What Is the GENIUS Act?
- Julie Hartling
- Jul 22, 2025
- 3 min read
Ugh!: Full name: Guiding and Establishing National Innovation for U.S. Stablecoins Act. It was introduced by Senator Bill Hagerty and became law when Trump signed it on July 18, 2025
Just another way to show they are afraid of change and losing their wealth so, they will continue tosteal from those who can''t have access--the OPPOSITE of the purpose of BITCOIN!
I was buying bitcoin at $400...that would be 2015.
Oh, and has Trump paid his taxes on his crypto earnings like they will make you in America?
♦ Key Provisions
Reserves 1:1 – Stablecoins must be fully backed by liquid U.S. dollars or Treasuries, with strict audits and monthly disclosures Wikipedia+10Investopedia+10Financial Times+10.
No yield-bearing coins – Interest‑paying stablecoins are banned, limiting innovative DeFi models AP News+10Barron's+10Barron's+10.
Federal & State oversight – Dual regulatory structure: federal regulators (like OCC, FDIC, Fed) and state regulators share authority AInvest+1Wikipedia+1.
Consumer protection – Includes anti-money laundering (AML) compliance, ban on misleading marketing (e.g., implying government backing), and prioritization for holders if issuers go bankrupt Reuters+2The White House+2AInvest+2.
Political carve-out – Like Congress members, Trump’s administration can profit from stablecoins—no ban on president/family profits Reuters+15LiveNOW+15AP News+15.
What Trump’s Crypto Play Really Means
1. Mainstreaming Crypto – With Big Banks
The Act invites large banks, credit unions, and regulated non-bank players to issue stablecoins—essentially bringing crypto under the control of traditional financial institutions
This is a far cry from the decentralized, grassroots ethos that powered early crypto.
2. Feeding the Dollar & Govt Power
By requiring backing with Treasuries, the Act funnels crypto flows directly into government debt, reinforcing U.S. dollar dominance—but also intertwining crypto with federal monetary strategy LiveNOWThe White House.
3. Government Surveillance Over Your Money
When regulators can freeze, burn, or seize stablecoins on legal orders, crypto loses its promise of censorship-resistant money kiplinger.com+15The White House+15Investopedia+15.
4. Centralized Crypto Reserve & Control
This complements Trump’s earlier March executive order forming a Strategic Bitcoin Reserve—a government-owned stash of seized crypto, including not just BTC but ETH, SOL, XRP, etc. CoinDesk+3Wikipedia+3The White House+3.
He even set up a Presidential Working Group on Digital Assets, staff changes at the SEC and CFTC, and pardons (!) in crypto, signaling an authoritarian grip on digital finance CoinDeskWikipedia.
This is so bad for crypto. Bigly bad for everyone who was hoping for LESS GOVERNMENT CONTROL RIGHT DONALD!?!??!!
They''ve been buying it up while they''ve been figuring out how to tax regular people more and then they will have to ask the government or the bank for crypto...F off!
So happy I AM NOT American.
Even Canda controls crypto, like wee''re not allowed t otrade and yet I can use my bank account to buy and sell, using Coinsquare...Even coinbase, you need crypto already or a credit card and that is not he best idea--to buy it with credit...we have seen that re-mortgaging story too many times.
🚨 Why Crypto's Born Promises Are at Risk
Crypto Principle | Expert Critique of Trump’s Approach |
Decentralization | Centralizes stablecoin issuance in banks, not communities. |
Privacy & Censorship Resistance | Regulators can freeze or burn tokens. |
Financial Sovereignty | Stablecoins become government tools for dollar & debt control. |
Innovation Freedoms | Yield-bearing models banned. Surveillance prioritized. |
Crypto was meant to be for all, beyond governments and banks. Instead, the Genius Act makes the U.S. Treasury the banker — and you the regulated client.
The Bigger Crypto Stack in Play
Clarity Act: Aims to label crypto as commodity or security (more clarity—but potentially more control) The Verge+3Barron's+3Barron's+3CBS News.
Anti‑CBDC Surveillance State Act: Bars the Fed from creating central bank digital currency—but the Genius Act positions stablecoins as the privately issued alternative regulated by federal/state agencies New York Post+4Barron's+4Investopedia+4.
Final Take: Why This Matters
Trump’s crypto agenda—signing the Genius Act, launching a crypto reserve, revamping regulators—is not about liberating money. It’s about channeling crypto into the same old power systems: governments, banks, regulatory capture.
The ethos of decentralized, peer-driven innovation is being swallowed by bureaucratic structures.
If you care about crypto that empowers individuals, fosters privacy, and avoids central control—you need to see the Genius Act for what it is: a
co-optation.
It’s time to demand real decentralization, user-controlled privacy, and innovation without institutional chokeholds.
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