U.S. Enacts First Federal Crypto Law — Ushering in the “Golden Age” of Digital Assets

On July 18, 2025, President Donald Trump signed the GENIUS Act—the first-ever comprehensive federal law regulating stablecoins—into law, marking a milestone in U.S. financial legislation .

What the GENIUS Act Includes

1:1 asset backing: All U.S. stablecoins must be fully backed by U.S. dollars or equivalent low-risk assets (e.g., Treasury bills) .

Monthly reserve disclosures: Issuers must publish audited statements to ensure transparency .

Dual regulatory oversight: Introduces federal and state supervision mechanisms, avoiding regulatory arbitrage .

Issuer licensing: Only permitted payment stablecoin issuers (PPSIs)—banks, federally chartered nonbanks, or state-chartered entities—can issue stablecoins domestically .

The law will take effect either 18 months after enactment or 120 days after regulations are issued—whichever comes first. Final rules must be published within one year of passage .

Legislative Context & Related Bills

The GENIUS Act aligns with other blockchain- and crypto-focused measures:

Digital Asset Market Clarity Act: Still awaiting Senate approval; defines which digital assets qualify as securities vs. commodities .

Anti‑CBDC Surveillance State Act: Passed the House; prohibits a retail central bank digital currency, reinforcing market-led innovation .

Together, these laws mark a historic shift toward a comprehensive federal framework for digital assets .

Market Response & Outlook

Crypto market cap topped $4 trillion following the signing .

Bitcoin surged to around $123,000, while Ether rallied ~20% to ~$3,500 .

Payment platforms (e.g., Coinbase, Chainlink, Polygon) and stablecoin-linked entities across valued assets saw broad gains .

Why It Matters: The Dawn of a Digital Golden Age

Institutional confidence: Clear rules and auditability encourage banks, payment systems, and investment firms to enter stablecoin markets.

Dollar-strengthening effect: Widespread adoption of regulated stablecoins could drive demand for U.S. Treasuries .

Global leadership: The U.S. positions itself ahead of the EU’s MiCA framework and Asian regulatory counterparts .

Illicit finance safeguards: AML and sanctions measures are embedded in the law to curb misuse .

While supporters applaud the “golden age of digital assets,” critics caution against loopholes, Big Tech favoritism, and ethics concerns related to the Trump family’s crypto ventures .

What’s Next?

Implementation phase begins: Agencies and states must draft final regulations within a year.

CLARITY Act and Anti‑CBDC bill await full Senate approval.

Market dynamics: Expect increased institutional crypto entry, innovative payment solutions, and heightened regulatory scrutiny ahead.

The GENIUS Act, combined with pending legislation, sets the stage for a more secure, mainstream, and regulated crypto ecosystem in the U.S.—truly heralding the “golden age” of digital assets.