Trump Backs Landmark Crypto Law as Industry Gains Ground in U.S.

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In a landmark move for financial innovation, the United States has enacted its first major legislation aimed at regulating the cryptocurrency industry, marking a pivotal shift in Washington’s stance toward digital assets. The new law, signed by former President Donald Trump, focuses on stablecoins and lays the groundwork for further crypto regulation, signaling growing support from federal lawmakers and a notable victory for the sector.

The legislation, officially titled the Generating Effective National Investment in Unified Systems Act (GENIUS Act), was passed by the House of Representatives with bipartisan support and quickly signed into law by President Trump during a public ceremony. The act introduces a regulatory framework for stablecoins, digital tokens backed by traditional currencies such as the U.S. dollar, mandating that issuers maintain full reserves and follow anti-money laundering protocols. Stablecoins are widely seen within the industry as a stepping stone toward mainstream adoption of cryptocurrencies due to their price stability and utility in digital transactions.

“This afternoon, we take a giant step to cement American dominance of global finance and crypto technology,” Trump said during the bill signing, positioning the U.S. as a future hub for digital financial infrastructure. The passage of the GENIUS Act also sent shockwaves through the crypto market, which surged to a record $4 trillion valuation, reflecting renewed investor confidence and anticipation of further integration into the financial system.

Key industry players, such as Dante Disparte of Circle, a major stablecoin issuer, hailed the law as a long-overdue recognition of crypto’s role in modern commerce. “The law sets a very clear standard, one that even major banks would have to meet,” Disparte said. Circle, like other companies in the space, views stablecoins as a means of facilitating near-instant, borderless payments without relying on traditional banking systems.

Despite the celebration among crypto advocates, critics warn that the legislation does not go far enough in ensuring robust consumer protections. Groups such as Better Markets argue the bill reflects undue influence from crypto lobbyists, who spent over $100 million on congressional campaigns last year. Amanda Fischer, the organization’s policy director, said the law is “more hype than substance,” and fears it may open the door to financial instability if oversight is diluted further.

A second piece of legislation, the Cryptocurrency Legal Accountability, Reporting, and Innovation Transparency for You Act (CLARITY Act), was also passed by the House as part of what Republican lawmakers dubbed “crypto week.” This bill aims to transfer oversight authority of digital assets from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), a smaller agency traditionally focused on commodities and derivatives. Crypto proponents argue that the SEC’s approach, particularly under the previous administration, has stifled innovation through aggressive enforcement actions. The CLARITY Act is now awaiting consideration in the Senate, where its fate remains uncertain.

While detractors frame the crypto push as risky, supporters view it as a critical evolution in how Americans conduct business and move money. Kevin Lehtiniitty, Chief Executive Officer of Borderless.xyz, believes stablecoins will eventually become the default for everyday transactions. “Over the next 10 to 20 years, we’re going to see stablecoins replace much of the current payment infrastructure,” he said.