Trump Pushes GENIUS Act to Center Stage
In a late evening post on June 18th, former President Donald J. Trump delivered a forceful call to action: pass the GENIUS Act in the House without delays or amendments. Celebrating the bill’s Senate approval, Trump hailed it as “an incredible Bill” that would establish the U.S. as the “UNDISPUTED Leader in Digital Assets.”
“Nobody will do it better, it is pure GENIUS,” Trump wrote, urging Congress to deliver a clean bill to his desk “ASAP — NO DELAYS, NO ADD ONS.”
His words echo and amplify growing sentiment among pro-crypto legislators that the GENIUS Act represents not just regulatory reform but a strategic national investment in digital finance.
🏛️ What’s in Play: GENIUS Act Recap
The GENIUS Act, short for “Guiding Emerging National Innovations for Uniform Standards”, is a bipartisan initiative aimed at:
Establishing a federal framework for stablecoin issuance
Clarifying roles of the Federal Reserve and state-chartered institutions
Encouraging private sector innovation while protecting consumers
Preventing fragmentation by offering clear preemption language
🏃 Next Steps: Lightning Fast or Legislative Quagmire?
With Trump's public nudge, House Republicans are expected to prioritize a floor vote, possibly within days. But not all House members are aligned. Key Democrats are seeking addenda related to systemic risk and FDIC protections, while some progressives remain skeptical of language perceived to enable large financial institutions to dominate the stablecoin market.
Important to note that FDIC coverage is essential for traditional bank deposits due to the inherent risks of the fractional reserve model, where only a portion of funds are held in reserve, exposing depositors to potential losses in a crisis. In contrast, fully regulated stablecoins backed 1:1 by U.S. Treasuries do not require FDIC insurance, as they are not reliant on rehypothecation or lending and maintain full asset backing at all times.
Nonetheless, Trump’s “NO ADD ONS” demand raises the political stakes. His framing casts any modifications as delays to American leadership in digital assets, putting pressure on House members to move swiftly—or face public scrutiny from a highly vocal base.
🧩 Advisory Takeaway: Implications for Legal Strategy
If passed cleanly, the GENIUS Act would deliver:
Regulatory clarity for stablecoin issuers
A credible framework for state-federal coordination
Predictable pathways for compliance—key for institutional onboarding
It’s time to consider how this evolving regulatory posture impacts banks and business and start a positioning, product design, and jurisdictional strategy. The message is clear: Washington is taking stablecoins seriously—and fast.
📢 Watch This Space
With high-level political backing and fast-tracked momentum, stablecoin regulation is no longer a theoretical debate—it’s becoming real law, real soon. We will continue monitoring House developments and industry responses. #StablecoinSummer