U.S. Senate Passes GENIUS Act, Trump Urges House to Swiftly Approve Stablecoin Regulation

U.S. President Donald Trump has emerged as a vocal advocate for the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, urging the House of Representatives to swiftly pass the legislation following its Senate approval on June 17 with a 68-30 bipartisan vote. In a Truth Social post, Trump hailed the bill as “pure GENIUS,” calling for House lawmakers to send it to his desk “LIGHTNING FAST” to cement America’s leadership in digital assets. As the bill advances to the House, Trump’s enthusiastic endorsement underscores his administration’s pro-crypto agenda, though concerns about conflicts of interest tied to his stablecoin ventures have sparked debate.

Trump’s Call to Action

Trump’s push for the GENIUS Act reflects his broader vision to position the U.S. as the “undisputed leader” in cryptocurrency innovation. Late Wednesday, he emphasized the bill’s urgency, stating on Truth Social, “Get it to my desk, ASAP — NO DELAYS, NO ADD ONS.” His remarks followed the Senate’s passage of the legislation, which establishes a federal framework for stablecoins—digital currencies pegged to assets like the U.S. dollar, such as Tether (USDT) and USD Coin (USDC). Trump has framed the bill as a critical step to boost economic growth, projecting that stablecoins could grow into a $3.7 trillion market by 2030, according to Treasury Secretary Scott Bessent’s estimates.

The President’s advocacy aligns with his administration’s crypto-friendly stance, with White House advisor David Sacks, Trump’s crypto czar, previously stating the bill would “pass with significant bipartisan support.” Trump has also suggested the legislation promotes the U.S. dollar, with Vice President J.D. Vance echoing that stablecoins are “no threat” but an opportunity to enhance the dollar’s global role.

The GENIUS Act: What It Means for Stablecoins

The GENIUS Act introduces strict requirements for stablecoin issuers, mandating reserves backed by liquid assets like U.S. dollars or Treasury bills and monthly transparency disclosures. With stablecoins commanding a $251.75 billion market—led by USDT ($156.49 billion market cap) and USDC ($61.19 billion) as of June 18—the bill aims to mitigate risks seen in past crises, like the 2022 TerraUSD collapse. It also seeks to drive demand for U.S. Treasuries, reinforcing the dollar’s dominance in digital finance.

The market responded positively, with USDC issuer Circle seeing its stock price surge 33% during trading on June 18 following the Senate’s passage of the GENIUS Act. After President Trump urged the House to pass the bill, Circle’s stock continued to climb in after-hours trading, reaching $211.87, up 6.15% as of press time.

Controversy Surrounding Trump’s Involvement

Trump’s enthusiasm for the GENIUS Act has drawn scrutiny due to his ties to World Liberty Financial, which issued the USD1 stablecoin in March. Critics, including Senator Elizabeth Warren (D-MA), highlight a $2 billion Binance investment from an Abu Dhabi fund using USD1, noting the stablecoin’s trade volume surged 1000% since May. Warren has criticized the bill’s lack of anti-corruption measures extending to the president, arguing it could enable Trump to profit from his crypto ventures. The GENIUS Act, passed by the Senate, does not include restrictions on senior officials like Trump or their families participating in stablecoin businesses, raising concerns.

House Outlook and Challenges

The House, with its slim Republican majority, faces pressure to act before the July recess. Trump’s call for a “clean” bill suggests resistance to amendments, but Democrats like Warren advocate for stronger anti-corruption provisions and foreign issuer restrictions. These political divisions may further complicate negotiations.

Additionally, merging the GENIUS Act with the House’s STABLE Act or a broader crypto bill could also delay passage.