The US has taken its first significant step towards regulating cryptocurrencies, as Congress approved the country’s first major crypt legislation in a historic vote earlier this week. The bill, known as the Genius Act, sets new rules for stablecoins and paves the way for future regulations.
The overall market valuation of cryptocurrencies surged to $4 trillion after the vote, reflecting the excitement and anticipation among the sector. President Trump signed the bill into law on Friday, marking a major victory for crypto advocates who believe digital currencies represent the future of finance.
However, critics argue that the rules are too weak and have been influenced by heavy lobbying from the crypto industry. They fear that the lack of adequate protections could lead to financial disaster and exacerbate problems in the current payment system.
The Genius Act establishes anti-money laundering rules and mandates stablecoin companies maintain proper reserves. It also sets the stage for more laws to come, including the CLARITY Act, which aims to hand policing power from the Securities and Exchange Commission to a smaller regulatory body.
Industry players believe stablecoins will revolutionize commerce by allowing instant money transfers anywhere in the world without expensive bank fees. However, critics warn that this could lead to uncontrolled experimentation on the financial system with little oversight.
Despite criticism, crypto advocates are confident about their future prospects, thanks in part to President Trump’s backing and significant campaign donations from the industry. The next target for the crypto sector is now the CLARITY Act, which they believe will further cement America’s position as a leading player in global finance.
Source: https://www.npr.org/2025/07/19/nx-s1-5470007/crypto-economy-trump-genius-clarity-act