Trump signs new stablecoin regulations into law, a major milestone for
crypto industry
[July 19, 2025] By
SEUNG MIN KIM and ALAN SUDERMAN
WASHINGTON (AP) — President Donald Trump on Friday signed into law new
regulations for a type of cryptocurrency, a major milestone for an
industry that has spent heavily to strengthen its legitimacy and
political might.
The GENIUS Act sets initial guardrails and consumer protections for
stablecoins, which are tied to assets like the U.S. dollar to reduce
price volatility compared with other forms of cryptocurrency. It passed
both the House and Senate with wide bipartisan margins.
The new law is meant to bolster consumer confidence in the crypto
industry, which has quickly become a major power player in Washington
thanks to massive campaign donations and spending on lobbying. Its
passage comes as Trump had repeatedly pledged to make the U.S. the
“crypto capital of the world.”
“For years you were mocked and dismissed and counted out," Trump told
crypto industry executives at a White House bill signing attended by
about 200 people, including several top GOP lawmakers. “This signing is
a massive validation of your hard work and your pioneering spirit.”
The crypto industry has long complained it was unfairly targeted by
former President Joe Biden's administration and spent heavily to help
Trump win last year's election.
The president lavished praise on crypto leaders during his speech
Friday, saying “nobody has gained the respect in such a short period of
time.”
Trump said helping the cryptocurrency industry was “good for the dollar
and it’s good for the country.”
“That’s why I backed you at an early stage,” said Trump, who had
previously been a skeptic of cryptocurrency before embracing it. His
administration has taken several early steps to boost the crypto
industry, including the Securities and Exchange Commission dropping
several enforcement actions against large crypto companies.
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White House AI and crypto czar David Sacks speaks as President
Donald Trump listens at an event for the signing of the GENIUS Act,
a bill that regulates stablecoins, a type of cryptocurrency, in the
East Room of the White House, Friday, July 18, 2025, in Washington.
(AP Photo/Alex Brandon)
 Trump then added a candid admission
about the political calculus of his support for the crypto industry:
“And I also did it for the votes,” he said, drawing laughter from
the audience.
The president also joked that lawmakers had named the GENIUS Act
after him. The acronym stands for “Guiding and Establishing National
Innovation for U.S. Stablecoins.”
The use of stablecoins has grown dramatically in recent years.
Circle, the U.S.-based issuer of one of the most popular
cryptocurrencies, made its debut on the New York Stock Exchange
earlier this year and quickly saw its value soar amid heavy interest
from crypto enthusiasts and investors. Stablecoin issuers make
profits by collecting the interest on the assets they hold in
reserve to back their stablecoins.
A provision in the GENIUS Act bans members of Congress and their
families from profiting off stablecoins. But that prohibition does
not extend to the president and his family, even as Trump builds a
crypto empire from the White House. His family holds a significant
stake in World Liberty Financial, a crypto project that launched its
own stablecoin earlier this year and received an early boost from an
investment fund in the United Arab Emirates.
The House also passed two other bills Thursday that are meant to
help the crypto industry. One creates a new market structure for
cryptocurrency, and the other bans the Federal Reserve from issuing
a new digital currency. Both measures now go to the Senate.
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