First major national crypto legislation passed in US

US lawmakers have passed the country's first major national legislation on cryptocurrency, marking a pivotal shift for the industry after years of lobbying and political engagement.

The new law, known as the Genius Act, establishes a regulatory framework for stablecoins—cryptocurrencies pegged to traditional assets like the US dollar and considered less volatile than Bitcoin or Ethereum. The House passed the bill on Thursday, following Senate approval last month, with former President Donald Trump expected to sign it into law on Friday.

Once skeptical of digital currencies, Trump has since embraced the crypto world, now backed by industry players and connected to firms such as World Liberty Financial. The Genius Act is one of three crypto-related bills gaining traction in Washington, all supported by Trump and part of a broader effort to give the industry more legitimacy.

Supporters say the legislation is a long-overdue step toward clear rules for a rapidly expanding sector and will help keep the US competitive in digital finance innovation. It requires stablecoins to be fully backed by low-risk assets like US dollars, aiming to ensure reliability and reduce financial instability.

Despite bipartisan support—with roughly half of Democrats joining Republicans in passing the bill—critics remain wary. Consumer advocacy groups warn that the law could blur the lines between tech and banking, exposing consumers to risks without proper protections. In a letter to Congress, a coalition of watchdogs argued the law could foster false confidence in crypto assets that may not be as safe as they seem.

The debate also touched political nerves, as some opponents linked the bill to Trump’s personal business dealings and his family’s promotion of crypto coins.

Meanwhile, two other crypto bills are making their way through Congress. One would block the Federal Reserve from launching a central bank digital currency, while the other outlines a broader regulatory structure for digital assets. Both have passed the House and now head to a narrowly Republican-controlled Senate, though analysts predict they face a tougher path.

In the background, speculation is growing that Trump is drafting an executive order that would allow Americans to invest retirement savings in alternative assets like cryptocurrency, gold, and private equity.

While Bitcoin surged to a new all-time high above $120,000 this week, policy analyst Terry Haines offered a dose of skepticism. “If it took nearly five years just to pass a basic stablecoin law, don’t expect more wins any time soon,” he remarked.

For now, the passage of the Genius Act marks a historic moment for crypto in the US—ushering the industry out of its legal gray zone and into a new era of regulated growth.