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Trump signs law regulating stablecoins

President Trump has enacted the GENIUS Act to create a framework for dollar-pegged cryptocurrencies.

July 19, 2025 at 02:03 AM

Trump signs stablecoin law as crypto industry aims for mainstream adoption

President Donald Trump has signed the GENIUS Act to regulate stablecoins, marking a significant move for the crypto industry.

Trump signs new law to launch stablecoin regulatory framework

On Friday, President Donald Trump signed the GENIUS Act to create a regulatory framework for stablecoins, cryptocurrencies pegged to the dollar. The bill, which passed with a strong bipartisan vote in Congress, reflects a growing acceptance of digital currencies amid increasing interest from traditional financial sectors. Trump hailed the law as beneficial for the dollar and the U.S. economy. The new regulations require stablecoins to be backed by liquid assets and aim to boost their legitimacy for everyday transactions. The stablecoin market, currently valued at over $260 billion, is projected to expand significantly under this law.

Key Takeaways

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Trump's signing highlights increasing mainstream acceptance of cryptocurrencies.

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The GENIUS Act requires stablecoins to be backed by liquid assets.

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Stablecoin market growth could reach $2 trillion by 2028 according to estimates.

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The law may enhance the credibility of stablecoins among banks and consumers.

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Critics argue the law lacks sufficient protections against financial crime.

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The legislation is seen as significant for the future of U.S. digital currency policy.

"This signing is a massive validation of your hard work and pioneering spirit."

Trump emphasizes the significance of the legislation's support for the crypto community.

"By failing to close known loopholes... Congress has risked making the U.S. financial system a global haven for criminals."

Scott Greytak criticizes the law for lacking adequate protections.

Trump's signing of the GENIUS Act represents a key moment in the ongoing evolution of cryptocurrency regulation. While supporters view this legislation as a path to mainstream usage, critics warn that it may not provide enough safeguards against potential risks, such as financial crimes. The push for stricter guidelines may reflect a broader tension between innovation in the crypto space and the need for regulatory oversight. Additionally, as major banks consider cryptocurrency participation, we may see a shift in how digital assets are integrated into the traditional financial system.