In a landmark moment for the crypto world, the U.S. House of Representatives last week passed the GENIUS Act. The bill establishes the first comprehensive federal framework for fiat-backed stablecoins and was passed with a 308–122 vote, reflecting bipartisan support.
The GENIUS Act was signed into law by President Donald Trump the following day at a ceremony attended by leading politicians and industry figures.
After prolonged debate, regulatory uncertainty, and increasing calls for oversight from both industry leaders and policymakers, the Guiding and Establishing National Innovation for U.S. Stablecoins Ac t— better known as the GENIUS Act—received strong bipartisan backing. The legislation creates a clear framework for fiat-backed stablecoins, enhancing consumer protection and offering long-awaited regulatory clarity for crypto markets in the world’s largest economy.
On the House floor, lawmakers voted 308–122 in favor of the GENIUS Act. The breakdown shows widespread Republican support and a split Democratic caucus.
While a majority of Democrats voted against, over 100 Democratic lawmakers joined Republicans in backing the bill, including House Minority Leader Hakeem Jeffries. The result signals growing bipartisan consensus around the need for a clear and enforceable set of rules for digital assets — particularly those acting as digital equivalents of the U.S. dollar.
The GENIUS Act creates a federal regulatory framework specifically for fiat-backed stablecoins, such as USDC and PayPal USD. These tokens—pegged 1:1 to traditional assets like the dollar—are increasingly used for payments, cross-border transfers, and decentralized finance (DeFi) activities.
Key provisions include:
For years, crypto companies operating in the U.S. have warned that regulatory uncertainty stifles innovation and drives talent overseas. The GENIUS Act is seen as a game-changer for multiple sectors:
“Regulatory clarity changes the game for crypto in America,” said a spokesperson from Coinbase. “This is the kind of leadership we’ve been asking for.”
Because the U.S. plays such a disproportionately large role in global finance, analysts believe the GENIUS Act will set a global benchmark for stablecoin regulation. Other major economies—including the EU, UK, and Japan — are closely watching how U.S. standards evolve, and may craft their own frameworks in response.
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