On Friday, US President Donald Trump signed the GENIUS Act into law, making it the major regulatory framework for stablecoins in US history. The legislation, hailed as a major victory for the crypto industry, establishes clear federal guidelines for USD-backed stablecoins.
According to the US President, the bill will solidify America’s position as the global leader in blockchain innovation. USD-pegged stablecoins will help the US to strengthen its USD.
SEC Chairman Calls GENIUS Act a “Monumental Step”
On this major legislation, SEC Chairman Paul Atkins called the signing a “monumental step forward for crypto assets.” He mentioned the transformative power of blockchain technology for the US financial system. President Trump’s leadership ensures that America remains the best and most secure place in the world to invest and do business,” Atkins said in an official statement.
“Clear rules of the road that allow market participants to adopt emerging technologies with confidence. President Trump and the entire Administration are sending a powerful message that America is ready to embrace crypto asset innovation,” he added further.
The GENIUS Act, which had bipartisan support, provides long-awaited regulatory clarity for stablecoins. These tokens have become a crucial part of crypto transactions, which offer faster settlements and lower costs than traditional banking systems.
Atkins stressed that the law will boost efficiency and lower costs while addressing Trump’s vision to make the US the “crypto capital of the world.”
SEC Commissioner: GENIUS Act Ends “Regulatory Limbo”
The legislation explicitly states that payment stablecoins are not securities, a clarification that has been a point of contention between regulators and the crypto industry for years. SEC Commissioner Hester Peirce, a longtime advocate for sensible crypto regulation, celebrated the move as a “necessary prerequisite for innovation in our markets to flourish and for the American public to benefit from that innovation.”
“People have voted with their dollars—privately issued stablecoins already enjoy broad use as a payment mechanism. The GENIUS Act, by putting a regulatory framework around them, aims to protect current and future users and the financial system. The GENIUS Act charges state and federal banking regulators with overseeing payment stablecoin issuers. This clear direction from Congress also should serve as a catalyst for the SEC to provide guidance on how SEC registrants can use—and accommodate their customers’ use of—payment stablecoins,” Peirce noted.
Also Read: Trump Signs GENIUS Act, the First Cryptocurrency Legislation
