President Trump Signs Landmark GENIUS Act, Ushering in Stablecoin Oversight

Download IPFS

In a historic move for the digital asset sector, U.S. President Donald Trump signed the GENIUS Act into law on Friday, July 18, 2025. The legislation formally titled the “Guaranteeing Enforcement of Nationwide Innovation and Uniform Standards Act” (GENIUS) represents the first comprehensive legal framework for regulating stablecoins in the United States, a critical step toward formalising cryptocurrency’s role in modern finance.

The signing ceremony, held at the White House, was attended by a mix of lawmakers, regulatory officials, and executives from across the crypto and fintech industries. The roughly hour-long event signals a shift in Washington’s approach to digital assets, one that focuses on clear rules, financial stability, and technological leadership rather than reactionary crackdowns or piecemeal policies.

Stablecoins, digital tokens typically pegged to traditional currencies like the U.S. dollar, have become a foundational part of the crypto economy, enabling instant, borderless transfers and forming the backbone of many decentralised finance (DeFi) applications. Yet until now, they have operated in something of a legal grey zone. The GENIUS Act sets out uniform standards for issuance, reserves, and reporting, aiming to bring stability to a fast-growing corner of the financial system.

President Trump emphasised the importance of embracing innovation while protecting American consumers and maintaining the country’s financial leadership. “This law ensures that American companies can lead the world in digital currency development, while keeping our financial system safe, sound, and secure,” he said during the ceremony.

The Act garnered bipartisan support in both chambers of Congress, a rare feat in today’s political climate, and was praised by leading voices in the crypto space. Many see it as a much-needed foundation that could pave the way for broader digital asset legislation in the years to come. With this signing, the United States became one of the first major economies to establish clear legal ground rules for stablecoins, offering regulatory clarity and likely encouraging further institutional adoption.

The GENIUS Act could also be a key factor in attracting fintech innovation and capital investment back to U.S. shores, especially at a time when other global financial hubs are competing to become leaders in blockchain-based finance.

While challenges remain in regulating the broader crypto ecosystem, the GENIUS Act marks a decisive step forward in establishing a responsible and competitive digital finance landscape.

Defence Signals Possible Mistrial in Tornado Cash Case Over Disputed Scam Evidence

Lawyers for Roman Storm, a developer of the crypto privacy protocol Tornado Cash, are weighing a motion for mistrial following revelations that key evidence presented by the prosecution may be flawed. At issue is testimony from a self-described scam victim who claimed her stolen funds were laundered through Tornado Cash, a claim now strongly disputed by multiple blockchain analysts.

The case centres around Hanfeng Ling, a Georgia resident originally from Taiwan, who testified that she lost $250,000 to a so-called “pig butchering” scam, a long-term fraud tactic that builds fake relationships to extract funds. Ling told the jury that after the scam, she and her husband hired a crypto recovery firm named Payback, which claimed to have traced part of the stolen money to Tornado Cash. Her email to the service’s general address reportedly went unanswered, a detail the prosecution used to suggest Storm’s alleged indifference to scam victims.

However, blockchain experts have since cast serious doubt on those claims. Taylor Monahan, founder of MyCrypto and a well-respected analyst in the field, reviewed the chain of transactions over the weekend and found no evidence linking Ling’s funds to Tornado Cash. Monahan traced Ling’s money to a separate 2023 scam involving a fraudulent firm called NTU Capital. According to her, Payback appears to have misread the transaction trail, likely due to the use of instant token swap services, common tools that can obscure fund flow for inexperienced analysts.

Monahan posted a full transaction report and a detailed thread on social media platform X (formerly Twitter), stating bluntly that Ling’s crypto “never touched Tornado.” Her findings were quickly corroborated by other crypto researchers, including the well-known pseudonymous sleuth ZachXBT. “Unfortunately, these predatory firms come up as the first search results on Google when victims look for help,” ZachXBT wrote, criticising the apparent incompetence of the tracing firm involved.

In court, Storm’s defence attorney David Patton, a partner at Hecker Fink LLP, said the defence attempted its tracing over the weekend and likewise found no connection to Tornado Cash. Patton told Judge Katherine Polk Failla that it was reasonable to expect the government to have independently verified Ling’s claim before introducing it as evidence. Shockingly, when questioned, the government’s expert witness, Federal Bureau of Investigation (FBI) Supervisory Special Agent Joel DeCapu, admitted that he had not been asked to trace the flow of Ling’s funds and could not confirm whether they passed through Tornado Cash at all.

This revelation could prove to be a serious procedural issue. Introducing unverified testimony about key evidence, especially in a case hinging on alleged money laundering, risks prejudicing the jury. The defence indicated it is considering a mistrial motion based on the lack of factual foundation behind Ling’s testimony and the failure of prosecutors to confirm critical details through their expert witness.

The Tornado Cash case has already drawn widespread attention across the tech and financial sectors, as it raises questions about personal privacy, open-source software development, and government overreach in regulating decentralised systems. The missteps revealed in this early stage of the trial may well reshape the narrative and possibly the outcome.