The bill, which sets up a regulatory framework for payment stablecoins, reached Trump’s desk after a tumultuous week in the House, in which competing GOP factions revolted over a trio of crypto bills.
The chaos brought the House floor to a standstill and resulted in the longest vote on record in the chamber.
Republican leaders struck a deal late Wednesday night to move forward with consideration of the bills, unfreezing the floor and allowing votes to proceed on Thursday.
The House ultimately voted 308-122 to pass the GENIUS Act, with 102 Democrats joining most Republicans to support the legislation.
Here’s are several key things to know about the newly minted stablecoin law:
‘Seal of approval’ for crypto industry
The signing of the GENIUS Act marks a key milestone for the industry, as the “first step of the U.S. government really regulating cryptocurrency,” said Rob Nolan, a partner at Duane Morris and a member of the law firm’s digital assets and blockchain group.
As the first major digital assets bill to clear Congress and receive the president’s signature, it imbues the industry with new legitimacy.
“It’s a big deal because when you have a law … it essentially gives a Good Housekeeping seal of approval to the industry,” Ian Katz, managing partner at Capital Alpha, told The Hill.
“You now have Congress and the president of the United States signing off on the legitimacy of this industry.”
Broader crypto framework still in the works
While the industry secured a key victory with the GENIUS Act, it represents just one part of the regulatory puzzle for digital assets.
“This is just the first little bite at the apple because it really is a small portion of cryptocurrency assets,” Nolan added.
Stablecoins are just one type of cryptocurrency. They are tied to another asset, like the U.S. dollar, to maintain a more stable price
Congress has yet to pass legislation creating a broader crypto framework. The key issue at hand is how to split up oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Check out the full report at TheHill.com tomorrow morning.
Welcome to The Hill’s Technology newsletter, I’m Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley.
How policy will be impacting the tech sector now and in the future:
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A proposed GOP ban on a central bank digital currency (CBDC) could pump the brakes on grand visions to reshape electronic payment access around the Federal Reserve.
Republican lawmakers pushed the ban through the House on Thursday over concerns the government could use a CBDC to surveil Americans’ financial transactions.
The banking industry has also lobbied against the currency, arguing the public already has sufficient access to easily usable and safe digital money.
“Nobody yet knows whether a CBDC is a good idea or not,” Rep. Jim Himes (D-Conn.), who has pushed for the government to explore a CBDC, said following the House’s vote.
“There is potential for abuse and corruption, but also for extraordinary modernization that could serve unbanked communities, support the primacy of the U.S. dollar, and much more,” he added.
In 2022, the Federal Reserve issued a study of CBDCs that outlined their risks and benefits.
“All options for private digital money, including stablecoins and other cryptocurrencies, require mechanisms to reduce liquidity risk and credit risk. But all these mechanisms are imperfect,” the report notes.
A CBDC, backed with the full faith and credit of the U.S. government, would be the safest possible digital asset. The Fed paper said that a CBDC could make cross-border payments easier and potentially improve access to banking for low-income households.
In 2022, former Federal Reserve Vice Chair Lael Brainard estimated that it would take “a long time” — at least five years, she said — to launch a digital currency if Congress decided to do so.
Fed Chair Jerome Powellsaid in February that the bank would not develop a CBDC under his tenure. His term expires in May 2026.
Privacy is the biggest concern about CBDCs aired by Republican lawmakers. House Majority Whip Tom Emmer (R-Minn.), who led the CBDC ban through the House, said on the floor that a digital dollar would be tantamount to government surveillance.
Crypto Corner is a daily feature focused on digital currency and its outlook in Washington.
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