The United States House of Representatives has passed a bill on stablecoins, which will be signed into law by Trump.

On July 17th, local time, the U.S. House of Representatives passed the “Guide and Establishment of the National Innovation Act for US Stabilized Currency” (referred to as the “Genius Act”) with a vote of 308 in favor and 122 against. This bill aims to make significant legislative reforms on cryptocurrency regulation. The bill will be submitted to President Trump, who is expected to sign it into law.
The Genius Act will establish regulatory frameworks for stablecoins that are pegged to the dollar, widely seen as beneficial for strengthening consumer protection and enhancing the legality of the cryptocurrency industry. Stablecoins are virtual assets designed to maintain a relatively stable value against certain assets (usually currencies, primarily the dollar).
The Genius Act requires stablecoin issuers to comply with anti-money laundering regulations and hold sufficient reserves.
According to Reuters on the 6th, once more mainstream, cryptocurrencies could impact the U.S. bond market. The Genius Act would require tokens to be supported by liquid assets such as the dollar or U.S. government short-term bonds, and require issuers to disclose their reserve details monthly. This means issuers must purchase more U.S. government short-term bonds.
U.S. Treasury Secretary Scott M. Barrett previously encouraged Congress members to pass the bill, reasoning that it might stimulate demand for U.S. government bonds in the market.
Market institutions estimate that after the Genius Act is approved, the stablecoin market size is expected to expand to $2 trillion by 2028. Currently, the stablecoin market size is around $250 billion.
Additionally, the House passed the second broader cryptocurrency market structure bill, the “Clarity Act,” with a vote of 294 in favor and 134 against on the same day. This bill will be submitted to the Senate for review. The proposal aims to establish a more extensive and industry-friendly regulatory framework for digital assets.
Patrick McHenry, former Chairman of the House Financial Services Committee and Vice Chairman of Ondo Finance, a cryptocurrency company, stated that these bills would have “epoch-making effects,” making the United States the center of the digital asset world. However, Democrats criticized the bill for not restricting the cryptocurrency interests of the Trump family.