Bipartisan vote marks the first major federal legislation to regulate stablecoins as Trump-backed crypto agenda gains momentum
The U.S. House has passed the Genius Act, the first significant legislation regulating cryptocurrencies. The bill mandates strict reserve requirements for stablecoin issuers and marks a turning point in the crypto industry’s integration into mainstream finance.
In a landmark development for the cryptocurrency industry, the U.S. House of Representatives has passed the Genius Act—the first major federal legislation aimed at regulating crypto assets. The bill, which garnered strong bipartisan support with a 308-122 vote, sets new standards for the issuance and oversight of stablecoins. With the Senate having already approved the measure in June, the Genius Act now heads to President Donald Trump, who has pledged to sign it into law.
Stability for Stablecoins
At the core of the Genius Act is the regulation of stablecoins—cryptocurrencies pegged to the U.S. dollar or similar assets to reduce volatility. Under the new law, issuers such as banks and crypto firms must maintain sufficient dollar reserves to match the value of stablecoins in circulation. These entities will also be required to publish transparent reports detailing their reserves.
The bill represents a major step toward establishing a clearer framework for a digital economy increasingly powered by blockchain technology.
“President Trump promised to make America the crypto capital of the world, and today we delivered,” House Majority Whip Tom Emmer (R-Minnesota) declared after the vote.
Crypto Week Legislation Clears Hurdles
The Genius Act is one of three key crypto bills considered during what Republicans dubbed “crypto week.” After internal disagreements stalled progress, President Trump personally intervened to rally support and secure the final votes.
Alongside the Genius Act, the House passed the Clarity Act—establishing the Commodity Futures Trading Commission as the lead regulator of digital assets—and the Anti-CBDC Surveillance State Act, which would prohibit the Federal Reserve from creating a central bank digital currency. Both bills now await Senate approval.
A Divided Response on Capitol Hill
While supporters have hailed the Genius Act as a necessary step to modernize U.S. financial regulation and strengthen the country’s competitiveness in the $260 billion stablecoin market, critics raised concerns about potential conflicts of interest tied to President Trump’s personal investments.
“The one thing that stands out about everything else is the president is definitely in conflict of interest,” said Rep. Maxine Waters (D-California) during a Rules Committee hearing. “This is corruption in its finest form.”
White House spokeswoman Anna Kelly countered the allegations, saying Trump’s crypto assets are held in a trust managed by his adult children. “President Trump is dedicated to making America the crypto capital of the world and revolutionizing our digital financial technology,” Kelly stated.
A Changing Regulatory Climate
The Trump administration’s approach marks a stark contrast to the more stringent stance of the Biden era, which was characterized by aggressive enforcement by the Securities and Exchange Commission. That administration filed lawsuits against major crypto firms and pursued criminal cases, including the high-profile conviction of FTX founder Sam Bankman-Fried.
In response to regulatory crackdowns, the crypto sector mounted a vigorous lobbying campaign and poured substantial funding into Trump’s 2024 presidential bid. According to The Washington Post, Trump-affiliated crypto ventures, including World Liberty Financial and the meme coin USD1, have generated hundreds of millions in revenue since January.
First Step into Federal Crypto Oversight
The House’s passage of the Genius Act marks a pivotal moment in the integration of cryptocurrency into U.S. financial regulation. With bipartisan support and presidential backing, the bill is poised to bring a once-shadowed industry into the regulatory spotlight. As Trump’s crypto-friendly agenda moves forward, the true test will lie in implementation—and in balancing innovation with transparency and accountability.
