Trump Signs Genius Act Regulating Stablecoins

On July 18, 2025, Donald Trump signed the “Genius Act,” marking the first cryptocurrency-specific regulation in the United States. This historic legislation provides a formal framework for the issuance and management of payment stablecoins, which are digital tokens designed to maintain a stable value, typically pegged to a fiat currency like the U.S. dollar.

Jesse McWaters, Mastercard's global policy director, hailed the law's passage as a significant milestone, describing it as “a turning point in stablecoin regulation and digital asset adoption.” McWaters emphasized that the GENIUS Act brings much-needed clarity to the stablecoin landscape, promoting institutional adoption and fostering broader integration of digital assets into the financial ecosystem.

Mastercard has been intensively preparing for this regulatory development in recent years. McWaters noted that mass adoption of stablecoins would be possible if they were “integrated into trusted systems.” The new law allows regulated entities, such as banks and companies, that meet reserve, transparency, and compliance requirements to issue dollar-backed stablecoins. This regulatory clarity is expected to boost confidence in the crypto industry by introducing consumer protections and ensuring that national banks can legally create and transact with stablecoins.

The passage of the GENIUS Act has sparked significant activity in the sector. Executives from major financial institutions, including JPMorgan, Citigroup, and Bank of America, have announced plans to enter the stablecoin market. Additionally, tech giants are reportedly working on integrating stablecoins into their platforms, further indicating the growing interest and investment in this space.

The signing ceremony at the White House was attended by prominent industry representatives, including Circle, Coinbase, Gemini, and Tether. Tether CEO Paolo Ardoino stated that the new regulation provides a “clear legal foundation” for the industry, underscoring the importance of this legislation in shaping the future of digital assets.

The GENIUS Act establishes nationwide rules for issuing and managing payment stablecoins, addressing long-standing demands from institutions for regulatory certainty. This clarity is expected to encourage more traditional financial institutions to explore and integrate stablecoins into their services, further legitimizing the role of digital assets in the financial system. The law was passed with bipartisan support, highlighting its significance in the evolving landscape of digital finance.

As the financial landscape continues to evolve, the GENIUS Act serves as a foundational step towards a more integrated and regulated digital asset ecosystem. This regulatory clarity is crucial for fostering trust and confidence among consumers and institutions alike, ultimately driving the growth and adoption of stablecoins. The legislation sets a precedent for how digital assets can be regulated at the federal level, paving the way for increased adoption and innovation in the digital asset space.