Trump Administration Advances Crypto Legislation With GENIUS Act Passage

David Sacks, the White House AI and crypto czar, celebrated the passage of a significant legislative package, dubbed “One Big Beautiful Bill,” which he described as achieving “historic victories” in areas such as border security, tax cuts, welfare reform, and deregulation. Sacks highlighted that the Trump administration's next major priority is focused on crypto legislation, with the GENIUS Act for stablecoins and the CLARITY Act for market structure being key components.

In a July 4th tweet, Sacks congratulated President Trump and legislative leaders for their achievements and announced that the GENIUS Act is now heading to the President’s desk. He also mentioned that the CLARITY Act is on its way to the Senate, framing these upcoming crypto bills as the next major victories for the Trump administration. This positioning suggests that the administration views the crypto legislation as part of a successful and ongoing governing agenda, with more victories anticipated.

The GENIUS Act, which was passed by the US Senate on June 17 with a vote of 68 in favor and 30 against, establishes the first federal regulatory framework for dollar-pegged stablecoins. This legislation empowers the US Treasury Department with oversight functions, allowing banks, fintech firms, and retailers to operate in a regulated stablecoin environment. The act aims to promote innovation in the stablecoin sector while ensuring financial stability by explicitly barring technology firms from issuing stablecoins, thereby protecting the financial system from potential disruptions.

The CLARITY Act, introduced to the House of Representatives on May 29, 2025, and advanced by House committees on June 10, 2025, is currently awaiting consideration by the full House. Analysts and economic stakeholders are optimistic that it will pass through legislation similar to the GENIUS Act. The CLARITY Act aims to provide regulatory clarity for cryptocurrencies, furthering the administration's goal of fostering a more crypto-friendly environment.

The recent developments in crypto legislation highlight the Trump administration's progress in pursuing its goal of making the U.S. the crypto capital of the world. The GENIUS Act and other related bills are expected to promote stablecoin adoption and enhance the U.S. digital assets ecosystem, significantly impacting the broader cryptocurrency industry. The act is also seen as a way to ensure that stablecoins are issued in a manner consistent with U.S. financial regulations, thereby protecting consumers and maintaining the integrity of the financial system.

The GENIUS Act is expected to drive private sector demand for U.S. Treasury bonds, as a thriving stablecoin ecosystem will require a stable and reliable backing. This could lead to increased investment in U.S. Treasury bonds, further strengthening the U.S. economy. The act has received support from both sides of the aisle, with Senator Kirsten Gillibrand, one of the bill's sponsors, praising its potential to drive innovation in the stablecoin sector. The administration's efforts to promote a pro-crypto agenda are seen as a way to position the U.S. as a leader in the global crypto market, attracting more investment and innovation in the sector.