The United States has approved its first major piece of cryptocurrency legislation, marking a milestone for the fast-growing sector after years of lobbying in Washington, as reported by BBC.
The Genius Act, passed by the House on Thursday following Senate approval last month, sets federal rules for stablecoins, cryptocurrencies backed by assets such as the U.S. dollar to maintain a steady value. The bill requires stablecoins to be fully backed by cash or other low-risk assets and aims to bring the market under clearer regulatory oversight.
President Donald Trump, once a vocal critic of crypto, is expected to sign the bill into law on Friday. His administration has supported the measure alongside two other crypto-related bills still moving through Congress.
Supporters say the legislation will provide regulatory certainty, boost innovation, and help the U.S. keep pace with global payment technology trends. Stablecoin use has surged in recent years, particularly among crypto traders seeking lower volatility when moving funds.
Critics, however, warn that the law could embed new risks into the financial system by legitimising stablecoins without adequate consumer protections. Advocacy groups have cautioned that tech firms could engage in bank-like activities without equivalent oversight, potentially leaving customers exposed in the event of a collapse.
The other two bills backed by Trump, one blocking a U.S. central bank digital currency and another creating a wider regulatory framework for cryptocurrencies, face a tougher path in the Senate.
The legislative breakthrough comes as Bitcoin hit a new all-time high this week, surpassing $120K.
Richard Teng, CEO of Binance, talks to Kursiv Uzbekistan How America’s new regulatory approach could balance innovation with oversight and reclaim its leadership in the global crypto market.
