President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law on Friday, marking the United States' first formal step toward regulating digital assets.

The legislation focuses on defining and overseeing stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term issuers and is seen as a foundation for broader crypto regulation efforts.

The bill passed the House with a 308-122 bipartisan majority and cleared the Senate earlier with a 68-30 vote. Senior Republicans and several top executives from the crypto sector attended Fridays signing ceremony at the White House.

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With the GENIUS Act now law, implementation responsibilities shift to federal financial and banking regulators. These agencies will define which entities qualify to issue stablecoins, a market currently led by firms such as Tether and Circle, though Wall Street institutions have shown growing interest.