The Republican-controlled House on Thursday passed landmark legislation to regulate stablecoin in a big win for the cryptocurrency industry.

• The GENIUS Act creates a regulatory framework for stablecoins, a type of cryptocurrency tied to the value of an asset like the U.S. dollar.
• Advocates say the bill will protect consumers.
• Democrats have raised concerns about President Trump’s financial ties to the crypto indusry.
• Trump last year launched World Liberty Financial, which issued a U.S. dollar-backed stablecoin, and raised raised $550 million selling a different crypto coin known as $WLFI.
• Trump also held a dinner in May for the top purchasers of the $TRUMP meme coin, owned by an affiliate of The Trump Organization.

WASHINGTON – The Republican-controlled House passed a trio of bills on July 17 that amount to a big win for a cryptocurrency industry that has helped make President Donald Trump tens of millions of dollars.

A piece of the landmark legislation package, dubbed the GENIUS Act, creates a regulatory framework for stablecoins, a type of cryptocurrency tied to the value of an asset like the U.S. dollar.

Advocates say the primary bill will help protect consumers and set industry standards that could allow stablecoins to become mainstream for digital payments and other financial instruments.

More: Trump joins tech leaders to launch $90 billion AI push at Pittsburgh summit

The main bill, approved by the Senate in June, passed the House by a vote of 308-122, with all Republicans and several Democrats voting in favor. It is now headed to Trump’s desk to be signed into law.

“This is a historic opportunity for the United States. After years of work, American innovators are one step closer to having the clarity they need to build here at home while ensuring the future of the digital economy reflects our values of privacy, individual sovereignty, and free-market competitiveness,” Republican Majority Whip Rep. Tom Emmer of Minnesota said in a statement. 

However, House leadership had hit unexpected hurdles midweek while trying to advance the three crypto bills, with the first procedural votes on July 16 breaking a record for the chamber by lasting about nine hours.

One measure barring the Federal Reserve from creating a central bank for cryptocurrency was a particular sticking point, with Republicans debating how to best set the bill up to succeed in a future Senate vote. It passed the lower chamber on July 17 entirely with GOP support in a 219-210 vote that fell along party lines.

The Clarity Act, which defines when a cryptocurrency is a security or a commodity and clarifies the Securities and Exchange Commission’s jurisdiction over the entire financial sector, also passed the House on July 17 and must head to the Senate.

Senate Democrats have voiced concerns about Trump’s connections to the cryptocurrency industry. 

“The GENIUS Act will accelerate Trump’s corruption by supercharging the size of the stablecoin market and the reach and profitability of USD1,” said Sen. Elizabeth Warren, D-Massachusetts, on the Senate floor in May. 

One of the biggest money-making ventures for Trump was World Liberty Financial, a cryptocurrency platform launched last year. It brought in $57.3 million and it launched USD1, a U.S. dollar-backed stablecoin.

Trump also held a dinner in May for the top purchasers of the $TRUMP meme coin, owned by an affiliate of The Trump Organization.

However, supporters of the bill maintained that it could help safeguard investors and help Americans have greater access to the financial system.  

“The golden age of digital assets is here, and the U.S. will lead,” said Wisconsin Rep. Bryan Steil in a statement. 

Contributing: Riley Beggin,  Medora Lee and Swapna Venugopal Ramaswamy, USA TODAY

Iurii Gugnin, a 38-year-old Russian national residing in New York, has been charged with 22 criminal counts by the US Department of Justice (DOJ) for allegedly laundering over $530 million through his cryptocurrency companies, Evita Investments and Evita Pay. The charges include wire fraud, bank fraud, money laundering, and violations of the International Emergency Economic Powers Act (IEEPA).

Gugnin is accused of creating a financial pipeline using the stablecoin Tether USDt (USDT) to support sanctioned Russian entities and bypass US sanctions and export controls. He allegedly deceived banks, falsified compliance documents, and facilitated access to sensitive US technologies. Gugnin’s actions highlight the misuse of digital assets for illicit finance and the growing challenges of regulating cryptocurrency markets.

Gugnin presented Evita as a legitimate cryptocurrency payment service but allegedly used it to secretly transfer illegal funds for Russian clients. By posing as a compliant financial technology company, Evita moved money through US banks and crypto exchanges while hiding the funds’ real sources. As president, treasurer, and compliance officer, Gugnin had complete control over these companies’ operations, finances, and regulatory reporting, enabling him to manage transactions, misrepresent the companies’ activities, and ignore Anti-Money Laundering (AML) rules. Authorities claim Evita’s systems were used to help sanctioned Russian entities obtain US technology and channel funds through stablecoins like USDT.

Gugnin is accused of moving $530 million through the US financial system while concealing the illicit origins of the funds. He laundered about $530 million through US banks and cryptocurrency exchanges, primarily using USDT, a stablecoin tied to the US dollar and known for its fast, low-volatility cross-border transactions. The operation involved receiving cryptocurrency from foreign clients, many connected to sanctioned Russian banks, including Sberbank, VTB, Sovcombank, and Tinkoff. These digital funds were channeled through cryptocurrency wallets controlled by Evita and then converted into US dollars or other traditional currencies via US bank accounts. This helped Gugnin to obscure their origins and assist Russian clients in evading international sanctions.

Gugnin used deceptive methods to hide the illegal nature of these cross-border transactions. He altered invoices digitally to remove the names and addresses of Russian clients and provided false compliance documents to banks and cryptocurrency exchanges. These documents wrongly claimed that Evita had no ties to sanctioned entities and had complied with AML and Know Your Customer (KYC) regulations. Despite claiming compliance, Evita allegedly operated without an actual AML compliance and failed to file Suspicious Activity Reports (SARs) as required by US regulations. This allowed Gugnin to mask the source and purpose of the funds, enabling high-risk transactions that may have supported Russia’s access to restricted US technology.

Gugnin, through his cryptocurrency companies, allegedly created a financial network to support Russian entities banned by US sanctions. Prosecutors allege he handled more than $500 million in transactions for Russian clients connected to sanctioned banks, including PJSC Sberbank, PJSC Sovcombank, PJSC VTB Bank, and JSC Tinkoff Bank. While living in the US, Gugnin held personal accounts with sanctioned banks JSC Alfa-Bank and PJSC Sberbank. He also enabled payments to acquire US export-controlled technology, such as sensitive servers, and laundered money to obtain components for Rosatom, Russia’s state nuclear agency. Actions of Gugnin and Evita provided Russian clients access to restricted components. Gugnin hid his activities by altering invoices to conceal Russian ties and falsifying compliance documents.

Gugnin and his companies are accused of deliberately violating US sanctions and export controls and the International Emergency Economic Powers Act (IEEPA). He allegedly deceived US banks and cryptocurrency exchanges by falsely stating that Evita had no connections with sanctioned Russian entities, while actively processing transactions for clients linked to blacklisted banks. To hide his activities, Gugnin secured a Florida money transmitter license by providing false details about Evita’s operations. This allowed him to use crypto exchange services under the pretense of compliance. Gugnin transferred over $500 million, often in USDT, into the US financial system through this scheme. Gugnin’s actions violated federal laws and threatened national security by enabling sanctioned entities to evade restrictions and illegally obtain sensitive US technologies.

The US DOJ alleges that Gugnin and his crypto companies failed to follow key AML rules required by the Bank Secrecy Act. Although Gugnin presented Evita as a legitimate money services business, he allegedly did not establish an effective AML program and failed to submit suspicious activity reports (SARs) to the Financial Crimes Enforcement Network (FinCEN), which are crucial for detecting and preventing illegal financial activities. Moreover, Gugnin misled banks and cryptocurrency exchanges by falsely claiming that Evita complied with strict AML and KYC standards, when these measures were either inadequate or missing. This deception allowed over $500 million to flow through the US financial system without proper regulatory oversight.

Federal investigators found strong evidence that Gugnin knew his actions were illegal. They found that Gugnin had allegedly searched terms like “how to know if there is an investigation against you,” “money laundering penalties US,” and “am I being investigated?” This showed he was aware of potential legal risks. Gugnin had also searched for “Evita Investments Inc. criminal records” and “Iurii Gugnin criminal records,” indicating he was worried about the consequences of his actions. Gugnin had also visited websites explaining signs of being under criminal investigation and ways to detect law enforcement attention. These online activities suggest he was conscious of his guilt and actively tried to avoid detection. This digital evidence supports the prosecution’s claim that Gugnin intentionally broke US laws while attempting to conceal his money laundering activities from authorities.

Gugnin faces a 22-count federal indictment for offenses related to laundering $530 million through his cryptocurrency companies. He has been charged with wire fraud, bank fraud, money laundering, conspiracy to defraud the US, violations of the IEEPA, and running an unlicensed money transmitting business. Additional charges stem from Gugnin’s failure to establish an effective AML program and not filing suspicious activity reports (SARs). If found guilty, Gugnin could face up to 30 years in prison for each bank fraud charge and up to 20 years for wire fraud and sanctions violations. Gugnin was arrested and arraigned in New York, and he is currently detained while awaiting trial, as authorities consider him a flight risk.

The case against Gugnin reveals increasing concerns about cryptocurrencies, especially stablecoins like Tether, being used to evade cryptocurrency regulations and US sanctions. As part of a broader effort to combat illegal crypto activities, the indictment shows how sanctioned entities, particularly those connected to Russia, use digital currencies to bypass restrictions and access global financial systems. Although stablecoins provide transparent transaction records, their speed and worldwide reach make them appealing for money laundering. The Gugnin case may lead to stricter regulations for crypto exchanges, payment processors, and money transmitters, with more vigorous enforcement of AML and sanctions compliance rules. Gugnin’s case also highlights the national security risks, as his actions enabled Russian clients to obtain restricted US technology. It may result in regulators imposing more stringent reporting measures on crypto firms to prevent foreign adversaries from exploiting digital finance to harm US interests.