Trump’s Push for Cryptocurrency Regulation in 2024 Campaign

President Donald Trump is highlighting advancements in cryptocurrency regulation as a central aspect of his 2024 campaign. Shortly after taking office, he issued a Presidential Order that encourages the federal government to adopt policies aimed at strengthening U.S. leadership in digital assets while ensuring economic freedom.

This executive order has led Congress to swiftly advance the first segment of federal cryptocurrency legislation, set for approval in 2025. A recent example is the recently passed Genius Act, which marks the initial federal regulation focusing on stablecoins.

Richard Teng, CEO of Binance, remarked in a recent post on X that “the Genius Act represents what the crypto industry has long needed: a clear and comprehensive regulatory framework for stablecoins,” suggesting it lays the groundwork for broader acceptance of digital currencies.

Overview of the Genius Act

After passing through both the Senate and the House of Representatives with strong bipartisan support, President Trump signed the National Innovation Guidelines on July 18, 2025. This law introduces the US Stablecoins (Genius) Act.

Genius Law, notable as the first federal cryptocurrency law in U.S. history, sets out significant regulations. The bill mandates that U.S. stablecoin issuers register with federal or state regulators and undergo regular audits, with provisions going into effect next year.

It also requires stablecoin issuers to maintain 100% reserves, which was requested by the issuers themselves. By introducing standardized rules for the creation and management of stablecoins, the law aims to provide “regulatory clarity” in this segment of the cryptocurrency market.

Some critics might say the law favors larger stablecoin issuers over smaller, more innovative ones. However, it could ultimately benefit established firms like USD Coin (USDC) and PayPal, which has introduced its own stablecoin, PayPal USD (PYUSD). This legislation is expected to facilitate the increased use of stablecoins in mainstream finance.

Benefits of Faster Transactions

For those who aren’t heavily invested in the crypto market—especially in stablecoins—you might be asking why the Genius Act is such a significant development. After all, stablecoins are largely pegged to established currencies like the U.S. dollar and might seem just an alternative to traditional methods.

While stablecoins may appear as a complex solution for everyday transactions, they do offer a compelling advantage. These crypto-based alternatives, particularly for international transactions, promise faster processing times and lower fees.

A great illustration of this is PayPal’s newly launched Crypto platform, which allows merchants to transfer funds at a cost significantly lower—around 90% less—than traditional international credit card processing.

This platform enables users to receive cryptocurrency as payment and quickly convert those earnings into cash or fiat currency. Beyond just cost savings, the ability to accept crypto payments could open broader marketplaces for both merchants and consumers.

Implications for Stablecoin Adoption

It’s a bit unclear, but PayPal appears to be aligning its crypto initiatives with the Genius Act’s passage. The government’s regulatory framework seems to set the stage for more institutional participation in this sector, similar to how traditional financial services operate.

Initially, fintech companies like PayPal may lead the charge, but eventually, established banks might also join this space. Since stablecoins tend to be less volatile than other cryptocurrencies like Bitcoin or Ether, businesses and consumers may start incorporating them into everyday transactions due to their speed and cost benefits.

This increased usage, though it might not directly spike value, could create a pathway for more traditional cryptocurrencies’ acceptance. Overall, this influx of capital could positively influence market prices.

In essence, the Genius Act not only signifies the start of “regulatory clarity” for cryptocurrency in the U.S. but might also herald the onset of a new wave of cryptocurrency adoption globally.