President Trump enacted the first significant cryptocurrency legislation into law on Friday, representing a notable achievement for an sector that has gained a vital supporter under his administration.
He promoted the GENIUS Act, which creates a regulatory structure for dollar-pegged digital assets known as stablecoins, calling it "a major move to solidify America's leadership in worldwide finance and cryptocurrency innovation."
"This might possibly be the biggest advancement in financial technology since the creation of the internet," he stated during the signing event, standing alongside lawmakers and business executives.
The cryptocurrency-backed currency legislation took a long and often slow journey toward the White House.
Following passage through the Senate Banking Committee earlier this year, the GENIUS Act—Guiding and Establishing National Innovation for U.S. Stablecoins Act—encountered its initial obstacle in the upper house in May, as a faction of pro-crypto Democrats withdrew their backing and prevented a procedural vote on the floor.
After several weeks of discussions, a revised version of the legislation regained backing from the majority of the pro-crypto group on the left.
Initially pledging an open amendment process, Republican leaders abandoned efforts to advance the bill through what is known as regular order after some contentious amendments risked hindering momentum. The GENIUS Act eventually passed the Senate with a 68-30 vote at the end of June.
Trump, now a significant supporter of the cryptocurrency sector during his second administration, called on the House to swiftly approve a "pure" stablecoin legislation and bring it to his attention.
The president's proposal hindered initiatives by certain members of the House who wanted to link the GENIUS Act with an expanded cryptocurrency policy, enabling the lower house to exert influence over the bill and stop further cryptocurrency-related laws from stalling.
The House leadership decided to bring the GENUIS Act to the floor along with two additional cryptocurrency-related bills, but did not officially link them as part of what they referred to as "crypto week."
Nevertheless, cryptocurrency week turned out to be far more volatile than anticipated. A faction of conservative Republicans halted a procedural vote on Tuesday, causing the House floor to come to a halt and leaving the three cryptocurrency-related bills uncertain.
The main source of dissatisfaction among Republican lawmakers was the absence of a defined legal route to prevent the establishment of a central bank digital currency (CBDC).
Among the three bills being considered in the House was the Anti-CBDC Surveillance State Act, aimed at preventing the Federal Reserve from introducing a central bank digital currency. Nevertheless, the legislation appears to lack sufficient backing to pass through the Senate.
Trump struck an agreement with conservative lawmakers on Tuesday, under which they pledged their backing for the procedural vote in return for incorporating opposition to CBDCs into a third cryptocurrency-related bill—the Digital Asset Market Clarity Act.
This law is the House's framework for regulating the cryptocurrency marketplace, establishing clear guidelines for the industry by defining distinct areas of responsibility between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission.
Trump mentioned his late-night effort to convince the staunch supporters during last Friday's bill signing ceremony.
"I'm really fed up with making phone calls at 2, 3, or 4 in the morning, receiving calls from our excellent Speaker, 'Sir, we've got 12 outright refusals.' I respond, 'Mike, Mike, it's 2 o'clock in the morning,'” he stated.
Nevertheless, the president's agreement did not satisfy every dissenting member and sparked additional resistance from some lawmakers on the House Financial Services Committee. A procedural vote stayed active on the floor for over nine hours on Wednesday, setting a new record for the longest House vote ever recorded.
Following several hours of discussions, Republican leaders finalized an agreement with different groups within the party to include provisions opposing CBDCs in the National Defense Authorization Act (NDAA), increasing its likelihood of being signed into law by President Trump through its association with essential legislative measures.
The House approved with a vote of 308-122 to pass the GENIUS Act On Thursday, 102 Democrats backed the bill. Twelve Republicans, among them some from the initial staunch faction, cast their votes against it.
The chamber approved the Digital Asset Market Clarity Act with a result of 294 to 134, while the Anti-CBDC Surveillance State Act moved through the House with a score of 218 to 210 on Thursday.
The passage of the GENIUS Act represents a major victory for the cryptocurrency sector, which has experienced notable improvements in conditions during President Trump's second term.
"This agreement serves as significant recognition of your dedication and innovative mindset, along with your determination not to quit, since many individuals might have abandoned their efforts two or three years back," Trump stated to cryptocurrency executives on Friday.
The business sector maintained a fragile connection with the Biden government. Previous SEC Chairman Gary Gensler initiated multiple legal cases against cryptocurrency companies, leading critics to claim he did not establish definitive guidelines and instead sought to govern through enforcement measures.
Trump supported cryptocurrency throughout his 2024 campaign, even though he previously called it a "fraud."
Following his inauguration, he prioritized the industry by appointing David Sacks as his chief for artificial intelligence and cryptocurrency, hosted cryptocurrency executives at the White House, and issued an executive order establishing a Bitcoin strategic reserve and a collection of digital assets.
His government also promised to enact two important laws that have been desired by the sector – a stablecoin law and a cryptocurrency market framework law.
Although government officials originally aimed to pass both bills before Congress adjourns for its August break, it gradually became evident that only the GENIUS Act could successfully move through both legislative bodies.
The White House along with important Republican Senate members have indicated their desire to enact cryptocurrency market framework laws before the conclusion of September, as the upper house progresses more gradually.
Copyright 2025 Nexstar Media, Inc. All rights reserved. The content here cannot be shared, aired, altered, or distributed again.To stay updated with the newest information, including weather updates, sports events, and live videos, visit The Hill.