President Trump said, as he signed the new law, the GENIUS Act “creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins. This could be perhaps the greatest revolution in financial technology since the birth of the internet itself.”
As part of President Trump’s move to make America the dominant player in the crypto currency marketplace the GENIUS Act protects consumers from nefarious actors in financial markets:
- This long-overdue legislation creates the first-ever Federal regulatory system for stablecoins, ensuring their stability and trust through strong reserve requirements.
- The GENIUS Act requires 100% reserve backing with liquid assets like U.S. dollars or short-term Treasuries and requires issuers to make monthly, public disclosures of the composition of reserves.
- Stablecoin issuers must comply with strict marketing rules to protect consumers from deceptive practices. Crucially, they are forbidden from making misleading claims that their stablecoins are backed by the U.S. government, federally insured, or legal tender.
- The GENIUS Act aligns State and Federal stablecoin frameworks, ensuring fair and consistent regulation throughout the country.
- In the event of insolvency of a stablecoin issuer, the GENIUS Act prioritizes stablecoin holders' claims over all other creditors, ensuring a final backstop of consumer protection.
- The GENIUS Act will generate increased demand for U.S. debt and cement the dollar's status as the global reserve currency by requiring stablecoin issuers to back their assets with Treasuries and U.S. dollars.
- Additionally, the GENIUS Act will play a key role in attracting more digital asset activity to the country by providing clear rules and promoting responsible innovation in the stablecoin market.
Through regulation and registration of stablecoin issuers, along with coordination with the Treasury Department on sanctions enforcement, the GENIUS Act reinforces our national security:
- The GENIUS Act explicitly subjects stablecoin issuers to the Bank Secrecy Act, thereby clearly obligating them to establish effective anti-money laundering and sanctions compliance programs with risk assessments, sanctions list verification, and customer identification.
- This legislation improves the Treasury Department's ability to combat illicit stablecoin activities by enhancing its sanctions evasion and money laundering enforcement capabilities.
- All stablecoin issuers must possess the technical capability to seize, freeze, or burn payment stablecoins when legally required and must comply with lawful orders to do so.
Coinbase Co-founder and CEO Brian Armstrong praised the signing of the bill saying, “A big shoutout to President Trump and this entire Administration for getting such strong, bipartisan support to get these bills through. This is exactly what’s going to allow this technology to be built here in America and ensure that the dollar remains very strong.”
Kraken Co-CEO Dave Ripley applauded President Trump’s leadership saying, “This brings cryptocurrency and the U.S. dollar together … We can now bring the U.S. dollar to more and more global payments around the world. I think it’s a huge win for the crypto industry, and a huge win, frankly, for the U.S. dollar — and for the United States.”
Finally, and most importantly, Anchorage Digital Co-founder and CEO Nathan McCauley predicted, “American dollar dominance and has been ensured for the next century.”
- Trump policy
- Trump Crypto policy
- Crypto currency
- GENIUS Act
- Anchorage Digital
- Dollar backed stablecoins
- Federal Reserve Backing
- Reserves
- Federal regulation
- US Dollar reserve currency
- US Debt
- Bank Secrecy Act
- National Security
- Treasury Department
