Impacts
| Asset/Class | Potential Impact If Passed |
|---|---|
| USDC, USD1 | Institutional trust and growth |
| $TRUMP Memecoin | Speculative hype and price jump |
| DeFi stablecoins | Regulatory pressure, delist risks |
| Crypto markets | Short-term volatility, long-term bullish |
For Traders: Watch the Political Whales
For traders, the GENIUS Act could be a double-edged sword. On one hand, it may fuel bullish sentiment for centralized stablecoins like USDC and potentially spike prices for politically aligned tokens like $TRUMP. On the other, DeFi stablecoins and decentralized platforms may face regulatory headwinds, leading to de-risking or delistings.
Volatility will likely rise around each legislative milestone, so traders should keep a close eye on House debates, amendment attempts, and any future executive orders tied to the crypto agenda.
Conclusion: A Pivotal Shift in Crypto Legislation
The GENIUS Act isn’t just another crypto bill, it’s a defining moment for how the U.S. embraces or controls digital finance. Trump’s push to fast-track the legislation underscores his administration’s intent to lead the next wave of Web3 policy.
While the bill brings needed regulatory clarity, the carve-outs for the presidency and potential conflicts of interest must not be ignored. The coming weeks will determine whether this law sets a strong foundation, a fragile precedent, for crypto’s future in America.
FAQs
What is the GENIUS Act?
It’s the first U.S. federal law to fully regulate stablecoins, requiring reserves, audits, and AML compliance.
Why is Trump so eager to pass it?
He supports crypto innovation and reportedly holds investments in related assets that could benefit from regulatory clarity.
Does the bill have bipartisan support?
Yes. It passed the Senate 68–30, with both Republicans and Democrats backing stablecoin regulation.
Glossary of Key Terms
Stablecoin
A cryptocurrency pegged to the value of a stable asset, like the U.S. dollar.
1:1 Backing
Means each stablecoin is fully backed by one U.S. dollar or its equivalent in liquid assets.
AML/KYC
Anti-money laundering and Know Your Customer rules used to prevent illicit activity in finance.
DeFi
Decentralized Finance, crypto financial services without intermediaries like banks.
Conflict of Interest
A situation where personal gain could influence public duty or policy decisions.
Sources and References
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