In a groundbreaking move for the cryptocurrency landscape, President Trump has officially signed the GENIUS Stablecoin Act into law, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act. 
This is the first major cryptocurrency-focused law in the United States, marking a pivotal shift in the regulation of digital currencies. The legislation aims to create a comprehensive regulatory framework for stablecoins, providing much-needed clarity in the fast-evolving crypto sector.
Despite initial hurdles, including concerns from some members of Congress about the bill’s failure to protect self-custody of crypto assets and its lack of provisions to prevent a potential Central Bank Digital Currency (CBDC), Trump managed to rally enough support to push the act through. After meeting with dissenting lawmakers at the White House, he won over 11 out of 12 of the remaining members needed to secure the act’s passage.
The GENIUS Stablecoin Act establishes a robust structure for stablecoins, particularly those pegged to the US Dollar. It mandates that these coins be fully backed by eligible reserves, specifically US Treasuries, on a 1:1 basis. The law also requires monthly audits and regular disclosures of these reserves. Furthermore, while the bill allows banks and other qualified entities to issue stablecoins without the burdensome restrictions of securities laws, it ensures compliance with anti-money laundering (AML) and Know Your Customer (KYC) regulations.
This legislation is expected to significantly boost the market for USD-pegged stablecoins, with projections estimating the sector’s total addressable market (TAM) will grow from $240 billion today to $750 billion by 2026.
In addition to the GENIUS Act, two other major crypto-related bills, the Anti-CBDC Act and the Clarity Act, have been passed. The latter clarifies the division of regulatory authority over the crypto sector between the SEC and CFTC while providing a framework for consumer protection. Both of these bills are now on their way to the Senate for approval.
Meanwhile, BlackRock, a leader in asset management, has made a significant shift in its crypto investments, now focusing heavily on Ethereum over Bitcoin. This change in strategy signals the potential start of an altcoin craze as more institutional investors follow suit.