US passes first major national crypto legislation

The United States has passed its first major national legislation regulating cryptocurrencies, marking a turning point for an industry that has long operated in a regulatory gray area.

On July 17, 2025, the U.S. House of Representatives approved the GENIUS Act, a bill that establishes a federal regulatory framework for stablecoins—cryptocurrency tokens pegged to the U.S. dollar and designed to maintain a stable value. The legislation was supported by both Republicans and Democrats, reflecting growing bipartisan recognition of the need for clear rules in this rapidly expanding sector.

The GENIUS Act is now on President Donald Trump’s desk, and he has pledged to sign it into law, making it the first significant piece of federal crypto regulation in U.S. history. The law will require stablecoin issuers to back their tokens with liquid assets such as cash and short-term Treasury bills and to publicly disclose their reserve compositions monthly.

Issuers must also comply with U.S. anti-money-laundering and sanctions regulations. These requirements aim to increase transparency, bolster consumer protection, and reduce risks to financial stability—though critics, including some Democratic senators, argue that the bill lacks sufficient safeguards in these areas.

The passage of the GENIUS Act followed days after a group of conservative Republicans initially blocked the bill over concerns about the potential creation of a central bank digital currency.

The impasse was resolved only after negotiations involving President Trump and House GOP leadership, resulting in a compromise that would tie a ban on a central bank digital currency to a separate defense bill later in 2025.

Industry advocates and major crypto firms—long the target of enforcement actions by the Securities and Exchange Commission (SEC)—welcomed the legislation, seeing it as a move toward clearer, more favorable regulation.

In addition to the stablecoin bill, the House also approved the Clarity Act, which proposes broader cryptocurrency market regulation. The Clarity Act is now headed to the Senate for further consideration.

As these legislative developments unfolded, the price of Bitcoin surged to a record $120,000, reflecting heightened investor optimism and President Trump’s publicly stated ambition to make the U.S. the global leader in digital assets.

The passage of the GENIUS Act is viewed as a milestone that could further integrate cryptocurrencies into mainstream finance, but it is just the beginning of what is expected to be a broader regulatory push affecting the entire digital asset ecosystem.

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