Trump Signs First Major Crypto Bill Into Law
The GENIUS Act ushers in a new era for stablecoins, with Wall Street and Washington watching closely.
In a historic move that marks the first major cryptocurrency law in U.S. history, President Donald Trump on Friday signed the GENIUS Act into law, establishing a comprehensive federal framework for dollar-backed stablecoins. The signing capped what supporters dubbed “Crypto Week,” a whirlwind stretch of legislative victories for the digital asset industry.
“This afternoon we take a giant step to cement American dominance in global finance and crypto technology as we sign the landmark GENIUS Act into law,” President Trump said at the White House ceremony, flanked by industry leaders and top Republican lawmakers.
The law sets firm rules for how U.S. firms can issue and manage stablecoins, including full reserve backing in U.S. dollars or Treasurys, monthly audits, and strict anti-money laundering compliance. The move is expected to accelerate the adoption of stablecoins across the financial system and ignite a wave of corporate and institutional innovation.
President Trump is delivering on his promise to MAKE AMERICA THE CRYPTO CAPITAL OF THE WORLD. 🚀🇺🇸
The GENIUS Act protects consumers in the digital market, ensures U.S. dollar global reserve currency status, and combats illicit digital asset activity. pic.twitter.com/u4fPASyWre
— The White House (@WhiteHouse) July 19, 2025
A New Financial Frontier
The GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins, grants the Office of the Comptroller of the Currency (OCC) oversight over nonbank stablecoin issuers with more than $10 billion in assets, while smaller issuers fall under state jurisdiction. The Federal Reserve will also play a role in supervising systemically important stablecoin operations.
Comptroller of the Currency Jonathan Gould praised the development, saying in a statement, “The OCC is prepared to work swiftly to implement this landmark legislation that expands the authority of the OCC to include nonbank payment stablecoin issuers.”
The law bans interest payments on stablecoins and prohibits members of Congress and their families from profiting from them, though critics note this restriction does not apply to Trump or his family, a carveout that briefly stalled the bill in the spring.
Circle (NYSE: CRCL), issuer of USDC, and Robinhood (NASDAQ: HOOD), which recently added stablecoin services, saw their stocks move higher ahead of the signing. Coinbase (NASDAQ: COIN), which also gained ground, has been one of the most vocal backers of the bill.
Wall Street Embraces Stablecoins
Wall Street titans wasted no time reacting. JPMorgan Chase (NYSE: JPM) and Citigroup (NYSE: C) announced plans to expand their stablecoin operations. JPMorgan CEO Jamie Dimon, long skeptical of crypto, has now embraced stablecoins as a competitive necessity.
“We’re going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it,” Dimon said earlier this week.
Meanwhile, speculation swirls around the potential for megacaps like Amazon (NASDAQ: AMZN), Walmart (NYSE: WMT), and even Tesla (NASDAQ: TSLA) to explore issuing their own stablecoins. The new framework opens the door for companies outside the financial sector to enter the payments space, potentially threatening the dominance of traditional card networks such as Visa (NYSE: V) and Mastercard (NYSE: MA).
BlackRock (NYSE: BLK), which recently expanded its crypto ETF offerings, also stands to benefit. BlackRock’s iShares Bitcoin Trust ETF (NASDAQ: IBIT) and iShares Ethereum Trust ETF (NASDAQ: ETHA) remain key vehicles for institutional exposure. ETHA notably saw record inflows this week, outperforming bitcoin ETFs for the first time.
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Bitcoin, Ethereum React to Washington Shake-Up
Market reactions were mixed on Friday. Bitcoin (BTCUSD) traded around $117,300, slipping from a Monday high near $123,100. Ethereum (ETHUSD), however, continued to shine, gaining 2% to close near $3,530, capping a 43% two-week surge—its best stretch since 2021.
“No coin seems to have more momentum than Ethereum of late,” Wolfe Research’s Read Harvey wrote this week. He pointed to ETH’s recent performance relative to BTC as a sign of a possible trend reversal in crypto market leadership.
Bitmine Immersion (NYSE American: BMNR), a smaller Ethereum-focused stock, added 1% on the day, while bitcoin miners like MARA Holdings (NASDAQ: MARA) saw profit-taking after recent gains.
Strategy (NASDAQ: MSTR), the bitcoin-treasury giant formerly known as MicroStrategy, fell 6.2% following Thursday’s decline. Despite this, the stock remains near the top of a bullish chart pattern.
A Milestone for the Crypto Industry
The GENIUS Act represents the first time Congress has passed, and a president has signed, crypto-focused legislation into law. And the symbolism matters.
“This is the biggest deal in crypto so far this year,” said Noelle Acheson, economist and author of the Crypto is Macro Now newsletter. “It’s the first crypto-focused law in the history of the United States, home to the largest financial market in the world.”
Trump echoed those sentiments during the signing ceremony. “The entire crypto community, for years, you were mocked and dismissed and counted out… but this signing is a massive validation of your hard work and your pioneering spirit,” he said.
With two more bills, the CLARITY Act and the Anti-CBDC Surveillance State Act, now heading to the Senate, Washington’s crypto agenda is far from over. But with the GENIUS Act now law, a clear regulatory foundation has been laid.
And that, investors believe, changes everything.
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