US House passes GENIUS Act, ends crypto's outlaw days

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The US House of Representatives has passed the GENIUS Act, a landmark piece of legislation establishing federal oversight for stablecoins, with a decisive 279–141 vote. 

The bill, already passed in the Senate, all but needs to be signed into a law by President Donald Trump. It marks the United States' first comprehensive crypto legislation—and a turning point for digital currencies long operating in a legal grey zone.

The act directly targets stablecoins like USDC and USDT, which are pegged to the US dollar and widely used for cross-border payments, crypto trading, and instant digital settlements. 

For the first time, the federal government will require stablecoin issuers to hold one-to-one reserves in cash or US Treasury bills, disclose holdings monthly, and give consumer claims priority in case of bankruptcy. The law also establishes a dual regulatory path involving both federal and state oversight.

This legal foundation could help pull crypto out of its volatile, speculative phase and into the financial mainstream. 

By clearly defining reserve standards and enforcement mechanisms, the GENIUS Act is designed to boost institutional trust, protect users, and make stablecoins viable for everyday use—whether for rent payments, business transactions, or international remittances.

In doing so, the US sends a message of intent in the global race to shape the future of digital finance. While China pushes its state-backed digital yuan, America is now putting a regulatory framework behind private-sector innovation.

Tech and finance giants including PayPal, Visa, and BlackRock—all of which are experimenting with blockchain infrastructure—now have legal certainty to scale their crypto operations. Supporters argue this could unlock a wave of innovation in programmable finance and cross-border commerce.

Until now, lack of regulation had spooked traditional banks, slowed adoption, and exposed consumers to risks. Critics often dismissed crypto as a "tech bro fad," but the GENIUS Act acknowledges the emergence of a new, faster, and transparent financial infrastructure quietly taking shape behind the scenes.

India's Crypto Paradox

India, meanwhile, continues to walk a cautious and often contradictory path. Though it has not banned cryptocurrencies outright, it has imposed a punitive 30 per cent tax on crypto trading profits, with no provision for offsetting losses. The move, introduced in 2022, effectively stifled retail participation and discouraged legitimate use.

All the same, the Indian government has rolled out its own central bank digital currency (CBDC), the digital rupee, positioning it as a controlled alternative to decentralised assets. Yet, the digital rupee has struggled to gain traction, even as citizens continue to engage with stablecoins and crypto assets through informal channels.

Unlike the GENIUS Act, India currently lacks a dedicated legal framework to define, regulate, or support stablecoins or private digital currencies—leaving innovation in limbo and pushing much of the sector into regulatory uncertainty.