U.S. lawmakers have passed the country’s first major national cryptocurrency legislation, a landmark moment for the digital asset industry after years of lobbying and political spending.
The bill, known as the Genius Act, establishes a federal regulatory framework for stablecoins a type of cryptocurrency pegged to reliable assets, such as the U.S. dollar. It marks a significant shift in Washington’s approach to crypto and is expected to be signed into law by President Donald Trump on Friday.
The House passed the bill Thursday, following Senate approval last month. It is one of three crypto-related bills making progress in Congress and is notably backed by Trump, who has increasingly aligned himself with the industry. Though once a vocal critic of cryptocurrencies, Trump’s stance shifted after forming business ties with crypto-linked firms such as World Liberty Financial.
Supporters of the bill say it will provide long-awaited clarity and oversight to the fast-growing crypto sector, potentially paving the way for wider adoption. Stablecoins, which are designed to be less volatile than traditional cryptocurrencies like Bitcoin, are commonly used to transfer funds between tokens and exchanges.
Under the new legislation, stablecoin issuers must back their coins one-for-one with U.S. dollars or similarly secure assets. This provision aims to reduce the risk of collapses that have plagued the industry in recent years and bolster confidence in digital payment systems.
Critics Sound Alarm Over Consumer Protections
Despite bipartisan support with roughly half of House Democrats joining the Republican majority the bill has drawn sharp criticism from consumer advocacy groups. Opponents argue the legislation legitimizes stablecoins without implementing robust consumer protections or clear legal safeguards in the event of company bankruptcies.
“Some members may believe passage of this bill, even with flaws, is better than the status quo,” a coalition of advocacy organizations wrote in a letter to Congress. “We believe this is a fundamental misunderstanding of the risks involved with these instruments.”
They warned that the bill could mislead consumers into believing stablecoins are as safe as government-backed financial products and allow tech firms to act like banks without proper regulation.
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Critics also accused lawmakers of indirectly endorsing Trump’s family-linked crypto ventures by supporting the bill. Nonetheless, the legislation’s passage signals a rare moment of bipartisan agreement in an increasingly divided Congress.
Wider Crypto Push in Washington Faces Uncertainty
The Genius Act is part of a broader legislative push to regulate the digital asset space. Two additional bills one seeking to prevent the U.S. central bank from launching its own digital currency and another establishing oversight for a broader range of cryptocurrencies have passed the House but still face hurdles in the Senate, where Republicans hold a slim majority.
Meanwhile, reports suggest Trump is preparing an executive order that would expand investment options for retirement accounts, potentially including private assets like cryptocurrency, gold, and private equity.
Bitcoin, the world’s leading cryptocurrency, surged past $120,000 this week a new all-time high amid renewed investor optimism and increased political attention.
But some analysts remain skeptical about the long-term legislative momentum. Terry Haines of the Washington-based Pangaea Policy noted the years-long struggle to pass even the stablecoin bill.
“This is the end of crypto’s wins for quite a while and the only one,” Haines wrote. “When the easy part, stablecoin, takes 4 to 5 years and barely survives industry scandals, it’s not much to crow about.”
