US Passes Landmark National Cryptocurrency Legislation

In a historic development for the digital asset sector, the United States has approved its first comprehensive national law regulating cryptocurrency.

This new legislation represents a significant step forward for the crypto industry, which has spent years lobbying for regulatory clarity and invested heavily in political campaigns, including support for Donald Trump during last year’s election.

The law, titled the Genius Act, establishes a formal regulatory framework for stablecoins—a category of cryptocurrencies tied to traditional assets such as the US dollar to minimize volatility. The bill was passed by the House of Representatives on Thursday, following earlier approval by the Senate. President Trump is expected to sign it into law on Friday.

Despite his past criticisms of crypto, calling it a scam, Trump has since aligned himself with the industry, building business relationships with companies like World Liberty Financial and backing related legislative efforts. The Genius Act is one of three crypto-related bills in Washington that have gained his support.

Proponents of the bill argue that it will provide much-needed oversight to the growing stablecoin market, helping the United States remain competitive in the evolving global financial landscape. It requires stablecoins to be backed on a one-to-one basis with US dollars or other low-risk assets, which supporters believe will encourage broader adoption of digital currencies.

Stablecoins are frequently used to facilitate crypto trading by enabling smooth movement between tokens without the volatility seen in assets like Bitcoin or Ethereum. Their popularity has surged in recent years as traders and institutions look for stable alternatives in the crypto ecosystem.

However, the legislation has drawn criticism from some advocacy and consumer protection groups. Opponents caution that legitimizing stablecoins may introduce new financial risks and enable tech firms to operate like banks without being held to equivalent regulatory standards. Critics also fear that in the event of a stablecoin firm’s collapse, customers could face complicated and insufficient bankruptcy protections.

Detractors further attempted to frame the legislation as an endorsement of Trump’s personal crypto interests, including digital coins promoted by his family. Nevertheless, the bill garnered bipartisan support, with approximately half of House Democrats and a majority of Republicans voting in favor.

Consumer advocacy organizations issued warnings earlier this year, saying the bill could lead to the widespread adoption of digital assets that the public might mistakenly view as completely secure.

Although the Genius Act was expected to pass earlier this week alongside two other crypto-related bills, last-minute delays postponed the vote. The other two bills—one that restricts the Federal Reserve from issuing a digital currency, and another that proposes regulations for various cryptocurrencies—have cleared the House and are now under Senate review. Republicans currently maintain a slim majority in the Senate.

Meanwhile, there are reports that President Trump is considering an executive order allowing retirement portfolios to include private assets like cryptocurrencies, gold, and private equity.

In a sign of rising enthusiasm for digital assets, Bitcoin recently reached a new all-time high, exceeding $120,000.

Still, some analysts believe the Genius Act might be the only major legislative victory for crypto in the near future. Terry Haines of Pangaea Policy commented, “If it takes nearly five years to pass stablecoin legislation, despite scandals and setbacks, it’s unlikely we’ll see more significant progress soon.”