Genius Act Recognizes Stablecoins as Legal Assets in U.S.

Coinbase CEO Brian Armstrong has hailed the signing of the Genius Act into law as a pivotal moment in the evolution of the financial system. The legislation, endorsed by U.S. President Donald Trump, establishes a regulatory framework that recognizes stablecoins as legal assets within the U.S. financial system. This move is seen as a significant step towards modernizing the way money is transferred globally.

Armstrong, speaking to CNBC, emphasized the transformative potential of the Genius Act. He highlighted that the law will facilitate quicker and more cost-effective payments, particularly for cross-border transactions, which are often plagued by delays and high costs. This shift is expected to create a more streamlined and accessible financial future for both individuals and businesses.

Following his interview, Armstrong reinforced his message on X, stating, “The financial revolution starts here.” He described the signing of the Genius Act as a monumental event in the crypto industry, underscoring its importance in advancing the next level of financial infrastructure in the U.S.

Despite the progress, Armstrong acknowledged that more work is needed to fully integrate cryptocurrencies into the financial system. He urged lawmakers to pass the Clarity bill, a separate piece of legislation aimed at regulating the broader crypto industry beyond stablecoins. Armstrong noted that President Trump has expressed interest in reviewing the Clarity bill before the end of September, and Coinbase, along with other industry players, is committed to supporting its passage through Congress.

Armstrong believes that the combination of the Genius Act and the Clarity bill will create a comprehensive legal framework for digital assets. He emphasized that this clarity is essential for responsible innovation and the sustainable growth of the crypto economy in the U.S.

With the Genius Act now in effect, the foundation for a modern financial system that leverages stablecoins is being laid. As industry leaders advocate for more thorough regulation, the crypto market is positioning itself as the epicenter of the next financial revolution. The legislation's requirement for stablecoins to be fully backed by reserves is a positive step towards building trust and stability in the crypto market. However, the self-regulation aspect of the act remains a contentious issue, and it will be important for regulators to monitor the situation closely to prevent any potential abuses.