On July 18, 2025, President Donald Trump signed the GENIUS Act (Global Exchange for Non-U.S. Issuers of Unregistered Stablecoins Act) into law, establishing the first federal regulatory framework for dollar-backed stablecoins. The legislation creates clear guidelines for foreign stablecoin issuers operating in the U.S., requiring registration while enhancing consumer protections and financial stability measures.
Trump declared during the White House signing ceremony: 'I pledged that we would make the United States the crypto capital of the world... The Genius Act creates a clear framework to unleash the promise of dollar-backed stablecoins.' The bill received bipartisan Congressional support and was attended by major crypto industry leaders.
Concurrently, Tether CEO Paolo Ardoino announced the company's commitment to comply with the new regulations, aiming to transition USDT from its current de facto presence to formal recognition in the U.S. market. Ardoino emphasized this strategic move would enhance institutional trust, expand accessibility through U.S.-based exchanges and financial platforms, and potentially set a compliance precedent for other stablecoin issuers.
Industry analysts anticipate the GENIUS Act will accelerate institutional investment in stablecoins, boost market liquidity, and establish foundational regulations for future digital asset legislation affecting broader cryptocurrency markets including Bitcoin and Ethereum.