The U.S. House of Representatives passed the GENIUS Act on Thursday, creating the first government legal framework for stablecoins, or cryptocurrencies based on the U.S. dollar, in a landmark decision for the digital asset sector. The crypto bill is currently on its way to President Donald Trump, who is anticipated to sign it into law.
In a bipartisan vote of 308–122, the House passed the bill, with more than 100 Democrats, including House Minority Leader Hakeem Jeffries, joining Republicans in support. For crypto proponents who have long demanded clear national norms to regulate the expanding industry, the measure represents a significant turning point.
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Key Provisions of the GENIUS Act
The GENIUS Act imposes stringent conditions on stablecoin issuers, requiring that tokens be completely backed by highly liquid assets like short-term Treasury bills and US cash. In order to prevent systemic risk and foster public trust, it also mandates monthly public reporting of those reserves.
According to supporters, the measure creates the framework for stablecoins to join the mainstream financial system as a secure and authorised component, facilitating quicker and more dependable online transactions.
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House Also Advances Broader Crypto and Anti-CBDC Bills
The momentum behind crypto policy continued to grow. In order to clarify when digital assets should be regarded as securities or commodities, the House also passed the CLARITY Act, which attempts to address long-standing regulatory ambiguity. The bill is now on its way to the Senate after passing 294–134.
The House also approved a more partisan bill that would prohibit the issue of a U.S. central bank digital currency (CBDC), and the Senate is now reviewing it.
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Industry and Political Reactions
Crypto experts hailed the votes as a significant victory. Blockchain companies have lobbied lawmakers and supported pro-crypto candidates with over $119 million in the last year.
According to former CFTC official and Blockchain Association CEO Summer Mersinger, the GENIUS Act’s enactment marked a “defining moment in the evolution of U.S. digital asset policy.”
Key Democratic officials including Nancy Pelosi and Pete Aguilar voted in favour of the legislation despite vigorous opposition from some Democrats, such as Rep. Maxine Waters, who accused the laws of potentially helping Trump’s cryptocurrency-related endeavours and warned they could pose hazards to financial stability.
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Trump’s Ties to Crypto
Trump’s support for bitcoin and blockchain policy reform has grown. The meme coin $TRUMP and World Liberty Financial, a cryptocurrency company that is partially controlled by his family, are among the many cryptocurrency endeavours with which he is connected.
Trump’s assets are held in a trust that is run by his children, according to the White House, which has said there is no conflict of interest.
Trump is anticipated to sign the GENIUS Act into law, putting the United States in a position to pass its first complete federal crypto legislation. This may be a game-changer, establishing digital assets as a regulated and essential component of the American financial system.