Trump Signs Major Cryptocurrency Bill

On Friday, President Trump signed a significant piece of legislation regarding cryptocurrency, marking an important development for the industry, which has found reliable support in his administration.

He hailed the bill, stating it sets up a regulatory framework for digital tokens backed by the dollar, known as Stablecoins, and described it as a major move toward reinforcing America’s leadership in global finance and cryptocurrency technology.

“This could maybe be the biggest revolution in financial technology since the Internet began,” he remarked at a signing ceremony attended by Congress members and industry leaders.

The journey for the Stablecoin Bill to reach this point has been long and, at times, challenging.

After successfully passing through the Senate Banking Committee earlier this year, it faced hurdles in May.

Negotiations that followed led to a revised version of the bill, gaining support from various factions in Congress.

Despite beginning the process with a promise for transparency, GOP leaders eventually abandoned conventional procedures due to contentious amendments that risked delays. Ultimately, the Genius Act passed the Senate with a vote of 68 to 30 in late June.

Trump, who has become an important ally for the crypto sector during his second term, encouraged Congress to expedite the passage of “clean” stablecoin bills to reach his desk.

House leaders initially aimed to integrate the Genius Act into a broader cryptocurrency framework; however, they prioritized passing it to maintain momentum for legislation.

Eventually, they decided to present the act alongside two other crypto-related bills during what was labeled “Crypto Week.”

Yet, “Crypto Week” turned out to be more chaotic than anticipated. A group of hardline Republicans blocked a procedural vote on Tuesday, impeding progress and leaving the future of the three bills uncertain.

One of the main complaints from GOP members focused on insufficient clarity regarding measures to restrict Central Banks’ digital currencies (CBDCs).

Among the bills under consideration was the CBDC Oversight National Act, which would prevent the Federal Reserve from issuing CBDCs. Still, it seems unlikely to gather enough support in the Senate.

Later Tuesday, Trump reached an agreement with hardliners to support a procedural vote concerning a third crypto bill, which focuses on regulatory clarity within the digital asset market.

This legislation aims to outline regulatory frameworks, distinguishing the oversight roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission.

Trump reflected on the late-night negotiations to secure the support of hardliners for the bill’s signature.

“I’m tired of calling at 2 or 3 in the morning,” he mentioned, likely referencing the challenges faced during discussions.

However, the deal failed to satisfy all dissenters, resulting in pushback from members of the House Financial Services Committee. Procedural votes were held up for over nine hours, marking a record for extended voting in the House.

Through further negotiations, GOP leaders managed to strike new agreements with various groups, incorporating anti-CBDC provisions into the National Defense Authorization Act (NDAA), raising the chance it could soon reach Trump’s desk.

On Thursday, the House passed the Genius Act by a vote of 308 to 122, with some bipartisan support from Democrats. Interestingly, twelve Republicans, including a few from the hardliner factions, opposed the measure.

Additionally, the Chamber of Commerce passed the Digital Asset Market Clarity Act with a vote of 294 to 134, and the Anti-CBDC Surveillance National Act proceeded through the House with a narrow 218 to 210 margin.

The signing of the Genius Act marks a significant victory for the crypto industry.

“This bill represents a tremendous validation of your hard work and determination, especially since many doubted the industry’s future a few years ago,” Trump told industry leaders after the signing.

Historically, relationships between the crypto sector and the Biden administration were tenuous at best, with former SEC Chair Gary Gensler pursuing numerous enforcement actions against crypto companies, often accused of lacking clear regulations.

Despite having previously labeled cryptocurrency as a “fraud,” Trump embraced the industry during his 2024 campaign, making it a priority upon taking office, appointing David Sack as his advisor on AI and cryptocurrency, and fostering relationships with crypto leaders.

His administration also committed to passing key legislation long sought by the industry: the Stablecoin Bill and the Crypto Market Structure Bill.

Initially, there was hope to pass both before Congress’s August recess, but it became evident that only the Genius Act would move forward in both chambers.

Current expectations from the White House and leading GOP senators target the completion of crypto market structure legislation by the end of September, acknowledging the slower pace of the upper chamber.