US President Donald Trump Signs Landmark Crypto Bill Into Law, Revolutionising Stablecoin Regulations

Washington: President Donald Trump, on Friday, signed the GENIUS Act into law, establishing a comprehensive federal regulatory framework for payment stablecoins in the US. According to the Trump administration, the landmark legislation is set to strengthen consumer confidence in the crypto industry, which has rapidly become a major force in Washington due to substantial campaign donations and lobbying efforts.

The GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins Act, introduced critical guardrails and consumer protections for stablecoins. The trade analysts stated that the digital currencies are tied to assets like the US dollar to minimise price volatility, making them an attractive option for investors and users. The law requires stablecoin issuers to maintain full reserves, undergo regular audits, and adhere to anti-money laundering rules, ensuring a safer and more transparent financial ecosystem.

Donald Trump's Support For Crypto Industry

During the White House bill signing ceremony, Donald Trump lavished praise on crypto leaders, acknowledging their hard work and pioneering spirit. He explained that supporting the cryptocurrency industry is beneficial for the dollar and the country, stating, "That's why I backed you at an early stage." US President Trump also candidly admitted that his support for the crypto industry was partly driven by political considerations, joking, "And I also did it for the votes," which drew laughter from the audience.

The analysts suggested that the GENIUS Act is expected to promote investment, innovation, and financial security in the US. The law, by establishing a clear regulatory framework, will help to cement American dominance in global finance and crypto technology. The crypto industry has been eagerly awaiting the legislation, and its passage is seen as a big validation of the industry's efforts to strengthen its legitimacy and political influence.

In addition to the GENIUS Act, the House of Representatives has passed two other bills, which will support the crypto industry. As per information, one of the bills creates a new market structure for cryptocurrency, while the other bans the Federal Reserve from issuing a Central Bank Digital Currency (CBDC). These measures will now proceed to the Senate for further consideration.

After the signing of the law by the president, the crypto community has welcomed the GENIUS Act, with many industry leaders expressing enthusiasm for the new regulatory framework. Chris Perkins, Managing Partner and President of CoinFund, stated that the GENIUS Act will go down in history as a foundational step in the mainstreaming of crypto as an asset class.

The analysts further asserted that the utilisation of stablecoins has experienced dramatic growth in recent years. Circle, the US-based issuer of one of the most popular cryptocurrencies, made its debut on the New York Stock Exchange earlier this year and observed its value surge amid considerable interest from cryptocurrency enthusiasts and investors. Stablecoin issuers generated profits by collecting interest on the assets they hold in reserve to back their stablecoins. 

Importantly, a provision within the GENIUS Act prohibits members of Congress and their families from profiting from stablecoins, as per reports. However, the prohibition does not extend to the President and his family, even as Trump constructed a cryptocurrency empire from the White House. His family holds a large stake in World Liberty Financial, a cryptocurrency project that launched its own stablecoin earlier this year and received an early boost from an investment fund in the United Arab Emirates (UAE).