Trump Advocates for Crystal-Clear Cryptocurrency Regulations amid Senate's Upcoming Vote on the GENIUS Act
In July 2025, the United States took a significant step forward in regulating the stablecoin sector with the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act). Signed into law by then-President Donald Trump, this federal law established a regulatory framework for payment stablecoins, providing much-needed clarity in a rapidly evolving market.
The GENIUS Act defines payment stablecoins as digital assets intended for payments or settlements, backed by fixed monetary value with an expectation of stable value maintenance. The law sets licensing and regulatory requirements for domestic stablecoin issuers, including custody and safekeeping standards, and also addresses foreign issuers participating in the U.S. payment stablecoin market. Notably, the Act does not cover national currencies, bank deposits, or securities and establishes that payment stablecoins are not federally insured.
The GENIUS Act was part of a broader set of crypto-related bills passed during "Crypto Week" in July 2025. These included the CLARITY Act, focusing on digital asset market infrastructure, and the CBDC Anti-Surveillance State Act, which aimed to restrict the Federal Reserve's authority on central bank digital currencies.
President Trump framed the bill as a major step toward embracing cryptocurrency as an "exciting new frontier" and humorously noted that the bill was named after him. However, concerns about potential conflicts of interest involving former President Trump have not been substantiated in the cited sources.
During his term, President Trump also collaborated with Congress to advance the development of dollar-backed stablecoins and appointed Paul Atkins as a pro-freedom, pro-innovation SEC chair. The SEC gave approval for a $2.3B Bitcoin-linked stock deal by Trump Media, and President Trump reaffirmed his commitment to positioning the U.S. as the world's "crypto capital" through more crypto-friendly policies.
As the GENIUS Act moves through the political and regulatory process, concerns about the potential impact of close ties between Trump and new digital asset ventures on fair competition in the crypto industry continue to grow. Scrutiny over these connections is expected to intensify as Trump continues to shape the conversation on crypto regulations.
The Senate is scheduled to have a final vote on the GENIUS Act on Tuesday, June 17. If approved, the stablecoin-focused bill will move on to the House of Representatives for consideration, marking another significant step in the evolution of cryptocurrency regulation in the United States.
- The GENIUS Act, signed into law by President Trump, provides a regulatory framework for investing in payment stablecoins, particularly in the finance sector, because it sets licensing and regulatory requirements for domestic stablecoin issuers.
- The GENIUS Act also covers general-news, as it is part of a broader set of crypto-related bills passed during "Crypto Week" in July 2025, including the CLARITY Act and the CBDC Anti-Surveillance State Act, which delve into aspects of digital asset market infrastructure and central bank digital currencies respectively.
- The political landscape surrounding the GENIUS Act remains complex, as concerns about potential conflicts of interest involving former President Trump continue to grow, specifically regarding his close ties with new digital asset ventures and their impact on fair competition in the crypto industry.
