In a major step for cryptocurrency regulation, U.S. President Donald Trump has signed the GENIUS Act into law. This is the first major legislation in the United States focused on stablecoins—digital currencies that are tied to the value of the U.S. dollar or other real-world assets.
The new law requires all stablecoins to be fully backed by U.S. dollars or highly liquid assets. It also includes a rule that companies issuing stablecoins with a market value over $50 billion must go through yearly audits. This is to ensure transparency and protect users.
The GENIUS Act also puts stricter rules on stablecoins issued outside of the U.S. Its goal is to make sure America stays a leader in the global crypto market.
Trump Repeats Promise to Block Digital Dollar
While signing the bill, President Trump strongly restated his opposition to a U.S. central bank digital currency (CBDC). He said, “We will never allow the creation of a CBDC in America.” Trump also said he would not allow the U.S. dollar to lose value on the global stage.
U.S. Treasury Secretary Lauren Bessent supported the new law and said blockchain technology is key to the future of payments. “The U.S. dollar is coming onchain,” she added—referring to the idea that traditional money will increasingly move into digital systems powered by blockchain.
Crypto Market Booms After Law Passes
The crypto market responded with excitement. The total value of all cryptocurrencies jumped past $4 trillion this week, helped by a rally in altcoins like Ethereum and Solana. Bitcoin also soared to a new record high of $123,265.
Market analysts say the GENIUS Act gave investors fresh confidence. Fadi Aboualfa, from the crypto firm Copper, said that Bitcoin could soon hit $150,000 due to the momentum from the new law.
Crypto ETFs (exchange-traded funds) also saw a boost, attracting $8.4 billion in new investments in July. Traders are now expecting prices to rise further. Bitcoin options markets show increased bets that the price will continue to grow.
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