Trump Brokers Deal to Advance GENIUS Act for Stablecoin Regulation

US President Donald Trump confirmed Tuesday night that congressional leaders have struck an agreement to advance the landmark GENIUS Act, a major legislative push aimed at regulating dollar-pegged stablecoins. The breakthrough came after an Oval Office meeting where Trump met with 11 of the 12 key House Republicans needed to flip the outcome of a failed procedural vote earlier in the day. Trump posted on Truth Social, “I am in the Oval Office with 11 of the 12 Congressmen/women necessary to pass the GENIUS Act and, after a short discussion, they have all agreed to vote tomorrow morning in favor of the Rule.”

House Speaker Mike Johnson also joined the meeting by phone and reportedly voiced strong support for expediting the bill’s progress. The turnaround follows a significant setback for House Republicans on Tuesday afternoon, when they failed to pass a key procedural vote, blocking a package of bills that included the GENIUS Act, the Clarity Act, and defense appropriations. The 196-222 vote exposed deep divisions within the GOP’s Freedom Caucus over bundling multiple measures.

The GENIUS Act, already passed by the Senate in June with bipartisan backing (68-30), proposes the first comprehensive federal framework for dollar-pegged stablecoins. The bill would empower the Department of the Treasury to oversee the sector and establish regulated pathways for private companies to issue fully backed digital dollars. Treasury Secretary Scott Bessent has projected that the U.S. stablecoin market could expand from its current $238 billion to more than $2 trillion within a few years if the GENIUS Act becomes law. The bill’s passage is widely seen as crucial to giving financial institutions, fintechs, and crypto firms regulatory certainty at a time when competition with other countries is intensifying.

Trump has repeatedly described stablecoin policy as key to “maintaining American technological supremacy.” Industry stakeholders have lobbied aggressively for clearer rules, calling stablecoin clarity the crypto sector’s most achievable near-term goal in Washington. “I want to thank the Congressmen/women for their quick and positive response,” Trump said, expressing full confidence ahead of Thursday’s procedural vote that could greenlight final passage.

In a significant development for the cryptocurrency industry, Donald Trump has successfully brokered a deal with Congress to advance the GENIUS Act, a bill aimed at regulating stablecoins. This legislative push comes as part of a broader effort to establish a comprehensive framework for digital currencies, addressing concerns over financial stability and consumer protection. The GENIUS Act, which stands for "Government Enforcement of New Innovations in Unregulated Stablecoins," seeks to provide clear guidelines for the issuance and management of stablecoins. These digital assets, which are pegged to the value of traditional currencies like the US dollar, have gained popularity due to their stability and utility in financial transactions. However, their rapid growth has also raised regulatory concerns, prompting lawmakers to take action.

The bill's passage through Congress marks a pivotal moment in the ongoing debate over cryptocurrency regulation. By establishing a clear set of rules, the GENIUS Act aims to foster innovation while mitigating the risks associated with unregulated digital assets. This approach is seen as a balanced solution that addresses the concerns of both industry stakeholders and regulatory bodies. The deal brokered by Trump underscores the bipartisan support for cryptocurrency regulation, as lawmakers from both major political parties have recognized the need for a cohesive regulatory framework. The GENIUS Act is expected to undergo further scrutiny and amendments as it progresses through the legislative process, but its advancement represents a significant step forward in the effort to regulate stablecoins.

The implications of the GENIUS Act extend beyond the cryptocurrency industry, as it could set a precedent for the regulation of other digital assets and financial technologies. By providing a clear regulatory framework, the bill aims to promote innovation while ensuring the stability and security of the financial system. This approach is likely to be closely watched by other countries, which are also grappling with the challenges posed by the rapid growth of digital currencies. The advancement of the GENIUS Act comes at a time when the cryptocurrency industry is facing increased scrutiny from regulators around the world. In recent months, there have been calls for greater oversight of digital assets, particularly in light of their potential impact on financial stability. The GENIUS Act represents a proactive response to these concerns, demonstrating the US's commitment to fostering innovation while protecting consumers and the financial system.