Trump Signs GENIUS Act Regulating Stablecoins in the US

President Donald Trump has signed the GENIUS Act into law, setting the groundwork for federal regulation of stablecoins in the US. The law introduces a framework governing stablecoin issuance, reserve management, and transparency.

The key provisions of the act include mandatory 1:1 backing of stablecoins with US dollars or highly liquid equivalents, regular third-party audits to verify reserve holdings, and dual licensing options for issuers.

Supporters argue that the law provides a clear legal pathway for private-sector stablecoin issuers while imposing safeguards to address systemic risk. However, critics warn of potential slippery slopes toward surveillance-oriented digital currency systems.