In a landmark development for the digital asset industry, US lawmakers have passed the country’s first major national cryptocurrency legislation, establishing a formal regulatory framework for stablecoins. The bill, known as the Genius Act, passed the House of Representatives on Thursday after securing Senate approval last month. President Donald Trump is expected to sign it into law on Friday.
The legislation marks a significant shift for the once-niche cryptocurrency sector, which has lobbied Congress for years in pursuit of regulatory clarity. The industry has also ramped up political engagement, investing millions in the 2024 election cycle and aligning itself with pro-crypto candidates, including Trump.
Stablecoins—cryptocurrencies pegged to assets like the US dollar—are at the heart of the bill. These digital tokens are widely used by traders for transactions between crypto assets and are designed to minimize volatility. Under the new law, stablecoin issuers will be required to back their coins one-to-one with US dollars or similarly low-risk assets.
Supporters say the law is intended to modernize the US financial system, foster innovation, and ensure the country keeps pace with evolving global payment technologies.
“This bill gives consumers and businesses a safer and more stable way to engage with digital assets,” said a House Republican who supported the legislation. “It’s a necessary step to bring transparency and security to a growing market.”
The Genius Act is one of three crypto-related bills backed by Trump currently progressing through Congress. It also reflects Trump’s broader pivot toward digital assets. Once skeptical of cryptocurrency, he has since embraced the industry, forming business ties with companies such as World Liberty Financial and promoting blockchain initiatives.
Despite bipartisan support, the bill has faced criticism from some lawmakers and advocacy groups. Opponents argue it legitimizes a risky and loosely regulated part of the financial sector, while failing to provide sufficient safeguards for consumers.
“A vote for this bill is a vote to allow tech firms to operate like banks without the same oversight,” a coalition of consumer groups warned in a letter to Congress earlier this year. “It creates the illusion of safety around assets that remain fundamentally untested.”
Roughly half of House Democrats voted in favor of the bill, joining the majority of Republicans. Debate over the legislation was briefly delayed this week by unrelated calls to release files related to Jeffrey Epstein.
Meanwhile, two additional cryptocurrency bills—one blocking the Federal Reserve from issuing a central bank digital currency (CBDC) and another laying out broader crypto regulations—have passed the House and are awaiting Senate action. However, analysts believe their prospects are uncertain.
“This may be the end of crypto’s legislative momentum for now,” wrote Terry Haines of Pangaea Policy. “Stablecoin regulation was the low-hanging fruit—and it still took nearly five years to pass.”
The breakthrough comes as Bitcoin hit an all-time high this week, trading above $120,000, driven by growing investor interest and political tailwinds.
