Expanded Access to Cryptocurrencies During the Trump Administration

Expanded Access to Cryptocurrencies During the Trump Administration

United States Takes Strides in Crypto Regulation with the GENIUS Act

In a significant move towards cryptocurrency regulation, the GENIUS Act has been signed into law on July 18, 2025. This comprehensive federal regulatory framework specifically targets payment stablecoins, marking a landmark shift in the US digital asset landscape.

The GENIUS Act, or the Guiding and Establishing National Innovation for U.S. Stablecoins Act (S. 1582), establishes a licensing and supervisory structure involving the U.S. Treasury and banking regulators. Issuers of stablecoins will be required to comply with operational, compliance, and anti-money-laundering (AML) requirements tailored to the business model and risks of payment stablecoin issuers.

The Act mandates compliance with existing AML standards, such as the Bank Secrecy Act, adapted for blockchain technology. It also directs regulators to seek public input on innovative AML tools such as APIs, AI, and blockchain monitoring technologies.

The GENIUS Act aims to foster innovation while reducing consumer risks by formally recognizing stablecoins and setting out federal and state supervision. The Act is set to take effect either 18 months after enactment or 120 days after federal agencies issue implementing regulations.

In parallel, during the same Congressional session known as "Crypto Week" (mid-July 2025), the House passed two additional key bills:

1. The CLARITY Act of 2025 (H.R. 3633) aims to establish a comprehensive regulatory market structure for a broader range of digital assets beyond just stablecoins, striving for regulatory clarity across the digital asset ecosystem.
2. The Anti-CBDC Surveillance State Act (H.R. 1919) seeks to prevent the federal government from issuing a national Central Bank Digital Currency (CBDC), addressing concerns about privacy and surveillance associated with a government-controlled digital dollar.

These bills reflect Congressional efforts to further clarify digital asset regulation and address broader policy concerns like privacy and the potential risks of a government-issued digital currency.

As the regulatory environment moves towards more structured federal oversight, the implementation details and their impact will become clearer as regulatory agencies finalize rules ahead of the 2027 effective dates. The GENIUS Act, CLARITY Act, and Anti-CBDC Surveillance State Act are significant steps in resolving regulatory ambiguity in the US digital asset landscape.

Stablecoins, a form of tokenized digital money that use blockchain technology and are designed to maintain a stable value, typically pegged to conventional fiat currencies like the U.S. dollar, are primarily used for payments, remittances, and liquidity in crypto trading and lending platforms. They could pose a new form of competition to financial products like bank deposits and money market funds, and the demand for stablecoins is projected to create a substantial new source of demand for U.S. Treasury securities and other safe assets, depending on their adoption outside of the crypto industry.

As more banks launch their own stablecoins to counter this competition, understanding the regulatory landscape is crucial for investors and businesses alike. The Kiplinger Letter, a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, serves as a valuable resource to help understand investments and money matters in the evolving cryptocurrency market.

Despite these regulatory advancements, fraud remains a big issue in the crypto industry, even as ownership becomes more common. Lack of understanding remains the primary reason most people don't hold crypto, and many people are still skeptical of the industry due to past scams, fraud, and stolen funds. The White House's new crypto framework seeks to address these concerns and move the industry into the mainstream, attracting new investors and accelerating growth in the industry.

The Trump administration is also rolling back some regulatory enforcement on cryptocurrency, as part of the White House's strategy to push for landmark legislation to create a permanent, clear market structure for cryptocurrency. The administration aims to make the United States the "crypto capital of the world."

In conclusion, the regulatory environment for stablecoins and digital assets is evolving rapidly in the United States. The GENIUS Act, CLARITY Act, and Anti-CBDC Surveillance State Act represent significant steps towards providing clarity and structure to the industry, fostering innovation, and protecting consumers. As the industry continues to grow and mature, it is essential to stay informed about regulatory developments to make informed investment decisions.

1. The GENIUS Act, signed into law in July 2025, establishes a licensing and supervisory structure for payment stablecoins, targeting this sector within the broader cryptocurrency landscape.
2. Issuers of stablecoins will be required to comply with operational, compliance, and anti-money-laundering (AML) requirements, tailored to their business models and risks, under the imposing framework of the GENIUS Act.
3. The CLARITY Act of 2025, passed in the same Congressional session, aims to bring regulatory clarity across the digital asset ecosystem by establishing a comprehensive regulatory market structure for a broader range of digital assets beyond just stablecoins.
4. Recognizing the potential risks and privacy concerns associated with a government-issued digital currency, the Anti-CBDC Surveillance State Act aims to prevent the federal government from issuing a Central Bank Digital Currency (CBDC).
5. In the evolving cryptocurrency market, resources like The Kiplinger Letter can help investors and businesses understand the regulatory landscape and make informed investment decisions as more banks jump into the stablecoin arena.
6. Fraud remains a significant issue in the crypto industry, but the White House's new crypto framework seeks to address these concerns, pushing the industry into the mainstream and attracting new investors to the industry.

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