In recent days the cryptocurrency market has seen a major boost and a lot of it is linked to one surprising reason former U.S. President Donald Trump. His open support for a new bill called the GENIUS Act has caused crypto-related stocks like Coinbase and Circle to rise sharply. But what is the GENIUS Act? Why is Trump supporting it? And what does this mean for the future of cryptocurrency and stablecoins?
What is the GENIUS Act?
The GENIUS Act stands for “Guaranteeing the Evolution and National Integration of the Use of Stablecoins.” This is a proposed law in the United States that aims to bring stablecoins into the traditional financial system.
Stablecoins are a type of cryptocurrency that are pegged to real-world currencies like the U.S. dollar. This means their value does not go up and down wildly like Bitcoin or Ethereum. They are meant to be “stable” and easier to use for everyday payments, loans and saving.
The GENIUS Act wants to regulate stablecoins so that they can be trusted and used like regular money — in banks, for online shopping and even for paying bills.
Trump’s Endorsement Sparks Excitement
Donald Trump recently came out in full support of the GENIUS Act, calling it a smart step toward making America a leader in financial innovation. This came as a surprise to many as Trump had once called Bitcoin a scam. But now things seem to have changed.
Trump said in a speech “America should lead in digital finance not fall behind. The GENIUS Act will make that happen.”
His support has given a strong political push to the bill which still needs to be approved by the House of Representatives before it becomes law.
Crypto Stocks Surge
As soon as Trump gave his support to the GENIUS Act crypto-related companies saw a rise in their stock prices. Let’s take a look at two of the most important ones:
- Coinbase, a major U.S. crypto exchange, saw its stock rise by more than 7% in one day.
- Circle, the company behind the stablecoin USDC, also saw a sharp increase in its valuation. The company is even planning for an initial public offering (IPO) later this year which is now gaining more attention.
Investors are betting that if the GENIUS Act becomes law these companies will benefit the most since they already deal heavily in stablecoins.
What Makes the GENIUS Act Special?
The GENIUS Act is different from earlier crypto regulations because it focuses on integration rather than restriction. Here are a few key points:
- Stablecoin Backing: It requires all stablecoins to be backed 1:1 by real money or short-term U.S. Treasury bonds.
- Federal Oversight: It puts the U.S. Federal Reserve and other regulators in charge of monitoring stablecoin issuers.
- Bank Participation: It allows licensed banks and financial institutions to issue stablecoins, making them part of the legal banking system.
- Consumer Protection: It includes strong consumer safety rules to prevent fraud or misuse of funds.
These points aim to build trust among both regular users and big investors.
Why Stablecoins Matter
While cryptocurrencies like Bitcoin and Ethereum are great for investment they are too volatile for daily use. Their prices can change dramatically in a few hours. Stablecoins fix that problem by staying steady in value.
They can be used for:
- Sending money across borders cheaply
- Making online purchases
- Paying employees in international companies
- Holding savings in digital form
Governments around the world including India and Europe are exploring digital currencies. If the U.S. passes the GENIUS Act it would show the world that America is serious about the future of finance.
What’s Next?
Even though the GENIUS Act has gained attention and support it is not a law yet. It still needs to:
- Be approved by the House of Representatives
- Be passed by the Senate
- Be signed by the President
This process could take several weeks or even months. But Trump’s support could speed things up, especially with elections coming in 2025 and crypto being a hot topic among younger voters and tech investors.
Critics Are Still Concerned
Not everyone is cheering. Some financial experts and politicians worry that:
- Stablecoins might hurt the U.S. dollar if misused.
- Hackers and fraudsters could find loopholes.
- Big tech companies might gain too much financial power.
However supporters say regulation is better than banning. By setting clear rules, the government can keep things safe while allowing innovation to grow.
Conclusion
The crypto market is once again in the spotlight this time not because of wild price changes but due to policy changes. The GENIUS Act — and Donald Trump’s surprise support — have given hope to those who believe in digital finance.
If the bill becomes law stablecoins like USDC might soon be used like regular dollars — in banks in shopping and even in salaries. This could bring crypto closer to everyday people.
For now the market is watching closely. And as history shows, in crypto anything can happen — and usually does.