In a move that sent ripples through financial markets and the political sphere alike, former President Donald Trump has thrown his influential weight behind the controversial but industry-favored GENIUS Act, a bill that would allow private companies to issue stablecoins under a regulatory framework designed to promote innovation while safeguarding the economy. The endorsement, delivered both through Truth Social and a behind-the-scenes blitz of Republican lawmakers, sparked an immediate reaction from the crypto industry and markets alike.

A Sudden Surge in Market Confidence

Within hours of Trump’s public nod to the GENIUS Act, Bitcoin surged to over $119,000—a gain of nearly 5%—while Ethereum rose 3.7% to break past the $3,000 mark for the first time in weeks. Circle, the issuer of the USDC stablecoin and one of the biggest backers of the bill, saw its stock price leap nearly 14% in after-hours trading. Coinbase and Robinhood also experienced modest surges, indicating broader market optimism.

While market watchers attributed part of the price action to technical momentum and recent institutional inflows into ETH ETFs, Trump’s support was seen as the key catalyst.

“This is a policy turning point,” said Sheila Warren, CEO of the Crypto Council for Innovation. “The GENIUS Act now has the public backing of a major political figure, which dramatically shifts the odds for passage.”

What the GENIUS Act Actually Does

Short for “Giving Every Nation Immediate US-dollar Stability,” the GENIUS Act proposes a federal framework for privately issued stablecoins. Under the act, companies like Circle and Paxos could issue U.S. dollar-backed tokens if they meet capital, reserve, and disclosure requirements. The bill would preempt state-level bans and establish national licensing for qualified issuers.

Importantly, the act draws a line between stablecoins and central bank digital currencies (CBDCs), which it explicitly excludes from its provisions. This delineation appears to have been a critical factor in Trump’s decision to support the bill.

A Marriage of Interests: Trump and Crypto

Trump’s evolving stance on cryptocurrency has been a fascinating pivot. Once a vocal critic of Bitcoin and crypto—calling them “based on thin air” in 2019—his position appears to have warmed considerably. In recent months, he has hosted crypto-friendly fundraisers, met with blockchain entrepreneurs, and floated the idea of accepting crypto for campaign donations.

According to insiders familiar with Trump’s conversations on Capitol Hill, he views the GENIUS Act as a way to appeal to young, tech-savvy voters while also aligning with his broader anti-CBDC, pro-business platform. Trump has repeatedly warned that a Federal Reserve-issued digital dollar would represent a new form of government surveillance.

“The Federal Reserve should not be spying on Americans through their money,” Trump said during a closed-door session with GOP lawmakers, according to a leaked transcript. “Stablecoins let the free market compete. That’s what we want.”

Political Chess in Congress

While Trump’s support adds momentum, the bill still faces considerable hurdles. The GENIUS Act is one of three major crypto-related bills in play during what is being dubbed “Crypto Week” in Congress. The others include the CLARITY Act, which aims to define regulatory boundaries between the SEC and CFTC, and the Anti-CBDC Surveillance State Act, which seeks to ban the issuance of a U.S. central bank digital currency.

Earlier in the week, progress on the GENIUS Act appeared to stall when 13 Republicans unexpectedly joined Democrats in requesting more review time. Insiders suggest that Trump’s last-minute lobbying blitz—including one-on-one calls and pressure from pro-crypto PACs—was instrumental in reversing that trajectory.

Representative Tom Emmer (R-MN), a vocal supporter of crypto legislation, told reporters: “President Trump’s backing is a game-changer. I expect we’ll see movement on the floor by next week.”

Industry Reactions

Crypto Twitter lit up with speculation and celebration. Influencers praised the move as a sign of crypto finally achieving mainstream political support.

“When Trump goes crypto, you know it’s time to pay attention,” wrote @CryptoCassandra, a well-known analyst with over 400,000 followers.

Circle CEO Jeremy Allaire issued a statement within hours of the announcement:

“We welcome President Trump’s recognition of the important role stablecoins can play in preserving the global competitiveness of the U.S. dollar.”

Even some skeptics in the regulatory world acknowledged the significance of the moment.

Former SEC Chair Jay Clayton, speaking on Bloomberg TV, said: “This is going to spark real debate in Washington. Whether or not it passes, crypto is now part of the mainstream economic dialogue.”

Critics Sound the Alarm

Not everyone is celebrating. Senators Elizabeth Warren (D-MA) and Sherrod Brown (D-OH) released a joint statement condemning the GENIUS Act, calling it “a gift to shadow banks and fraudsters.” They argue that loosening controls on digital dollar equivalents could erode consumer protections and threaten financial stability.

“We’ve seen what happens when crypto is allowed to self-regulate,” said Warren. “We get fraud, we get scams, and people get hurt.”

Still, the momentum appears to favor passage. With Trump’s blessing, Republicans may see backing the GENIUS Act as politically expedient, especially with 2026 midterms already looming on the horizon.

What Happens Next?

Congress is expected to revisit the GENIUS Act vote later this week, with committee hearings fast-tracked following Trump’s endorsement. Analysts believe the most likely outcome is that the GENIUS Act is separated from the larger crypto bill package and brought to the House floor as a standalone measure.

If passed, the bill would make the U.S. the first major economy to provide a clear, national framework for stablecoins—something both the crypto industry and financial regulators have long been asking for.

A Tectonic Shift

In less than 24 hours, Trump’s calculated move has transformed a long-shot crypto bill into a top-tier legislative priority. Whether or not it passes in its current form, the GENIUS Act now symbolizes the convergence of political power and blockchain innovation.

For the first time, crypto isn’t just a financial tool or a tech trend—it’s a political wedge issue, a campaign strategy, and possibly a pillar of future U.S. economic policy. The market has noticed. Washington has noticed. And the rest of the world is watching.

Stay tuned—this is just the opening move.