Quick Read
- President Trump rallied last-minute support for the GENIUS Act after a procedural defeat in the House.
- The bill aims to establish the first federal framework for stablecoins, mandating full reserves and audits.
- GOP infighting and concerns over federal overreach delayed the vote during ‘Crypto Week.’
- The GENIUS Act has bipartisan Senate approval and awaits a critical House vote.
- Critics raise concerns over Trump’s financial ties to the cryptocurrency industry.
The United States Congress is grappling with a pivotal moment in cryptocurrency regulation as the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025) faces its final hurdle in the House of Representatives. On July 15, 2025, President Donald Trump announced that he had secured enough support from House Republicans to push the bill forward, following a surprising procedural defeat earlier in the day. The legislation, which aims to establish the first federal regulatory framework for stablecoins, has become the centerpiece of what lawmakers have dubbed “Crypto Week.”
The GENIUS Act: A Regulatory Milestone
The GENIUS Act is a landmark piece of legislation designed to bring clarity and security to the $238 billion stablecoin market. Stablecoins, digital assets pegged to the U.S. dollar or other fiat currencies, have been a contentious issue in the financial world. The bill mandates full 1:1 backing with U.S. currency or Treasury securities, monthly audits, and dual federal-state oversight. Only federally approved entities, such as insured banks and qualified nonbank issuers, would be authorized to issue stablecoins under this framework. Companies with over $10 billion in circulation would face mandatory federal oversight, ensuring heightened consumer protection.
Senate Banking Committee Chairman Tim Scott (R-SC) lauded the bill, calling it a “bold step forward” for financial innovation and consumer protection. Senator Bill Hagerty (R-TN), the lead sponsor, emphasized that the GENIUS Act would modernize the payments system and solidify the U.S. dollar’s dominance globally. The legislation passed the Senate on June 17, 2025, with a bipartisan 68-30 vote, underscoring its broad appeal.
GOP Resistance and Internal Turmoil
Despite its bipartisan success in the Senate, the GENIUS Act faced unexpected resistance in the House. A procedural vote on July 15 failed 196-223, as 13 conservative Republicans, including Representatives Marjorie Taylor Greene and Andy Biggs, opposed the rule. These lawmakers expressed concerns over federal overreach and the absence of a ban on central bank digital currencies (CBDCs). Greene remarked on social media, “I just voted NO on the Rule for the GENIUS Act because it does not include a ban on central bank digital currency and because Speaker Johnson did not allow us to submit amendments.”
The defeat disrupted plans for “Crypto Week,” which also included debates on the CLARITY Act and the Anti-CBDC Surveillance State Act. Speaker of the House Mike Johnson (R-LA), a staunch supporter of the GENIUS Act, was forced to delay proceedings. According to Brave New Coin, Johnson indicated that another vote would take place the following day to salvage the legislative package.
Trump’s Role and Financial Interests
President Trump has been a vocal advocate for the GENIUS Act, framing it as a critical step toward making the United States the global leader in digital assets. On Truth Social, he posted, “Happy Crypto Week! The House will soon VOTE on a tremendous Bill to Make America the UNDISPUTED, NUMBER ONE LEADER in Digital Assets – Nobody does it better!”
However, Trump’s financial ties to the cryptocurrency industry have raised eyebrows. According to PBS, Trump earned at least $57 million in 2024 from crypto ventures, including World Liberty Financial. Critics, including Senator Elizabeth Warren, have highlighted potential conflicts of interest, arguing that the bill lacks sufficient safeguards to prevent corruption at the presidential level.
Market and Industry Reactions
The GENIUS Act has had immediate ripple effects on the cryptocurrency market. Bitcoin, Ethereum, and XRP experienced brief declines following the initial House vote but stabilized after Trump’s assurances of renewed support. According to Finance Yahoo, Ethereum outperformed Bitcoin in recent days as analysts speculated that the bill’s provisions could restrict yield-bearing stablecoins, potentially benefiting decentralized finance (DeFi) platforms.
Major corporations such as Amazon and Walmart are reportedly preparing to launch their own stablecoins, anticipating the regulatory clarity the GENIUS Act would bring. Treasury Secretary Scott Bessent has projected that the stablecoin market could grow to $3.7 trillion by 2030 under the new framework.
What Lies Ahead
The GENIUS Act now awaits a critical vote in the House. If passed, it will proceed to President Trump’s desk for his signature, marking the first major federal cryptocurrency regulation in U.S. history. Supporters argue that the legislation will enhance consumer protections, foster innovation, and solidify the United States’ leadership in the digital asset space. Detractors, however, continue to voice concerns over federal overreach and the potential for conflicts of interest.
As the House prepares for its final vote, the GENIUS Act represents both a historic opportunity and a contentious battleground in the evolving landscape of digital finance.