Trump Signs GENIUS Act, Regulating Stablecoins

President Donald Trump has signed the GENIUS Act into law, creating the first federal regulatory framework for U.S. dollar-pegged stablecoins. The law mandates that stablecoins be fully backed by liquid assets such as U.S. dollars or Treasury bills, with issuers required to provide monthly disclosure of reserves and annual audits for large operators. The act passed with bipartisan support and follows extensive industry lobbying, signaling a new era of legitimacy for digital assets in the U.S. Efforts to ban a U.S. central bank digital currency (CBDC) were excluded from the GENIUS Act and addressed separately. Despite optimism among crypto investors and corporations, only 2 percent of U.S. adults currently use crypto for payments, underscoring challenges to widespread adoption. Trump's family has also increased its involvement in the crypto sector, including ventures like World Liberty Financial.