Trump signs stablecoin law to help crypto grow in the U.S.

Post by : Monika

Photo: Reuters

On July 18, 2025, former U.S. President Donald Trump signed a new law called the GENIUS Act. This law creates clear rules for stablecoins, which are types of cryptocurrencies tied to the value of a real U.S. dollar.

The law was passed by Congress with strong support from both Republicans and Democrats. It aims to make stablecoins safer, more transparent, and easier to use for regular payments and money transfers.

What Are Stablecoins?
Stablecoins are digital tokens designed to keep their value the same as the U.S. dollar, at a 1-to-1 rate. People use them in the crypto world to move money quickly—like trading for bitcoin or ether. But now, lawmakers hope these coins can be used widely by banks, shops, or even in everyday payments.

Why the GENIUS Act Was Needed
Until now, there were no official rules for stablecoins. This led to confusion and risk. Users didn’t always know if their coins were backed by real dollars. Some companies might mislead people about how much money was actually supporting the coins.

• Congress responded by passing this bill, and Trump signed it into law. Now stablecoin issuers must follow important rules:
• Full backing by safe assets – Each coin must be covered by money in U.S. dollars or things like short-term U.S. Treasury bills.
• Regular reports – Issuers must publish monthly updates on what assets back their coins.
• Strong safeguards – They cannot claim their coins are like U.S. government money or federally insured.
• Legal powers – Issuers must be able to freeze or destroy coins, if legally needed, to prevent misuse.
• These rules aim to protect users and make stablecoins more trustworthy.

What Trump Said
At the signing ceremony, Trump praised the new law, calling it a milestone for both cryptocurrency fans and the broader country. He said it could help make the U.S. the “crypto capital of the world.” Trump shared that his own campaign and supporters in the crypto industry had been pushing for clear rules. He said the law would strengthen the dollar’s role and bring innovation back to America.

Why Crypto Companies Like It
People in the stablecoin industry have been asking for this kind of clarity for years. Without rules, many banks, stores, and businesses were nervous about using crypto. Companies like Circle and Coinbase in Washington worked hard to support the bill. They hope that with official rules, stablecoins will become part of everyday life.

The law may also lead to more demand for U.S. Treasury bills, since those are needed to back stablecoins. That could help strengthen the U.S. dollar and boost government financing.

How This Could Change Crypto
Before the GENIUS Act, crypto was seen as easy money but risky. Now, the law brings structure and transparency. If followed well, it could open the way for more people to use crypto safely – paying bills, doing business, or sending money to family.

• However, some critics are worried:
• Money laundering – They say the law doesn’t do enough to stop criminals from using stablecoins to move illegal money.
• Too much power to big tech – Some fear tech giants could issue stablecoins and gain too much control.
• Foreign influence – There’s concern about stablecoins from other countries causing trouble in the U.S.
• Congress will monitor these issues as the law is put into practice.

What French Hill Said
Representative French Hill, who led the House debate, said this was a “turning point.” He said stablecoins can move money faster and cheaper than traditional banking systems. Hill believes the GENIUS Act helps bring them into everyday finance safely.

What’s Next?
After signing, federal agencies now have six months to make detailed rules. These will guide how stablecoins must operate. Issuers will need to follow reserve, audit, and infrastructure safeguards once regulations are final.

• Meanwhile, two other crypto-related bills also passed the House:
• One defines whether a token is a security (like a stock) or a commodity (like gold).
• Another bans a U.S. central bank digital currency (CBDC), saying it could threaten privacy.

These bills now go to the Senate for review.

Why It Matters Globally
The GENIUS Act is the first federal rule for stablecoins in the U.S. Other countries are watching closely. A U.S. framework may encourage global crypto growth, but it will also pressure other nations to set their own rules.

According to Standard Chartered Bank, the stablecoin market is worth around $260 billion today. If stablecoins grow safely, they could reach $2 trillion by 2028 under the new law.

Some Concerns Remain

• Even with the new law, there are still questions:
• Who watches the watchers? Strong oversight is needed to ensure rules are followed.
• Are reserves enough? It's important to confirm reserves are real and safe, not hidden or risky assets.
• Technological hurdles – Banks and businesses must update their systems to work with crypto safely.
• In short, while the law is a big step, strong rule enforcement will be key to its success.

What This Means for You

• Consumers may soon use stablecoins to pay bills or buy things online instantly.
• Businesses could accept crypto payments without worrying about sudden value changes.
• Investors may start to see stablecoins as reliable tools rather than trading tokens.
• The new law helps make crypto a part of daily life—not just a way for quick money trades.

The signing of the GENIUS Act marks a historic moment for cryptocurrency. For the first time, stablecoins will operate under clear rules in the U.S. The goal is to protect users, support innovation, and strengthen the dollar’s role.

But success depends on how the law is put into practice. Agencies must write strong rules, companies must follow them, and lawmakers must watch closely.

If all goes well, stablecoins could become a familiar and safe tool—one as common as credit cards or cash.

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