US Passes GENIUS Act Establishing Stablecoin Framework

In July 2025, the United States took a monumental step in the realm of cryptocurrency regulation with the passage of the Guiding and Establishing National Innovation for US Stablecoins Act, commonly referred to as the GENIUS Act. This legislative milestone was celebrated by Ripple CEO Brad Garlinghouse as a historic victory for the U.S. in the global crypto regulatory landscape. Garlinghouse described the GENIUS Act as transformational legislation, drawing parallels to the landmark Dodd-Frank Act of 2010, which overhauled financial regulations in the wake of the 2008 financial crisis.

The GENIUS Act aims to establish a comprehensive regulatory framework for stablecoins, a type of cryptocurrency designed to maintain a stable value, often pegged to a reserve asset like the U.S. dollar. The passage of this act is seen as a significant step towards legitimizing stablecoins and providing clarity for their use in the financial system. The legislation sets the stage for the U.S. to become a global leader in crypto innovation, fostering an environment where stablecoins can thrive and be integrated into mainstream financial services.

Garlinghouse's praise for the GENIUS Act underscores the broader implications of this legislation. By providing a clear regulatory path for stablecoins, the act is expected to encourage further investment and development in the crypto space. This, in turn, could position the U.S. as a hub for crypto innovation, attracting both domestic and international players to the market.

The House of Representatives' vote in favor of the GENIUS Act marks a pivotal moment in the ongoing debate over cryptocurrency regulation. The act not only addresses the regulatory concerns surrounding stablecoins but also lays the groundwork for a potential central bank digital currency (CBDC). This dual focus is intended to balance the need for innovation with the necessity of maintaining financial stability and consumer protection.

Ripple’s Chief Legal Officer, Stuart Alderoty, advocated for the creation of clear rules in digital assets. He sees the stablecoin legislation as a massive win for Americans, as it is expected to provide more clarity on the regulations. Alderoty stated, “There’s movement on workable, clear frameworks for crypto and stablecoins that will both foster innovation and protect consumers. This is exactly what the American people have been asking for.”

The passage of the GENIUS Act also signals a shift in the regulatory approach towards cryptocurrencies. Rather than viewing them as a threat, the legislation recognizes the potential benefits of stablecoins and seeks to integrate them into the existing financial infrastructure. This proactive stance is likely to foster a more collaborative relationship between regulators and the crypto industry, paving the way for future advancements.

Crypto billionaire and founder of TRON, Justin Sun, positively acknowledged the GENIUS Act from the beginning. He emphasized that the stablecoin legislation serves as a blueprint for responsible innovation in the digital assets space. He supported the move, signifying it as a turning point for the U.S. Paul Grewal, the Legal Officer at Coinbase, shared similar views on stablecoin legislation and other new bills in the U.S. Grewal and Sun both encouraged the bill for the U.S. to become dominant in the global crypto space. Grewal stated that this bill can pave the way to maintain U.S. dollar dominance, as $190 billion in dollar-backed stablecoins are already in circulation globally. He showed his gratitude for the U.S. Constitution and appreciated its innovative ideas on digital assets.

In summary, the GENIUS Act represents a significant milestone in the evolution of U.S. crypto regulation. By establishing a clear framework for stablecoins and laying the groundwork for a CBDC, the act positions the U.S. as a leader in crypto innovation. The passage of this legislation is a testament to the growing recognition of the potential benefits of cryptocurrencies and the need for a balanced regulatory approach that fosters innovation while ensuring financial stability.