US Passes Landmark ‘Genius Act,’ Setting National Crypto Regulation

In a significant move for the burgeoning cryptocurrency industry, the United States Congress has successfully passed the ‘Genius Act,’ marking the nation’s first comprehensive national legislation aimed at regulating digital assets. The bill, which establishes a clear regulatory framework for stablecoins, has been a major focus of industry lobbying efforts for years, with substantial financial backing from crypto firms influencing recent elections.

President Donald Trump is anticipated to sign the ‘Genius Act’ into law this Friday, following its passage by the House on Thursday. The Senate had previously approved the measure last month. This legislative progress represents a notable shift in the President’s stance on cryptocurrency, having previously expressed skepticism, but later embracing the sector and engaging in related business ventures.

Proponents of the ‘Genius Act’ argue that it provides much-needed clarity for a rapidly expanding industry, ensuring the US remains competitive in global payment system advancements. A key provision mandates that stablecoins, often used by traders to move funds between different crypto tokens, must be backed one-to-one by US dollars or other low-risk assets. This aims to bolster confidence and mainstream adoption of digital currencies.

However, critics voice concerns that the bill may introduce new systemic risks by legitimizing stablecoins without adequate consumer protections. They highlight worries about increased participation of tech firms in bank-like activities without similar oversight, and potential complications for consumers in the event of a stablecoin firm’s failure. Despite these objections and attempts to link the bill to the President’s business dealings, the legislation garnered substantial bipartisan support, passing with backing from a majority of Republicans and approximately half of Democrats.

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