The United States has passed its first major national cryptocurrency legislation, marking a significant turning point for the digital assets industry. Known as the Genius Act, the bill lays out a regulatory framework for stablecoins cryptocurrencies pegged to stable assets like the US dollar and signals a new era of government engagement with crypto.
Passed by the House of Representatives on Thursday and previously approved by the Senate, the bill is expected to be signed into law by President Donald Trump on Friday. This comes after years of lobbying from the crypto industry, which invested heavily in the 2024 election cycle and increasingly aligned itself with Trump’s candidacy.
The Genius Act mandates that stablecoins be backed one-to-one with dollars or similarly low-risk assets. These tokens are widely used in crypto markets to facilitate trading and reduce volatility. Proponents argue the bill brings much-needed clarity and legitimacy to the sector, helping the U.S. keep pace with global innovation in financial technology.
“This is a major milestone,” said one industry insider. “We finally have a foundation that can foster growth while giving confidence to investors and regulators alike.”
Despite the bipartisan support with about half of House Democrats joining Republicans to pass the bill critics warn it could introduce new risks. Consumer groups argue that legitimizing stablecoins without robust safeguards could mislead users about their safety and allow tech firms to operate like banks without equivalent oversight.
The bill’s passage is seen as a political win for Trump, who once dismissed crypto as a scam but has since embraced it through business ties, including those with World Liberty Financial. Critics suggest this evolving stance is linked more to political opportunism than policy conviction.
Two additional crypto bills, which would block the Federal Reserve from launching a digital currency and regulate other crypto assets, have passed the House and await Senate approval. However, analysts like Terry Haines of Pangaea Policy predict limited success.
“This may be crypto’s only major win for now,” Haines noted. “Even this relatively simple legislation took nearly five years to pass.”
Meanwhile, Bitcoin surged past $120,000 this week, reflecting market optimism at least for the moment.
