Donald Trump Signed the Stablecoins Genius Act

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Donald Trump Signed the Stablecoins Genius Act

has signed the , which sets clear rules for stablecoins and represents the first significant regulation of the crypto industry in the United States.

On July 17, the bill was approved by the House of Representatives. That day, lawmakers passed three bills related to digital assets, including the CLARITY Act and the Anti-CBDC Act.

The GENIUS Act establishes requirements for fully backing stablecoins with liquid assets and mandates annual audits for issuers whose stablecoin market capitalization exceeds $50 billion. The Act also prohibits the payment of interest or other income to stablecoin holders and sets governing rules for foreign companies operating in this sector.

“The GENIUS Act creates a clear and simple regulatory framework for creating and unlocking the enormous potential of dollar-backed stablecoins,” Trump said during the signing ceremony.

The signing event was attended by several industry figures, including Gemini co-founders Cameron and Tyler Winklevoss, Circle CEO Jeremy Allaire, Tether head , and Robinhood CEO Vladimir Tenev.

“You, the entire crypto community, have been ridiculed and written off for years […] but this signing is a powerful affirmation […] of your hard work and pioneering spirit,” the president said, addressing the audience.

The GENIUS Act will take effect either six months, or 120 days after regulators issue the rules to implement it. (Clarify exact timeframe based on official text.)

According to CoinGecko, , with a market capitalization approaching $161 billion, while Circles USDC has reached nearly $65 billion.

Among the largest stablecoins is USD1, launched by the DeFi platform World Liberty Financial and the Trump family. Critics have repeatedly pointed out potential conflicts of interest due to the presidents ties to crypto projects, including the TRUMP meme coin.