Donald Trump is expected to sign the GENIUS Act into law Friday, securing his first big win as a self-described "pro-crypto president." The act is the first major piece of cryptocurrency legislation passed in the US.
The House of Representatives voted to pass the GENIUS Act on Thursday, approving the same bill that the Senate passed last month. The law provides a federal framework for stablecoins, a form of cryptocurrency that's considered less volatile than other cryptocurrencies, as each token is backed by the US dollar or other supposedly low-risk assets.
The GENIUS Act is expected to spur more widespread adoption of cryptocurrencies, since stablecoins are often used to move funds between different tokens. It could become a gateway for many Americans who are otherwise shy about investing in cryptocurrencies, which is what the industry wants. Ahead of Thursday's vote, critics had warned that Republicans were rushing the pro-industry bill without ensuring adequate consumer protections, though, seemingly setting Americans up to embrace stablecoins as legitimate so-called "cash of the blockchain" without actually insuring their investments.
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It's "Crypto Week" in Congress, and experts continue to warn that legislation Donald Trump wants passed quickly could give the president ample opportunities to grift while leaving Americans more vulnerable to scams and financial ruin.
Perhaps most controversial of the bills is the one that's closest to reaching Trump's desk, the GENIUS Act, which creates a framework for banks and private companies to issue stablecoins. After passing in the Senate last month, the House of Representatives is hoping to hold a vote as soon as Thursday, insiders told Politico.
Stablecoins are often hyped as a more reliable form of cryptocurrency, considered the "cash of the blockchain" because their value can be pegged to the US dollar, Delicia Hand, Consumer Reports' senior director monitoring digital marketplaces, told Ars.
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Critics have long warned that Donald Trump's pro-cryptocurrency push as president, coupled with his links to his family's growing crypto empire, creates substantial conflicts of interest that must be probed.
But so far, nothing has stopped Trump's family from seemingly benefiting from the presidency while expanding their empire. And now, Trump is rushing regulation through Congress that many Democrats fear could create his biggest conflict of interest yet.
On Tuesday, the Senate passed the GENIUS Act, a bill that will regulate stablecoins in the US, establishing guardrails and consumer protections that may spur wider crypto adoption nationwide. Unlike more volatile forms of cryptocurrency—like Trump's controversial memecoin—stablecoins' value can be pegged to the US dollar. The crypto industry is hoping the House of Representatives will quickly send the bill to Trump's desk, which Trump has demanded happen by August.
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