US lawmakers have approved the country’s first major national cryptocurrency legislation, marking a milestone for an industry that has long lobbied Congress for clear regulations. The bill, known as the Genius Act, establishes a regulatory framework for stablecoins, a type of cryptocurrency backed by reliable assets such as the US dollar.
President Donald Trump is expected to sign the measure into law on Friday after the House passed it on Thursday, following Senate approval last month. The act is one of three cryptocurrency bills backed by Trump that are advancing through Washington.
Stablecoins, designed to hold a stable value, are increasingly used by traders to move funds between digital tokens and have grown rapidly in recent years. Under the new law, stablecoins must be backed one-for-one by US dollars or similarly low-risk assets to bolster confidence in the market and integrate digital currency into mainstream payment systems.
Supporters say the legislation will provide long-awaited clarity for the growing crypto industry, ensuring the United States keeps pace with advances in global payment systems. Critics, however, argue that the measure could introduce new risks into the financial system by legitimizing stablecoins without adequate consumer protections. They warn that the law may encourage tech companies to engage in bank-like activities without proper oversight, potentially leaving customers vulnerable if a stablecoin issuer collapses.
Some opponents also attempted to rally resistance by linking the legislation to Trump’s personal business interests, including his family’s promotion of their own cryptocurrency ventures. Despite this, the bill garnered bipartisan support, with roughly half of Democrats and a majority of Republicans voting in favor.
Consumer advocacy groups expressed concern in a letter to Congress, warning that passage of the bill could lead consumers to wrongly assume that stablecoins are entirely safe. They emphasized that legitimizing these assets without robust safeguards amounts to a fundamental misunderstanding of the risks involved.
The cryptocurrency industry has poured millions into lobbying efforts and campaign contributions, backing candidates including Trump during last year’s election. The passage of the Genius Act represents the culmination of years of industry pressure to bring digital assets into the mainstream financial system.
Meanwhile, the other two cryptocurrency bills backed by Trump, which aim to prevent the creation of a US central bank digital currency and establish a broader regulatory framework for other cryptocurrencies, have passed the House and await Senate consideration. Republicans hold a narrow majority in the Senate, but analysts remain uncertain about the bills’ prospects.
This legislative milestone comes as Bitcoin hit a record high of 120,000 dollars this week. Industry analysts note that while the passage of the Genius Act marks a significant win for crypto advocates, further major legislative victories could be difficult. As Washington-based policy analyst Terry Haines remarked, the stablecoin bill may be the easiest measure to pass, yet it still took several years to navigate industry scandals and political obstacles.
