Trump signs stablecoin GENIUS Act with bipartisan support

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July 22, 2025

President Donald Trump officially signed the GENIUS Act into law, which will regulate stablecoins. The bill received significant bipartisan support in both the House and the Senate as it passed with 308 yeas in the House and 68 yeas in the Senate, which included 18 Democrat senators and 102 Democrat representatives, according to Congress.gov.

Under this legislation, “only permitted issuers may issue a payment stablecoin for use by U.S. persons, subject to certain exceptions and safe harbors.”

The legislation also adds that “Permitted issuers must maintain reserves backing the stablecoin on a one-to-one basis using U.S. currency or other similarly liquid assets, as specified. Permitted issuers must also publicly disclose their redemption policy and publish monthly the details of their reserves.”

The stablecoins would not be considered securities but would have to follow the Bank Secrecy Act for anti-money laundering.

However, some agencies are concerned about this law.

“The reason you would never recommend grandmother use a stablecoin is she would have to give away a dollar that’s protected by the federal government and deposit insurance, and which comes with a ton of consumer protections, and which pays interest in her banking account, in exchange for a stablecoin that doesn’t have any of those things,” Corey Frayer, director of investor protection for the Consumer Federation of America, said in a report for NBC News.

Frayer also noted concerns over stablecoins not having to follow banking protections. There are also concerns over conflict of interest with the Trump administration as the Trump Organization operates a stablecoin through World Liberty Financial.

Under the law, the Office of the Comptroller of Currency will handle stand-alone issuers, and the Federal Reserve, FDIC and National Credit Union Administration will handle the rest, according to a report by The Hill.

Some stablecoin issuers are aiming to become chartered banks with the OCC, which has seen some pushback from banking associations.

Other big banks are looking at creating their own stablecoins, including Bank of America and Citigroup.

There are other cryptocurrency bills still under discussion, including one to determine how the SEC and Commodity Futures Trading Commission will split up responsibilities for regulating cryptocurrency.