Technology — What to know as the GENIUS Act becomes law

View Online Technology Technology The Big Story  What to know as the GENIUS Act becomes law President Trump signed the GENIUS Act into law Friday, enacting the first major cryptocurrency legislation. © AP Photo/Alex Brandon The bill, which sets up a regulatory framework for payment stablecoins, reached Trump's desk after a tumultuous week in the House, in which competing GOP factions revolted over a trio of crypto bills.    The chaos brought the House floor to a standstill and resulted in the longest vote on record in the chamber.   Republican leaders struck a deal late Wednesday night to move forward with consideration of the bills, unfreezing the floor and allowing votes to proceed on Thursday.    The House ultimately voted 308-122 to pass the GENIUS Act, with 102 Democrats joining most Republicans to support the legislation.     Here's are several key things to know about the newly minted stablecoin law:    'Seal of approval' for crypto industry    The signing of the GENIUS Act marks a key milestone for the industry, as the "first step of the U.S. government really regulating cryptocurrency," said Rob Nolan, a partner at Duane Morris and a member of the law firm's digital assets and blockchain group.    As the first major digital assets bill to clear Congress and receive the president's signature, it imbues the industry with new legitimacy.    "It's a big deal because when you have a law … it essentially gives a Good Housekeeping seal of approval to the industry," Ian Katz, managing partner at Capital Alpha, told The Hill.   "You now have Congress and the president of the United States signing off on the legitimacy of this industry."    Broader crypto framework still in the works    While the industry secured a key victory with the GENIUS Act, it represents just one part of the regulatory puzzle for digital assets.    "This is just the first little bite at the apple because it really is a small portion of cryptocurrency assets," Nolan added.    Stablecoins are just one type of cryptocurrency. They are tied to another asset, like the U.S. dollar, to maintain a more stable price   Congress has yet to pass legislation creating a broader crypto framework. The key issue at hand is how to split up oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.   Check out the full report at TheHill.com tomorrow morning. Welcome to The Hill's Technology newsletter, I'm Julia Shapero — tracking the latest moves from Capitol Hill to Silicon Valley. Did someone forward you this newsletter? Subscribe here. Essential Reads  How policy will be impacting the tech sector now and in the future: Republicans press Lutnick on AI chip policy A group of House Republicans pressed Commerce Secretary Howard Lutnick to quickly nail down the administration's policy on artificial intelligence (AI) chip exports Thursday after rescinding the Biden administration's framework.  Eight GOP lawmakers, led by Rep. Mark Alford (R-Mo.), urged the administration to provide a "stable exporting structure" to replace former President Biden's AI diffusion rule.  "This rule would have …  Full Story Trump posts fake video of Obama getting arrested President Trump posted a fake video to Truth Social on Sunday night showing former President Obama being arrested in the Oval Office with the song "Y.M.C.A." playing in the background. The video of Obama, which seemed to originate from TikTok before being reposted by the president, appears to be generated by artificial intelligence (AI). It was preceded by a 30-second compilation of real clips from Democratic officials saying …  Full Story Alaska Airlines resumes operations after hours-long ground stop Alaska Airlines resumed its operations early Monday after grounding all flights for about three hours because of a technical outage. The "temporary, system-wide ground stop" began around 8 p.m. PDT and applied to all Alaska Airlines and Horizon Air flights. By 11 p.m., the ground stop had been lifted, Alaska Airlines said in a statement. "As we reposition our aircraft and crews, there will most likely be residual impacts to …  Full Story The Refresh  News we've flagged from the intersection of tech and other topics: Blackstone drops out of consortium bid for TikTok U.S. (Reuters) SoftBank and OpenAI's $500 billion AI project struggles to get off ground (Wall Street Journal) Crypto Corner  What a GOP bill banning a CBDC means for consumer banking © Greg Nash A proposed GOP ban on a central bank digital currency (CBDC) could pump the brakes on grand visions to reshape electronic payment access around the Federal Reserve.    Republican lawmakers pushed the ban through the House on Thursday over concerns the government could use a CBDC to surveil Americans' financial transactions.   The banking industry has also lobbied against the currency, arguing the public already has sufficient access to easily usable and safe digital money.   "Nobody yet knows whether a CBDC is a good idea or not," Rep. Jim Himes (D-Conn.), who has pushed for the government to explore a CBDC, said following the House's vote.   "There is potential for abuse and corruption, but also for extraordinary modernization that could serve unbanked communities, support the primacy of the U.S. dollar, and much more," he added.   In 2022, the Federal Reserve issued a study of CBDCs that outlined their risks and benefits.    "All options for private digital money, including stablecoins and other cryptocurrencies, require mechanisms to reduce liquidity risk and credit risk. But all these mechanisms are imperfect," the report notes.   A CBDC, backed with the full faith and credit of the U.S. government, would be the safest possible digital asset. The Fed paper said that a CBDC could make cross-border payments easier and potentially improve access to banking for low-income households.   In 2022, former Federal Reserve Vice Chair Lael Brainard estimated that it would take "a long time" — at least five years, she said — to launch a digital currency if Congress decided to do so.   Fed Chair Jerome Powell said in February that the bank would not develop a CBDC under his tenure. His term expires in May 2026.   Privacy is the biggest concern about CBDCs aired by Republican lawmakers. House Majority Whip Tom Emmer (R-Minn.), who led the CBDC ban through the House, said on the floor that a digital dollar would be tantamount to government surveillance.   The Hill's Miram Waldvogel has more here. Crypto Corner is a daily feature focused on digital currency and its outlook in Washington. In Other News  Branch out with other reads on The Hill: Astronomer CEO resigns after Coldplay video goes viral TAMPA, Fla. (WFLA) — The CEO of Astronomer, a New York-based tech company, resigned Saturday following speculation surrounding a moment caught on camera during a Coldplay concert in Massachusetts this week. A viral video showed a couple quickly hiding from the camera after being shown on the big screen at a Coldplay concert at Gillette Stadium on Wednesday. Coldplay front man Chris Martin teased the two after witnessing their … Full Story Op-eds in The Hill Opinions related to tech submitted to The Hill: NASA's summer of discontent may be coming to an end As political violence intensifies, stop publishing home addresses   You're all caught up. See you tomorrow!  Check out The Hill's Technology page for the latest coverage. Like this newsletter? 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