In a stunning reversal, Donald Trump backs the Genius Act, legalizing stablecoins in the U.S. and establishing a clear regulatory framework for the crypto industry.
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| The Genius Act, backed by Trump, legalizes stablecoins in the U.S. and marks a historic shift in crypto policy, with promises of innovation and regulatory clarity. Image: CH |
Washington, US — July 25, 2025:
The United States has officially legalized cryptocurrency under a new law known as the National Cryptocurrency Bill, or the "Genius Act." Once a vocal critic of digital assets—calling them a “scam of the future”—former President Donald Trump has now thrown his support behind the crypto industry, marking a dramatic reversal that helped push the legislation through Congress. The bill introduces a regulatory framework for stablecoins, tying their value directly to secure government assets like the U.S. dollar.
The act mandates that every issued stablecoin must be backed 1:1 by either U.S. dollars or equivalent government-held assets. This backing ensures a stable value, making these digital currencies more reliable for transactions and investments. The legislation is designed to address long-standing concerns over volatility and security in the crypto space.
Trump’s endorsement of the Genius Act marks a dramatic reversal from his earlier anti-crypto stance. Now a vocal supporter of digital innovation, he has aligned himself with blockchain-based financial firms such as World Liberty Financial, gaining electoral support from crypto advocates in return.
“Stablecoins are the future of American financial innovation,” Trump reportedly said in a closed-door meeting with industry leaders earlier this year. “It’s time to bring clarity and leadership to the digital economy.”
The Genius Act provides long-requested legal recognition and oversight to stablecoins, giving the crypto industry a much-needed layer of legitimacy. By offering a clear regulatory pathway, the bill is expected to boost investor confidence, improve security, and streamline cross-border transactions.
Traders and developers now have a regulated environment to build faster, more affordable financial services using blockchain technology. The move positions the U.S. as a leader in next-generation digital finance.
Not all reactions have been positive. Financial experts and consumer watchdogs have warned that the law could blur the lines between tech firms and banking institutions, potentially introducing systemic risks. Tech giants entering the financial sector without bank-level oversight could raise security, privacy, and competition concerns.
Despite this, the bill’s supporters view it as a step toward modernizing the U.S. financial ecosystem, especially as other countries race ahead with central bank digital currencies (CBDCs) and blockchain integration.
The Genius Act reflects a broader transformation in Washington’s attitude toward digital assets. What was once dismissed is now regulated, legitimized, and potentially central to the future of U.S. finance.
With Trump now among its most high-profile champions, the crypto industry has gained powerful momentum—and stablecoins are poised to lead America’s digital finance revolution.