Trump enacts law for US dollar stablecoins

The new law aims to establish a framework for US-dollar-backed stablecoins.

Trump signs law to regulate dollar-based stablecoins

US President Donald Trump has signed a law that establishes a regulatory framework for US-dollar-based stablecoins. Known as the GENIUS Act, this legislation passed with bipartisan support in Congress, where it was approved by a vote of 308 to 122. Proponents believe this move will help legitimize cryptocurrencies, making them more accepted for payments and money transfers. During the signing ceremony, Trump emphasized its benefits for the American dollar and hinted at its political advantages, acknowledging substantial donations from the crypto industry during recent elections. Supporters expect the stablecoin market, valued over $260 billion, to potentially double within five years under this new law.

The passing of the GENIUS Act marks a significant shift in the relationship between cryptocurrencies and the US government. As regulators embrace digital currencies, it indicates a growing confidence in their role within the mainstream financial system. However, the lack of comprehensive anti-money laundering protections raises concerns. Critics fear that this legislation may inadvertently invite illicit activities. The future impact on global financial dynamics remains to be seen as the crypto sector seeks greater legitimacy.

Highlights

The long-term implications of this law on the financial landscape will unfold in the coming years.