Key dealers
- Genius Act establishes the first comprehensive federal regulations for payment Stablecoins in the United States.
- Issuers must maintain complete reserves, regular audits and follow the rules against money laundering under the new law.
President Donald Trump signed Genius Act in law on Friday afternoon and created the first comprehensive federal regulations for payment Stablecoins in the United States.
“We worked hard. It is a very important act, Genius Act. They named it after me,” Joking Trump at the opening of the White House’s signing ceremony in the East Room. “And I want to thank – I want to thank you. This is a hell of an action.”
“This afternoon, we take a gigantic step to cement American dominance in global financing and crypto technology, when we sign the landmark Genius Act in law,” he said.
The signing ceremony saw the participation of members of Congress and crypto industry leaders, including Tether CEO Paolo Ardoino, Coinbase CEO Brian Armstrong, Circle Circle Jeremy Allaire, and Geminis Cameron and Tyler Winklevoss, to name a few.
Genius Act, which is short for guidance and establishment of national innovation for us Stablecoins Act, Cleaned congress on Thursday afternoon after ensuring approval from the US house. The bill Passed the Senate Last month.
With sponsored by the Senate Banking Committee Chairman Tim Scott and the tip of the Senate of Senator Bill Hagerty, the law establishes a double federal state supervisory system for Stablecoin issuers, which will be regulated by either federal bank regulators or government agencies based on their size and structure.
Stablecoins deliver obvious usability by offering cheap, 24/7 payments. But by enabling seamless and effective access to US dollars throughout developing countries, Stablecoins will also serve as a store of value when local monetary policy goes wrong.
Only designated permissible payment stablecoin issuers (PPSIS) may issue StableCoins in the United States after a mercy period.
Under the new framework, issuers must maintain complete reserves that support Stablecoins, conduct regular audits and maintain high openness standards. The law also grants coin owners’ priority repayment rights in the case of issuance and requires compliance with the rules against money laundering and the sanctions of anti -terrorism.
ACT’s ban on unapproved Stablecoin issues will enter into force about 18 months after the adoption, with the implementation expected around November 2026. This timeline allows regulatory authorities to issue implementation regulations and provide industry transition time.
Trump has consistently expressed support for Genius Act. The mentioned In March, Stablecoins was able to strengthen the US Dollar’s global dominance and legislation to adopt Stablecoin to encourage investment, innovation and financial stability.
“The genius act will go down in history as a law that served as a foundational step in the mainstream of crypto as an asset class. Opportunity Across the Globe, “Said Chris Perkins, Managing Partner and President of Coinfund, in a statement.
Trump also played a key role in promoting the bill, along with Clarity Act and Anti-CBDC ACT, by helping all three Clear important procedures before moving forward in the house.
“I am also involved in signing landmark crypto market structure legislation this year to grow the industry,” Trump said.
