The U.S. House of Representatives passed sweeping legislation aimed at regulating stablecoins, cryptocurrency’s version of cash, marking a significant win for the cryptocurrency industry and paving the way for traditional banks to expand into digital assets.

The bill, known as the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, cleared the House with broad bipartisan support after clearing the Senate. It now heads to President Donald Trump, who is expected to sign it into law on Friday. Trump actively lobbied Republican lawmakers to back the legislation.

Market analysts at Citigroup estimate the stablecoin sector, currently valued at $265 billion, could grow to $3.7 trillion by 2030. Supporters say the legislation offers faster, more cost-efficient payments and much-needed legitimacy for the growing market.

The GENIUS Act establishes a federal regulatory framework for stablecoins—digital currencies pegged to the U.S. dollar or other fiat currencies—requiring issuers to fully back tokens with liquid assets like cash or Treasury securities. It also imposes anti–money-laundering compliance and mandates regular transparency disclosures. 

This legislation is part of a broader regulatory agenda dubbed “Crypto Week” by President Trump. Earlier in the day, the House passed sweeping crypto market reforms still awaiting Senate approval.

The bill’s passage sparked a positive market response. Shares in crypto-linked companies surged, while major banks such as JPMorgan’s Jamie Dimon, Citigroup, and Bank of America described the move as a potential threat to the banking industry’s grip on payments and signaled readiness to launch stablecoin services under the new rules.

Advocates say the GENIUS Act positions the U.S. as a global leader in digital finance and delivers long-awaited regulatory certainty. Critics, however, argue the bill falls short on consumer protections and have raised concerns about the influence of private interests, including reported connections between the Trump family and certain crypto ventures.

Despite the debate, the legislation marks the first comprehensive federal effort to regulate dollar-based digital assets.