WASHINGTON, D.C. (WENY News) — A new law is putting cryptocurrency on the map in Washington — and President Trump is all-in.
On Friday, Trump signed the “Genius Act” — the first major federal law focused on cryptocurrency, something he and his family have taken a strong interest in lately.
There’s been a mad dash on Capitol Hill to get this legislation, and other similar bills, across the finish line. Lawmakers say the Genius Act is just one critical component of a broader effort to regulate cryptocurrency in the United States.
“This is really a big day. This afternoon, we take a giant step to cement American dominance of global finance and crypto technology,” President Trump said Friday.
Some crypto experts agree with the president’s take on the new law.
“Incredibly historic piece of legislation,” said Jennifer Schulp, director of financial regulation studies at the Cato Institute’s Center for Monetary and Financial Alternatives.
Schulp says the new law creates a federal regulatory framework for stablecoins — one of the more accessible parts of the cryptocurrency industry and different from more volatile coins like Bitcoin or Ethereum.
“They’re crypto coins, but they’re supposed to keep a stable value and, for instance, track the dollar. That’s a big opening for regular people to start in the crypto space,” she said. “Bitcoin’s price can fluctuate quite a bit. There’s no top, there’s no bottom. It really just flows with supply and demand. Stablecoins, on the other hand, are meant to track another currency. Most stablecoins track the U.S. dollar, and one U.S. dollar-based stablecoin is supposed to be equal to $1.”
Schulp added that the U.S. was falling behind as other countries race to regulate and benefit from crypto.
“The U.S. was starting to lose a competitive edge for this type of digital technology — and the developers that would go toward it. Moving quickly now helps to bolster the U.S. position in that space and hopefully keep this type of financial innovation both onshore for the developers and available for Americans to use,” said Schulp.
Lawmakers who helped craft the bill agree. Congressman Glenn “GT” Thompson (R-Pa.) was one of them.
“It’s estimated to be about $3 trillion of economic activity. Unfortunately, the government was behind — the United States did not have a regulatory regime that would be designed to protect consumers, number one, but number two, foster innovation, blockchain technology — all things that will strongly benefit, I think, everyday Americans,” Thompson said. “We have secured an exciting future for the United States of America.”
“The United States of America was a leader with ‘Web 1.0,’ which was the internet of knowledge, ‘Web 2.0,’ which is the internet of things. And this is literally the internet of value,” Thompson added.
The bill passed the House Thursday with support from both Republicans and Democrats after the Senate passed it in June- also with bipartisan support.
“This bill will empower American businesses and consumers and enable them to take advantage of the next iteration of financial innovation,” said Sen. Kirsten Gillibrand (D-N.Y.) in a press release after House passage last week. “A result of serious bipartisan negotiations, the GENIUS Act will protect consumers, enable responsible innovation, and safeguard the dominance of the U.S. dollar. This bill targets illicit finance, places limitations on Big Tech, puts in place ethical guardrails, and strengthens national security. The GENIUS Act is landmark legislation that will help maintain American global competitiveness, now and into the future.”
However, some critics say the law doesn’t do enough to protect consumers, the economy, or national security. They’re also concerned it could let big companies act like banks — without following bank rules — which could lead to major risks and taxpayer bailouts down the line.
President Trump has also faced criticism for pushing to pass the legislation, given his family’s recent involvement in the crypto industry — which includes launching a meme coin, starting a Bitcoin mining business and developing a crypto reserve.
The White House says there are no conflicts of interest in those ventures, because the president’s assets are in a trust managed by his children.
“I don’t think so. We obviously did put provisions in place to address ethics,” Rep. Thompson told WENY News when asked whether he was concerned about a conflict of interest for policymakers.
Experts say conflict-of-interest concerns shouldn’t be specific to crypto — pointing out this debate is similar to the ongoing conversation about members of Congress trading stocks.
“I think the question of transparency and conflicts is a much bigger one than cryptocurrency,” Schulp said. “While I think it’s important to look at it in the cryptocurrency context as well, this isn’t a topic that should be tackled on a crypto-specific basis.”
The Genius Act is just one component of a broader cryptocurrency regulation effort by the U.S. government. Thompson says similar legislation — like the Clarity Act — is vital for success.
“It’s like having a cell phone without cell towers. The cell towers, the infrastructure, really comes in the form of the Clarity Act,” Thompson said.
The Clarity Act is still under consideration in the U.S. Senate. A third bill aims to protect the privacy of U.S. citizens.
“Obviously, in the land of freedom and liberty here in the United States, we want to prevent that kind of government surveillance,” Thompson said, after citing examples of China’s surveillance on its citizens to monitor crypto spending habits.
