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Trump Signs GENIUS Act Into Law, Cementing First Federal Crypto Bill in US History
Historic Win for Stablecoins, U.S. Crypto Industry, and Digital Asset Regulation
In a defining moment for the U.S. digital economy, President Donald Trump has officially signed the GENIUS Act, marking the first federal law regulating stablecoins and delivering a major legislative victory for the crypto industry.
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which creates clear rules for U.S. dollar-backed digital currencies, was signed into law on Friday, July 19, during a high-profile event attended by industry leaders and administration officials.
Crypto-Friendly Policy Becomes Federal Law
After facing initial resistance in the U.S. House earlier in the week, the bill passed on Thursday after Trump secured support from GOP holdouts by linking the GENIUS Act with the Anti-CBDC Surveillance State bill, which will be attached to the National Defense Authorization Act (NDAA).
In his remarks, President Trump called the legislation essential for protecting the U.S. dollar’s global reserve status, comparing a failure to regulate stablecoins with “losing a world war.”
The GENIUS Act now:
- Requires stablecoin issuers to back reserves 1:1 with U.S. dollars or Treasuries
- Limits issuance to regulated financial institutions
- Establishes transparency standards, including monthly reserve disclosures
Massive Institutional Support and Economic Implications
Treasury officials confirmed in briefings that the bill would both clarify digital asset rules and likely increase stablecoin adoption in the U.S. Crypto and AI czar David Sacks claimed it could attract trillions in capital to the American economy.
This comes as the Ripple-issued RLUSD, Circle’s USDC, and other dollar-backed stablecoins stand to benefit from this regulatory green light.
Crypto Industry Celebrates “Crypto Week” Legislative Victories
The signing event drew high-level attendance from across the crypto and tech sectors, including:
- Brian Armstrong (Coinbase CEO)
- Tyler and Cameron Winklevoss (Gemini)
- Executives from Robinhood, Rumble, and other fintech disruptors
Trump acknowledged their efforts during the ceremony, praising their “revolutionary work” in building a decentralized financial future. He went further to describe crypto as “the next great innovation after the internet.”
GENIUS Act Ushers In New Crypto Era Under Trump
This marks the first federal crypto law in U.S. history, signaling a massive shift in Washington’s approach to digital assets. Industry leaders now anticipate further breakthroughs, as the CLARITY Act and Anti-CBDC Surveillance State Act also passed during what has been dubbed “Crypto Week”.
The administration’s shift in tone has already resulted in:
- Executive orders establishing a strategic crypto reserve
- SEC dropping lawsuits against Coinbase, Binance, and Robinhood
- Broad adoption push from regulators and U.S.-based fintech innovators
With this signature, the U.S. now positions itself as a global hub for regulated digital finance, accelerating the mainstream integration of Bitcoin, XRP, stablecoins, and blockchain-based payment rails.
@ Newshounds News™
Source: The Crypto Basic
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US Treasury: “The Dollar Is Coming On-Chain” as GENIUS Act Becomes Law
Treasury Secretary Scott Bessent confirms major blockchain integration for U.S. financial system
Following the historic passage of the GENIUS Act, U.S. Treasury Secretary Scott Bessent announced that the U.S. dollar is officially going on-chain, signaling a major transformation in how the world’s reserve currency will function in the digital era.
The declaration came shortly after President Donald Trump signed the GENIUS Act into law during a White House ceremony, calling it a generational milestone for fintech and stablecoins.
A Blockchain-Based Future for the Dollar
In a public statement on X (formerly Twitter), Secretary Bessent praised the moment as a technological turning point for U.S. finance:
“Blockchain technologies will power the next generation of payments, and the US dollar is coming on-chain.
Thanks to President Trump’s visionary leadership, and Senator Hagerty’s important work in Congress, the GENIUS Act will help cement the US dollar as the global reserve currency for generations to come.”
The GENIUS Act, which now stands as the first federal stablecoin law, mandates:
- 1:1 backing of stablecoins with U.S. dollars or short-term Treasuries
- Monthly transparency reports and annual audits
- Issuance restricted to licensed banks or regulated financial institutions
These standards are designed to integrate stablecoins into the broader banking system, while promoting trust, transparency, and institutional compliance.
Trump Hails GENIUS Act as “Revolution in Financial Technology”
During the GENIUS Act signing ceremony on Friday, President Trump emphasized that the bill represents a paradigm shift for U.S. leadership in the digital economy:
“The GENIUS Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins.
This could be perhaps the greatest revolution in financial technology since the birth of the internet itself.”
The Act is widely seen as the keystone in a broader legislative framework that includes the CLARITY Act (governing crypto assets more broadly) and the Anti-CBDC Surveillance State Act, both of which passed in the House during “Crypto Week.”
Global Implications: On-Chain Dollar vs. BRICS and CBDCs
Bessent’s statement that the dollar is “coming on-chain” signals a U.S. pivot away from centralized CBDC models, favoring private-sector stablecoin innovation under strict oversight.
This move comes amid global developments such as:
- BRICS push for a new reserve currency and blockchain-based trade systems
- Ongoing de-dollarization efforts by countries like Russia, China, and Brazil
- Rising influence of crypto-dollar platforms like RLUSD, USDC, and others that now meet GENIUS Act compliance
By bringing the U.S. dollar onto blockchain rails, the U.S. aims to retain monetary dominance while adapting to new digital financial architectures.
@ Newshounds News™
Source: The Daily Hodl
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GENIUS Act Blocks Big Tech and Wall Street from Dominating Stablecoins, Says Circle Exec
Circle CSO reveals powerful “Libra Clause” that limits tech and bank control of dollar-backed digital currencies
The newly signed GENIUS Act doesn’t just bring stablecoins under U.S. regulation—it also prevents Big Tech and major banks from monopolizing the market, according to Circle’s Chief Strategy Officer Dante Disparte.
Speaking on the Unchained podcast this weekend, Disparte revealed that the law contains what he calls a “Libra clause”—a direct reference to Facebook’s failed Libra project—which ensures that non-bank tech giants must clear strict regulatory and structural hurdles before issuing any U.S. dollar-pegged stablecoin.
The “Libra Clause”: Safeguarding Against Tech Domination
“Any non-bank wanting to mint a stablecoin must create a standalone entity that looks more like Circle and less like a bank,” said Disparte.
These entities would face:
- Structural separation from their parent companies
- Antitrust scrutiny
- Approval from a Treasury-led oversight committee with veto power
Banks Also Restricted from Risk-Based Stablecoin Activity
Traditional banks aren’t exempt either. Under the GENIUS Act:
- Stablecoin operations must exist as legally separate subsidiaries
- These subsidiaries must avoid risk-taking, lending, and leverage
- Issued coins must be fully backed and isolated from the bank’s main balance sheet
Disparte noted that this framework is even more conservative than JPMorgan’s deposit-token proposals, prioritizing consumer protection and dollar stability over profit-seeking ventures.
GENIUS Act: Bipartisan Momentum and Market Clarity
The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act passed with over 300 House votes, including 102 Democrats, cementing strong bipartisan support.
“Crypto is finally getting what it wanted: legitimacy, legal clarity, and a path to compete,” Disparte said.
The bill:
- Preserves state-level regulation for issuers below $10B in assets
- Requires a federal charter for larger stablecoin operators
- Bans interest-bearing stablecoins and unbacked tokens like Terra
- Introduces criminal penalties for false “stable” claims
DeFi Stands to Benefit: From “Stablecoin Summer” to “DeFi Summer”
While the Act’s ban on yield-bearing stablecoins is controversial, analysts believe it may trigger a new wave of DeFi adoption. Without native yield on centralized stablecoins, Ethereum-based protocols offering decentralized interest products may attract institutional and retail capital alike.
“Stablecoin summer may now evolve into DeFi summer,” predicted analysts Nic Puckrin and Christopher Perkins of CoinFund.
For institutional investors—who face fiduciary mandates to seek yield—DeFi becomes the go-to mechanism for passive income, further boosting adoption of decentralized protocols.
Conclusion: GENIUS Act Is a Balancing Act
By limiting both Big Tech’s control and bank risk, the GENIUS Act attempts to foster a secure, competitive, and innovation-friendly environment for the future of U.S. digital finance—anchored by the dollar, but powered by blockchain.
@ Newshounds News™
Source: Cointelegraph
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Brazil–U.S. Trade Conflict Set to Escalate Amid Political Tensions and Retaliation Threats
50% Trump Tariff Spurs Talk of Sanctions, Visa Revocations, and Big Tech Crackdowns
The trade dispute between Brazil and the United States is showing signs of escalation, with both nations now reportedly exploring retaliatory economic and political measures. The conflict stems from President Donald Trump’s 50% tariff on Brazilian imports, effective August 1, and his vocal opposition to the prosecution of former Brazilian President Jair Bolsonaro.
Political Flashpoints Fuel Trade Breakdown
The tension intensified after U.S. Secretary Marco Rubio revoked visas for Brazilian Supreme Federal Court Justice Alexandre de Moraes and other judges involved in Bolsonaro’s trial. Rubio claimed the actions were necessary due to:
“Violations of Brazilians’ basic rights and the direct targeting of Americans.”
The Brazilian government quickly condemned the move, accusing the U.S. of interfering in Brazil’s judicial affairs. President Luiz Inácio Lula da Silva responded firmly:
“Interference by one country in another’s justice system is unacceptable and violates the basic principles of respect and sovereignty between nations.”
Retaliatory Measures on the Horizon
In response, the Lula administration is now considering a suite of retaliatory economic measures, including:
- Reinstating a digital services tax targeting Big Tech platforms—similar to a measure recently reversed in Canada
- Restricting dividend payments by U.S.-based companies operating in Brazil
- Targeted taxation increases on multinational corporations, though legislation may be difficult due to an already-enacted 15% global minimum corporate tax
On the U.S. side, additional tariffs or sanctions could follow if Brazil moves forward with these measures.
High Stakes for $92 Billion Trade Relationship
The stakes are high: bilateral trade between Brazil and the U.S. topped $92 billion in 2024, with the United States maintaining a $7 billion surplus. That trade relationship could be in jeopardy if retaliatory policies are implemented on either side.
While the official line from both governments remains cautious, backchannel communications suggest mutual retaliation is actively being mapped out.
Conclusion: Political Disputes Risk Economic Fallout
The intersection of politics, judicial independence, and global trade is now threatening to unravel one of the Americas’ largest bilateral economic partnerships. As Bolsonaro’s trial proceeds and Trump signals further punitive actions, observers warn that the conflict could spiral into a full-fledged trade war unless diplomacy intervenes.
@ Newshounds News™
Source: Bitcoin News
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