Donald Trump has called for the swift passage of the GENIUS Act by the U.S. House, emphasizing the urgency of stablecoin regulation to boost crypto market confidence.

This move is pivotal for introducing clear stablecoin regulations, addressing both innovation and security, and has sparked varied responses across political and financial sectors.

The call for action by Trump underscores a significant policy push to clarify the regulatory landscape for stablecoins in the United States. His request aligns with efforts to stabilize the cryptocurrency market, aiming to draw institutional investments.

Prominent policymakers, including Tim Scott, have supported the Senate’s approval of the act, seeing it as a groundbreaking step for financial and consumer protection. Critics like Elizabeth Warren voice caution about potential regulatory loopholes in Trump’s proposed frameworks.

The enactment of the GENIUS Act could shift financial operations, mandating stablecoin issuers to back their assets with U.S. dollars or Treasurys, potentially sparking a wave of market growth and legitimacy. It has been highlighted that this legislative framework might double the U.S. stablecoin market’s value over a decade.

“If implemented, the GENIUS Act is likely to encourage mainstream adoption of digital currencies,” said Christian Catalini, Founder, MIT Cryptoeconomics Lab. “This sets the stage for these assets to go mainstream.”

As the House prepares to vote, the crypto industry watches closely. An approval could lead to significant regulatory clarity and incentivize the U.S. to adopt a more structured approach to digital asset innovation.