The US Just Passed Its First Big Crypto Law Here’s What It MeansTrending Innovators

Trending Innovators | 20 July 2025

In a major move that could reshape the future of digital finance, the United States has passed its first nationwide law regulating a key part of the cryptocurrency world.

On 18 July 2025, President Donald Trump signed the GENIUS Act a landmark piece of legislation focused on stable coins, a type of digital currency linked to traditional money like the US dollar.

This is the first time the US government has created clear rules for this proliferating part of the crypto economy.

What Are Stable coins?

Stable coins are digital tokens designed to maintain a fixed value usually 1 US dollar per coin. Unlike Bitcoin or Ethereum, which can fluctuate wildly, stable coins are backed by real assets such as cash or government bonds to stay steady in price.

They're often used for faster payments and transfers, but until now, they've existed in a legal grey area in the US.

What Does the GENIUS Act Do?

The new law lays out strict requirements for companies that issue stable coins:

• Stable coins must be backed one-to-one with real money or interim government securities.

  
  

• Monthly audits and public reports are required to prove those reserves exist.

  
  

• Issuers must be licensed either at a federal level or via state regulators with federal oversight.

  
  

• US agencies have 18 months to write the detailed rules, and companies then have 3 years to comply.

  
  
  
  

What Else Is in Motion?

Two other bills passed through the US House of Representatives alongside the GENIUS Act:

1. The Clarity Act – Helps divide responsibility between US regulators by clarifying which crypto assets are considered “securities” (overseen by the SEC) and which are “commodities” (handled by the CFTC).

   
   

2. The AntiCBDC Act – Blocks the US central bank from creating its own digital currency, due to concerns over privacy and government surveillance.

   
   

Both bills still need approval from the US Senate before they become law.

How Did the Markets React?

The crypto markets reacted positively:

• Bitcoin surged past $120,000.

  
  

• Ethereum rose by nearly 20%

  
  

• The overall crypto market value crossed $4 trillion the highest ever.

  
  

Major crypto firms like Coinbase, Gemini, and Tether welcomed the move, calling it a turning point for regulation and innovation.

But Not Everyone Is Celebrating

Despite the progress, there are concerns:

• Consumer rights groups say the law doesn’t go far enough to protect ordinary users.

  
  

• Critics fear large banks and tech companies could dominate the market with minimal oversight.

  
  

• Some point to possible conflicts of interest involving President Trump’s family and their links to cryptocurrency ventures.

  
  

• Others warn that banning a government run digital dollar (known as a CBDC) could leave the US behind as other countries like China push ahead.

What Happens Next?

• Government agencies will now draft the official rules, which should take around 12–18 months.

  
  

• Stable coin issuers have until mid2028 to comply with the new rules or face a ban from operating in the US.

  
  

• The Senate will vote later this year on the remaining two bills (Clarity Act and AntiCBDC Act).

  
  
  
  

Why This Matters

The GENIUS Act is a major turning point not just for the US, but for the global crypto landscpae. It signals that the world’s largest economy is finally embracing regulation to bring structure and safety to digital assets, without stifling innovation.

However, the real impact will depend on how the rules are enforced and whether they truly balance control, competition, and creativity.

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