Lawmakers anticipate swift approval of the US Genius Act for stablecoins within a ten-day period
The U.S. has taken a significant step forward in crypto regulation with the enactment of the Genius Act. Signed into law by President Donald Trump on July 18, 2025, the Genius Act establishes a federal-state dual regulatory framework for payment stablecoin issuers, marking a historic moment in the industry's development [1][2][3][5].
The Genius Act: Key Points
- The Genius Act, now law, requires federal and state regulators to issue implementing regulations within one year of enactment [5].
- The effective date of the Act, which prohibits unauthorized issuance of payment stablecoins, is estimated to be in November 2026 or earlier if regulators finalize rules sooner [1][5].
- This transition period allows market participants to comply with the new licensing, supervisory, and enforcement regime [1][5].
Related Bills and Their Status
Alongside the Genius Act, the House also passed the Digital Asset Market Clarity Act (CLARITY Act) and the Anti-CBDC Surveillance State Act during "Crypto Week" in July 2025 [2][4].
- The CLARITY Act, focused on digital asset market structure, is currently under Senate consideration, with bipartisan support [2][4]. It is expected to face negotiations with competing Senate frameworks being developed by the Agriculture and Banking Committees [4].
- The Anti-CBDC Surveillance State Act, designed to restrict the Federal Reserve from issuing a central bank digital currency, is now in the Senate for consideration [2].
Senator Gillibrand's Stance
Senator Kirsten Gillibrand has been at the forefront of the crypto discussions, discussing the progress of the Genius Act with Senator Cynthia Lummis. Gillibrand believes that President Trump's issuance of a memecoin is illegal based on current law and a violation of the emoluments clause [6]. She also stated that if President Trump or a family member chooses to participate in the crypto industry, they are obligated to follow all the same rules as any other participant [7].
Looking Ahead
Congressman French Hill expects both the stablecoin and financial market infrastructure bills to be ready for the President's signature before the August recess. Despite the politics surrounding President Trump's memecoin and crypto investments, constructive members from both sides of the aisle are working to find consensus [8].
The Genius Act has been given strong bipartisan support, and Senator Lummis emphasized the need for a clear regulatory structure in the United States for the crypto industry to onshore it and help the dollar remain the world's reserve currency [9]. Senator Gillibrand, with her legal background, has been instrumental in refining the Genius Act, focusing on consumer protection, bankruptcy protection, and ethics [10].
In summary, the Genius Act's enactment marks a significant step in U.S. crypto regulation, laying a clear regulatory foundation for stablecoins and digital asset market structure [2][3][4]. The CLARITY Act and Anti-CBDC Surveillance State Act await Senate action, with their timelines dependent on ongoing legislative negotiations [2][4].
- The Genius Act, now a law, requires both federal and state regulators to issue implementing regulations within a year, marking a significant step in the stablecoin industry's development under finance and legal frameworks.
- Senator Kirsten Gillibrand, with her legal background, has been instrumental in refining the Genius Act, focusing on consumer protection, bankruptcy protection, and ethics within the retail sector.
- In the general news, Congressman French Hill anticipates both the stablecoin and financial market infrastructure bills to be ready for the President's signature before the August recess, despite the ongoing politics surrounding cryptocurrencies.
- Senator Lummis emphasized the need for a clear regulatory structure in the United States for the crypto industry to onshore it and help the dollar remain the world's reserve currency, as it faces competition from other countries in business and politics.
- The CLARITY Act, focused on digital asset market structure, is currently under Senate consideration, with bipartisan support, yet it is expected to face negotiations with competing Senate frameworks being developed by the Agriculture and Banking Committees, impacting the overall industry's stability.
