Trump Signs Groundbreaking Crypto Law (GENIUS Act), Calling It a Major Step Forward for Financial Tech. Will Crypto Go Up ?

On Friday, President Donald Trump signed a major new law that reshapes how cryptocurrency is regulated in the U.S. This marks the first big update from Congress on crypto rules and fulfils one of Trump’s campaign promises to support digital asset companies.

The new law, called the GENIUS Act, focuses on stablecoins, a type of cryptocurrency that’s tied to the value of the U.S. dollar to keep it steady. Trump signed the law surrounded by Republican lawmakers and top figures from the crypto industry.

“This could be the biggest breakthrough in financial technology since the Internet was born,” Trump said, praising the role stablecoins could play in modern finance.

He also promised more action ahead, saying he’s ready to approve even bigger crypto laws this year, including a broader bill recently passed by the House of Representatives that aims to organize the entire crypto market more clearly.

The future of stablecoins under the GENIUS Act looks significantly more regulated, structured, and legitimized but also more competitive thus the crypto market will go up further. Here's what we can expect, based on what’s been reported and the typical goals of legislation like this:

A. Clear Legal Framework = More Trust

The GENIUS Act provides a clear set of rules for how stablecoins must operate in the U.S., especially those pegged to the U.S. dollar. This includes:

• Reserve requirements (e.g. how much real cash or assets must back the coin)
• Audit standards
• Transparency obligations

This legal clarity is expected to boost public and institutional confidence, possibly leading to more widespread use of stablecoins in commerce and finance.

B. Mainstream Adoption Could Accelerate

With rules now in place, banks, fintech companies, and even global corporations may feel safer integrating stablecoins into their services — from payment systems to international remittances. Think PayPal, Visa, or Apple Pay with native stablecoin support.

C. Only the Strong Will Survive

The act could weed out unstable or poorly managed stablecoins. Only projects that meet strict standards will be allowed to operate legally, making it harder for fly-by-night operators to survive. This means:

• Fewer, but more reliable stablecoins
• Possibly federal licensing or oversight

More partnerships between traditional banks and crypto firms.

D. Stablecoin Innovation Might Boom

With a green light from regulators, tech and finance companies may begin launching innovative stablecoin-based products:

• Smart contract-based payments
• Tokenized payroll and lending
• Blockchain-based savings accounts

This could even lead to a new wave of DeFi 2.0, driven by regulated stable assets.

E. Global Implications

As the U.S. moves ahead with regulation, other countries may follow, creating a global standard for stablecoin use. This could position the U.S. dollar-backed stablecoins as a default global digital currency, especially in places where the dollar is already in high demand.

Key Risks to Watch:

• Overregulation could stifle smaller startups or innovation.
• Big players (banks, tech giants) may dominate, making it hard for decentralized or grassroots stablecoins to compete.

Privacy and surveillance concerns may increase as more transactions move onto regulated blockchains.

Conclusion:
The GENIUS Act gives stablecoins a more secure future with greater legitimacy, broader adoption, and stronger protections, but the space will likely be dominated by well-funded, compliant players who can meet strict regulatory standards.