Revolution in crypto law: GENIUS law paves the way for stablecoins!

Revolution in crypto law: GENIUS law paves the way for stablecoins!

On July 20, 2025, Crypto Week will conclude with a groundbreaking regulatory success. The US Congress has passed the GENIUS Act, which is considered the most significant legislation regulating stablecoins. This law aims to create a clear legal framework for developers, investors and institutions in the digital assets sector. President Donald Trump signed the bill into law at the White House, overcoming some opposition within his party that arose during this crucial week.

The GENIUS Act, in full as Guiding And Establishing National Innovation for U.S. Known as stablecoins, it was passed by a vote of 308 to 222 in the House of Representatives. This represents a fundamental shift in regulation, recognizing that not all cryptocurrencies need to be classified as securities. Industry experts emphasize that this is just the beginning; Leo Fan, co-founder of Cysic, highlights that there is now a need for scalable blockchains and instant verification systems.

Revolutionary changes in crypto law

The GENIUS Act is seen as a catalyst for the permanent presence of DeFi (decentralized finance) in the US. Altan Tutar, CEO of MoreMarkets, notes that the legislation will spur the adoption of stablecoins, particularly through the ability to tokenize traditional assets. The draft law thus creates a first federal framework for stablecoins, which are often tied to the value of the US dollar or another asset.

Ryan Chow, CEO of Solv Protocol, is optimistic about establishing legal foundations for digital assets and ending regulatory uncertainty. He calls the distinction between decentralized digital assets and traditional securities monumental. In this context, Will K, CEO of VOOI, points out that regulation alone is not enough; It requires a sophisticated infrastructure and simplified user experiences.

Criticism and resistance

Despite this progress, there was also resistance during the passage of the GENIUS Act. Thirteen Republicans, including Anna Paulina Luna, Scott Perry and Marjorie Taylor Greene, initially blocked the legislation. Rep. Steve Scalise changed his vote to “no” to reintroduce the legislation later. The vote did not go smoothly in the face of a conservative revolt, and negotiations dragged on until Wednesday evening.

In addition to the GENIUS Act, the House of Representatives also passed the Digital Asset Market Clarity Act of 2025 and the Anti-Central Bank Digital Currency (CBDC) Act, which divides regulatory jurisdiction over digital assets between the Commodity Futures Trading Commission and the Securities and Exchange Commission. The Anti-CBDC Act prohibits the Federal Reserve from issuing a central bank digital currency. This exposes the complexities and challenges associated with introducing such legislation.

In summary, the passage of the GENIUS Act represents an important step in the regulation of cryptocurrencies, while also setting the direction for future developments in the digital asset space. Industry experts agree that while this regulatory clarity brings progress, it also creates challenges for small investors as it primarily benefits institutional investors.

For more details about these significant advances in cryptocurrency regulation, you can read the articles from TradingView and Forbes read.