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U.S. President Donald Trump on Friday signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, the country’s first full set of rules for dollar-pegged tokens. The 14:30 ceremony in Washington capped weeks of debate; the law will start in 18 months unless regulators act sooner, as outlined GateSquare.
The statute forces issuers to keep a strict 1:1 reserve of cash or short-term Treasuries and to release monthly audit reports. It also bans paying interest on U.S. stablecoin deposits, a move that could up-end business models, reported Reuters.
Lawmakers at the signing praised the bill as a boost for fintech leadership, while critics said it hands more power to big banks. Trump called the measure an “exciting new frontier for crypto,” added CBS News.
Stablecoins are digital tokens tied to a real currency and used widely for trading and payments. Until now they were overseen mainly by state regulators, leaving firms and investors facing legal grey zones.
Congress advanced the act after months of hearings. The Senate passed it 68-30 on 17 June; the House approved it on 17 July. Issuers with more than $10 billion outstanding must obtain a federal bank or trust charter, while smaller players may operate under state licences.
Analysts say clear rules could channel tens of billions into Treasuries that back the coins. Research group ChainDesk projects the stablecoin market could reach $2 trillion by 2028 if compliance costs stay moderate. Treasury and the Federal Reserve are expected to release detailed guidelines later this year.
