The U.S. just made history with its first big cryptocurrency law, a huge win for an industry that’s been fighting for legitimacy on Capitol Hill for years. Crypto’s come a long way from its outsider roots, spending millions to sway last year’s elections, including throwing support behind Donald Trump.
This new law, called the Genius Act, sets rules for stablecoins—those cryptocurrencies tied to steady assets like the U.S. dollar to keep their value consistent. The House gave it the green light on Thursday, following the Senate’s approval last month, and Trump’s expected to sign it into law today, Friday. It’s one of three crypto bills backed by Trump that are moving through Washington right now.
Trump wasn’t always a crypto fan—he once called it a scam—but his tune changed after getting cozy with the industry, including ties to companies like World Liberty Financial. Supporters of the bill say it’s about giving clear guidelines to a booming sector, helping the U.S. stay competitive in the fast-evolving world of digital payments. The crypto crowd’s been pushing hard for rules like these, hoping they’ll make digital currencies more mainstream by encouraging everyday use.
The law requires stablecoins to be backed one-to-one by dollars or other low-risk assets. These coins, seen as less wild than Bitcoin, are popular for traders moving money between different crypto tokens, and their use has exploded in recent years.
But not everyone’s cheering. Critics warn the law could bring new risks to the financial system, arguing it gives stablecoins a stamp of approval without enough safeguards for users. They’re worried it lets tech companies act like banks without the same strict oversight and leaves consumers vulnerable if a stablecoin company goes bust. Some even tried to tank the bill by pointing out it could indirectly boost Trump’s family business, which has been promoting its own crypto coins.
Still, the bill got surprising support from both sides—about half of Democrats joined most Republicans to pass it. Consumer advocacy groups aren’t happy, though. In a letter to Congress earlier this year, they argued the law could mislead people into thinking stablecoins are safer than they are, setting the stage for trouble down the road.
Originally, analysts thought all three crypto bills would sail through this week, but some last-minute snags slowed things down. The other two bills, which would block the Federal Reserve from creating its own digital currency and set broader rules for crypto, passed the House and are now in the Senate, where Republicans have a slim edge. Meanwhile, Trump’s reportedly working on an executive order that could let retirement accounts invest in things like crypto, gold, and private equity.
Bitcoin’s been on a tear, hitting a new high above $120,000 this week. But some experts, like Terry Haines from Pangaea Policy, think this stablecoin law might be crypto’s only victory for a while. He points out it took years of struggle—and surviving some major industry scandals—to even get this far. “This isn’t much to brag about,” he said, suggesting the bigger crypto battles are still ahead.