Trump Urges House to Pass GENIUS Act for US Stablecoin Leadership

President Donald Trump has urged the House of Representatives to expedite the passage of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, a bill recently approved by the Senate. Trump, in a post on Truth Social, described the bill as "incredible" and "pure GENIUS," emphasizing its potential to position the US as a global leader in digital assets. He called for the House to advance the bill swiftly, without delays or amendments, to showcase American innovation and brilliance.

The GENIUS Act aims to establish the first regulatory framework for stablecoins in the US. These are digital tokens designed to maintain a stable value, typically pegged to the US dollar. The bill's passage through the Senate marks a significant step towards providing clear guidelines for the use and regulation of stablecoins, which offer near-instant, cost-effective, and flexible payment solutions compared to traditional methods.

As the bill moves to the House, there are concerns about potential differences between the Senate's version and the House's own proposal, the STABLE Act. House Republicans are considering whether to combine the stablecoin legislation with a broader bill that would divide oversight of digital assets among various market regulators. This approach could address key issues such as federal oversight structure, coordination with state regulators, and the regulatory treatment of algorithmic stablecoins, which are not covered by the GENIUS Act.

Congressman French Hill, a prominent advocate for crypto-friendly legislation, is exploring ways to pass multiple digital asset bills this year. However, some House Republicans are wary that passing the Senate's bill without amendments could hinder efforts to push for more comprehensive market structure legislation affecting the broader crypto industry. Senator Bill Hagerty, the main sponsor of the GENIUS Act, is eager to secure a legislative victory by sending the bill to Trump for approval before the Fourth of July. He cautioned that including additional market structure legislation could delay the bill's passage, as it would require further work in the Senate.

Trump's endorsement of the GENIUS Act underscores his support for digital assets and his belief in the US's potential to lead in this rapidly evolving field. His call for a "clean" version of the Senate bill serves as a reminder to House Republicans to act swiftly and without amendments. The outcome of this legislative process will have significant implications for the future of stablecoins and the broader crypto industry in the US. Industry leaders have welcomed Trump's stance, viewing it as a positive shift from the enforcement actions taken during the Biden administration. The U.S. Treasury Secretary Scott Bessent also expressed commitment to establishing the United States as a hub for digital asset innovation, highlighting the administration's support for the GENIUS Act.