Fact Sheet: President Donald J. Trump Signs GENIUS Act into Law
Source: The White House
MAKING AMERICA THE LEADER IN DIGITAL ASSETS: Today, President Donald J. Trump signed the GENIUS Act into law, a historic piece of legislation that will pave the way for the United States to lead the global digital currency revolution.
MAKING AMERICA THE LEADER IN DIGITAL ASSETS:
Today, President Donald J. Trump signed the GENIUS Act into law, a historic piece of legislation that will pave the way for the United States to lead the global digital currency revolution.
- The GENIUS Act prioritizes consumer protection, strengthens the U.S. dollar’s reserve currency status, and bolsters our national security.
- The GENIUS Act will make America the undisputed leader in digital assets, bringing massive investment and innovation to our country.
PROTECTING CONSUMERS IN THE DIGITAL MARKET:
President Trump supports the GENIUS Act because it protects consumers from nefarious actors in financial markets.
- This long-overdue legislation creates the first-ever Federal regulatory system for stablecoins, ensuring their stability and trust through strong reserve requirements.
- The GENIUS Act requires 100% reserve backing with liquid assets like U.S. dollars or short-term Treasuries and requires issuers to make monthly, public disclosures of the composition of reserves.
- Stablecoin issuers must comply with strict marketing rules to protect consumers from deceptive practices. Crucially, they are forbidden from making misleading claims that their stablecoins are backed by the U.S. government, federally insured, or legal tender.
- The GENIUS Act aligns State and Federal stablecoin frameworks, ensuring fair and consistent regulation throughout the country.
- In the event of insolvency of a stablecoin issuer, the GENIUS Act prioritizes stablecoin holders’ claims over all other creditors, ensuring a final backstop of consumer protection.
ENSURING U.S. DOLLAR GLOBAL RESERVE CURRENCY STATUS:
By driving demand for U.S. Treasuries, stablecoins will play a crucial role in ensuring the continued global dominance of the U.S. dollar as the world’s reserve currency.
- The GENIUS Act will generate increased demand for U.S. debt and cement the dollar’s status as the global reserve currency by requiring stablecoin issuers to back their assets with Treasuries and U.S. dollars.
- Additionally, the GENIUS Act will play a key role in attracting more digital asset activity to the country by providing clear rules and promoting responsible innovation in the stablecoin market.
COMBATING ILLICIT ACTIVITY IN DIGITAL ASSETS:
Through regulation and registration of stablecoin issuers, along with coordination with the Treasury Department on sanctions enforcement, the GENIUS Act reinforces our national security.
- The GENIUS Act explicitly subjects stablecoin issuers to the Bank Secrecy Act, thereby clearly obligating them to establish effective anti-money laundering and sanctions compliance programs with risk assessments, sanctions list verification, and customer identification.
- This legislation improves the Treasury Department’s ability to combat illicit stablecoin activities by enhancing its sanctions evasion and money laundering enforcement capabilities.
- All stablecoin issuers must possess the technical capability to seize, freeze, or burn payment stablecoins when legally required and must comply with lawful orders to do so.
DELIVERING ON PROMISE TO MAKE AMERICA THE CRYPTO CAPITAL OF THE WORLD:
President Trump is fulfilling his campaign promise to position America as the global leader in cryptocurrency.
- President Trump promised to make the United States the “crypto capital of the world,” emphasizing the need to embrace digital assets to drive economic growth and technological leadership.
- In his first week in office, President Trump signed an Executive Order to promote United States leadership in digital assets.
- In March, President Trump signed an Executive Order to establish a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile, positioning the United States as a leader among nations in government digital asset strategy.
- President Trump has long been a proponent of the GENIUS Act, saying it “is going to make America the UNDISPUTED Leader in Digital Assets — Nobody will do it better, it is pure GENIUS! Digital Assets are the future, and our Nation is going to own it. We are talking about MASSIVE Investment, and Big Innovation. The House will hopefully move LIGHTNING FAST, and pass a ‘clean’ GENIUS Act. Get it to my desk, ASAP — NO DELAYS, NO ADD ONS. This is American Brilliance at its best, and we are going to show the World how to WIN with Digital Assets like never before!”
