Genius Act stablecoin regulation

Key Points:* U.S. President Donald Trump scheduled to sign the GENIUS Act.

• Establishes a federal regulatory framework for stablecoins.
• Potential ban on high-yield bearing stablecoins. The White House has announced that President Donald Trump is set to sign the GENIUS Act today, July 18, 2025, which will establish a federal framework for regulating stablecoins.

The signing of the GENIUS Act marks a pivotal moment for the crypto industry as it introduces national standards for stablecoin issuance and restricts high-yield stablecoins, influencing market dynamics.

Trump to Sign Landmark Stablecoin Regulation GENIUS Act

President Donald Trump will hold a ceremony at 2:30 PM ET to officially sign the GENIUS Act. Karoline Leavitt, White House Press Secretary, highlighted the President’s initiative, emphasizing his commitment to making the U.S. a leader in crypto. Scott supports House passage of the Genius Act confirmed bipartisan support for the act, which passed the House with significant backing.

The GENIUS Act aims to introduce a federal regulatory framework for stablecoins while banning those with simple, high-yield returns. The framework mandates Fed registration and allows eligible state-chartered entities to issue stablecoins. There is an expansion on retail usability through potential tax exemptions on smaller transactions.

“This piece of legislation is going to make America the crypto capital of the world, and that’s what the president promised,” said Karoline Leavitt, White House Press Secretary.

Market and community responses indicate optimism, especially for Ethereum (ETH), whose price rose 2.6% in afternoon trading. Karoline Leavitt reassured that no central bank digital currency is included in the current legislation, reflecting the administration’s stance, and highlighting the potential for future laws.

Tether Stands Firm as USDT Tops $160 Billion Market Cap

Did you know? The GENIUS Act’s push for national stablecoin regulation marks a significant first in U.S. legislation, contrasting earlier non-specific regulatory efforts.

As of July 18, 2025, according to CoinMarketCap, Tether USDt (USDT) has maintained a stable price of $1.00 with a market cap of 160.37 billion dollars. The 24-hour trading volume hit 145.26 billion dollars, reflecting a 7.74% change, while the circulating supply reached 160.26 billion.

Tether USDt(USDT), daily chart, screenshot on CoinMarketCap at 00:12 UTC on July 18, 2025. Source: CoinMarketCap The Coincu research team highlights that the GENIUS Act may drive increased institutional confidence and expanded stablecoin use. This legislation could create new financial dynamics, potentially shifting liquidity patterns, especially if competing yield-bearing stablecoins are affected. Analysts anticipate further regulatory developments in crypto.

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