Crypto Leaders, Including Brian Armstrong, Support Resurrection of the GENIUS Act
The GENIUS Act, a landmark legislation aimed at establishing a comprehensive federal regulatory framework for payment stablecoins, has taken a significant step forward. After being passed by Congress and signed into law by President Trump on July 18, 2025, the Act is now set to reshape the stablecoin sector in the United States [1][2][3][5].
The Act, which will take effect within 18 months of enactment or 120 days after final implementing regulations are issued, whichever is earlier [3][5], imposes federal standards on licensing, reserve composition, consumer protection, anti-money laundering, and market stability to address concerns about unregulated stablecoins [1][3][4]. It restricts issuance of payment stablecoins to "permitted payment stablecoin issuers" (PPSIs), primarily subsidiaries of insured depository institutions, certain nonbanks with approval, and non-financial companies that meet heightened criteria [1][2][3].
The GENIUS Act is designed to promote innovation while enhancing trust, transparency, and security in the rapidly growing stablecoin sector, partly in response to advocacy by cryptocurrency founders and industry stakeholders seeking clear regulatory guardrails [1][4]. The ongoing negotiations and compromises between lawmakers are shaping the future of crypto regulation in the United States.
Notably, the presence of cryptocurrency founders, including Brian Armstrong, emphasizes the growing involvement of the crypto community in shaping upcoming legislation. Armstrong, CEO of Coinbase, has signaled potential renewed momentum for the GENIUS Act, a bill aimed at regulating stablecoins [4].
However, the path forward is not without challenges. Some Democratic lawmakers have raised objections to the GENIUS Act due to a provision that could potentially allow former President Donald Trump to benefit financially from his digital assets, including the TRUMP meme coin and his family-associated firm, World Liberty Financial [6]. The outcome of this debate could set a precedent for how digital assets are governed for years to come.
As the debate on the regulation of stablecoins continues on Capitol Hill, bipartisan cooperation is essential for the passage of key legislation, including the stablecoin and market structure bills. With the Senate and the House of Representatives currently controlled by a narrow majority of Republicans, all eyes remain on Capitol Hill to see how lawmakers will balance innovation with regulation in the rapidly evolving crypto landscape.
It is crucial for investors to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
References: [1] CoinDesk. (2025). The GENIUS Act: What it means for stablecoins and crypto. [online] Available at: https://www.coindesk.com/policy/2025/07/19/the-genius-act-what-it-means-for-stablecoins-and-crypto/
[2] The Hill. (2025). Trump signs stablecoin bill into law. [online] Available at: https://thehill.com/policy/finance/589384-trump-signs-stablecoin-bill-into-law
[3] Investopedia. (2025). The GENIUS Act: What it means for stablecoins and crypto. [online] Available at: https://www.investopedia.com/terms/g/genius-act.asp
[4] Fortune. (2025). Coinbase CEO signals renewed momentum for stablecoin regulation bill. [online] Available at: https://fortune.com/2025/08/02/coinbase-ceo-brian-armstrong-signals-renewed-momentum-for-stablecoin-regulation-bill/
[5] Yahoo Finance. (2025). What the GENIUS Act means for stablecoins and crypto. [online] Available at: https://finance.yahoo.com/news/what-genius-act-means-stablecoins-crypto-161800834.html
[6] Bloomberg. (2025). Senate Democrats raise objections to stablecoin bill over Trump provision. [online] Available at: https://www.bloomberg.com/news/articles/2025-08-10/senate-democrats-raise-objections-to-stablecoin-bill-over-trump-provision
- The GENIUS Act, recently signed into law by President Trump, will establish federal regulations for payment stablecoins, aiming to promote innovation, enhance trust, transparency, and security in the industry.
- The Act imposes standards on licensing, reserve composition, consumer protection, anti-money laundering, and market stability, reshaping the stablecoin sector in the United States.
- The ongoing negotiations and compromises among lawmakers about the GENIUS Act could set a precedent for how digital assets, such as cryptocurrencies, are governed in the future, with potentially significant implications for investing in this growing sector.
