US President Donald Trump signed into law a bill establishing a regulatory framework for dollar-pegged cryptocurrencies, commonly known as stablecoins, in a move that could bring the digital assets into wider everyday use for payments and money transfers.
The legislation, called the GENIUS Act, passed the House of Representatives by a vote of 308 to 122, with backing from most Republicans and nearly half of Democratic lawmakers.
It had already been approved by the Senate.
According to Reuters, the bill marks a significant milestone for crypto advocates who have long pushed for clearer regulation to help legitimise an industry often associated with volatility and regulatory uncertainty.
“This signing is a massive validation of your hard work and pioneering spirit,”
said Trump during the signing ceremony, which was attended by government officials, cryptocurrency executives, and lawmakers.
“It’s good for the dollar and it’s good for the country.”
US Treasury Secretary Scott Bessent said the new law would strengthen the dollar’s position as the global reserve currency, expand access to the dollar-based financial system, and increase demand for US Treasuries, which are expected to be a key component of stablecoin reserves.
Stablecoins are designed to retain a constant value, typically pegged 1:1 with the US dollar, and are widely used within the crypto ecosystem to facilitate transactions between tokens.
Industry participants hope the assets will become more mainstream as a fast and efficient means of payment.
Under the new law, stablecoins must be backed by liquid assets such as US dollars and short-term Treasury bills, with issuers required to disclose the composition of their reserves on a monthly basis.
Proponents argue that these requirements will improve transparency and trust, potentially encouraging broader adoption by banks, merchants, and consumers.
Crypto data provider CoinGecko estimates the stablecoin market is currently worth over US$260 billion.
Analysts at Standard Chartered have projected that figure could rise to US$2 trillion by 2028 under the new regulatory regime.
The bill’s passage follows an extensive lobbying campaign by the crypto industry, which donated more than US$245 million to political candidates in the 2024 elections, including substantial backing for Trump, according to Federal Election Commission data.
Trump, who has launched his own digital token and partly owns crypto firm World Liberty Financial, acknowledged the industry’s support, saying,
“I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that’s what we’ve done.”
However, critics have raised concerns over the legislation’s scope.
Some lawmakers and policy groups argued that the bill should have barred large technology companies from issuing their own stablecoins, introduced stricter anti-money laundering measures, and placed greater restrictions on foreign issuers.
“By failing to close known loopholes and protect America’s digital dollar infrastructure, Congress has risked making the US financial system a global haven for criminals and adversarial regimes to exploit,”
said Scott Greytak, Deputy Executive Director of Transparency International US.
The law may also drive increased demand for US Treasury bills, as stablecoin issuers will need to hold significant reserves of government debt to comply with the new requirements.
Meanwhile, major US banks are reportedly considering a cautious entry into the cryptocurrency space, exploring pilot programmes and partnerships, as regulators provide clearer guidance.
In March, Trump signed an executive order calling for the creation of a strategic bitcoin reserve.
Earlier this year, he also launched a meme coin known as $TRUMP.
Featured image credit: Edited by Fintech News America, based on image by sweet_tomato via Freepik
