Congress endorses digital currency bill, forwarding it to the President for approval
### US House of Representatives Passes Landmark Cryptocurrency Regulation Bill
The U.S. House of Representatives has passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), a bill aimed at creating a regulatory framework for dollar-pegged cryptocurrency tokens known as stablecoins. The bill, which received bipartisan support, is now awaiting President Donald Trump's signature to become law.
The GENIUS Act marks the first comprehensive cryptocurrency regulation to clear both congressional chambers, a significant milestone given Congress's sluggish response to digital assets in prior years. The Senate voted 68–30 in June 2025, and the House followed with a 308–122 vote on July 17, 2025. With the White House actively urging passage before the August recess, the bill is expected to be signed imminently, possibly as soon as July 18, 2025.
The bill establishes a joint federal-state regulatory regime for payment stablecoin issuers, aiming to close the existing gap where stablecoins have operated with little direct federal oversight. It covers digital assets backed by low-risk reserves (cash, Treasuries) and designed to maintain a fixed value relative to a national currency, such as the US dollar.
Issuers will have until the effective date to comply, with bank regulatory agencies, state regulators, and the Secretary of the Treasury required to issue rules and reports in the interim. The bill prioritizes consumer protection and the US dollar’s role as the world’s reserve currency, while encouraging responsible innovation in payments technology.
The passage of the GENIUS Act is expected to catalyse broader institutional participation, enhance consumer protections, and reinforce the dollar’s dominance in digital payments. It could also set global precedents, as the pending CLARITY Act on crypto market structure moves through the Senate.
While the bill enjoyed broad bipartisan support, disagreements remain, particularly with proponents of the House’s earlier STABLE Act, who sought additional provisions. However, the unified passage of GENIUS reflects a consensus on the need for stablecoin regulation, even as details on enforcement and rulemaking remain to be finalized.
If signed into law, the bill would require stablecoin tokens to be backed by liquid assets such as US dollars and short-term Treasury bills. Issuers would also be required to publicly disclose the composition of their reserves on a monthly basis. Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a one-to-one dollar peg, are commonly used by crypto traders to move funds between tokens.
The crypto sector spent over $119 million backing pro-crypto congressional candidates in last year's elections. The rapid growth of stablecoins in recent years has made them a topic of interest for regulators. Despite this, the House of Representatives passed a stablecoin bill last year, but the Senate did not take it up. President Trump, who is part-owner of a crypto company called World Liberty Financial, has sought to overhaul US cryptocurrency policies. In January, he launched a meme coin called $TRUMP. However, the White House has stated that there are no conflicts of interest present for Mr. Trump, and his assets are in a trust managed by his children.
- The recent passing of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) in the U.S. House of Representatives could set global precedents for cryptocurrency regulation, particularly in the realm of stablecoins, a type of cryptocurrency that maintains a constant value.
- The GENIUS Act, which received bipartisan support, aims to establish a joint federal-state regulatory regime for payment stablecoin issuers and prioritizes consumer protection and the US dollar’s role as the world’s reserve currency.
- If signed into law, the bill would require stablecoin tokens to be backed by liquid assets such as US dollars and short-term Treasury bills, and issuers would be required to publicly disclose the composition of their reserves on a monthly basis.
- The passage of the GENIUS Act could enhance consumer protections and reinforce the dollar’s dominance in digital payments, while encouraging responsible innovation in payments technology and fintech industries.
- The crypto industry, which spent over $119 million backing pro-crypto congressional candidates in last year's elections, has been a topic of interest for regulators, given the rapid growth of stablecoins in recent years. Despite this, Congress's sluggish response to digital assets in prior years resulted in the House passing a stablecoin bill last year, but the Senate did not take it up.
