Recently, U.S. President Donald Trump signed a regulation known as the GENIUS Act at the White House, establishing a comprehensive regulatory framework for stablecoins. This marks the first major legislation in the U.S. specifically targeting cryptocurrency. The act sets specific regulatory standards for the $250 billion stablecoin market and has secured the support of 206 Republican and 102 Democratic lawmakers.
Stablecoins are a type of cryptocurrency linked to major assets like the US dollar, gaining market attention due to their relative stability. Trump pointed out that the GENIUS Act provides a framework for banks and other financial institutions to issue one-on-one backed by actual dollars and Treasury bonds. This measure not only helps strengthen the market position of the dollar but also brings a Upgrades of the 21st Century to the overall financial system in the United States.
The full name of this legislation is Guiding and establishing a national innovation law for stablecoins in the United States., aimed at providing a certain level of security protection for stablecoins and ensuring consumer rights, delineating which cryptocurrencies can be classified as stablecoins. With the passage of this bill, banks and other financial institutions will be able to further expand their market by issuing their own stablecoins.
Trump emphasized that the GENIUS Act provides a clear and straightforward regulatory framework for stablecoins, revealing the potential of dollar-backed stablecoins. He noted that this could be one of the most significant transformations in fintech since the birth of the internet, gaining widespread recognition.
The legislature has concurrently approved two additional bills related to cryptocurrency, marking the successful conclusion of the event known as Cryptocurrency Week. Among these, the Clarity Act aims to regulate crypto commodities excluding stablecoins, while the Anti-CBDC Surveillance State Act prohibits the Federal Reserve from directly issuing retail central bank cryptocurrencies to the public.
With the government’s adjustments to cryptocurrency regulations, the Trump family has recently amassed considerable wealth through their investments in this sector. The White House has stated that there is no conflict of interest, as the president’s assets are held in a trust managed by his children. Also present at the signing ceremony were the influential Winklevoss twins, who are strong supporters of Trump’s campaign and play a significant role in the cryptocurrency world.
Trump told the cryptocurrency industry leaders attending the event that the signing of this bill is a clear acknowledgment of the cryptocurrency community, which had once been overlooked and marginalized.
