Trump Signs Landmark Stablecoin Law, Ushering in New Era for Crypto

President Donald Trump enacted the first significant federal regulation on stablecoins on Friday, representing a major step forward for the cryptocurrency industry as it seeks wider acceptance and use. This new law, known as the GENIUS Act, introduces federal guidelines for stablecoins, which are cryptocurrencies designed to maintain a consistent value, often linked to the US dollar. The bill received substantial support in the House of Representatives, passing with a strong majority.

During the signing ceremony, which was attended by several cryptocurrency executives, Trump praised the efforts of those involved. The law mandates that stablecoins be fully backed by liquid assets, such as US dollars and short-term Treasury bills. Issuers will also be required to publicly report the details of their reserves on a monthly basis.

This legislation is considered a significant win for cryptocurrency supporters who have long advocated for a clear regulatory structure. The goal is to provide stability for the industry, promote innovation, and attract mainstream institutions and users. The stablecoin market, currently valued at over US$260 billion, is projected to grow substantially in the coming years.

Industry participants believe the law will enhance the credibility of stablecoins and make them more accessible for instant payments by banks, merchants, and consumers. Some cryptocurrency companies are already seeking banking licenses to facilitate quicker, more affordable settlements and build trust.

However, the legislation has also faced criticism. Some Democrats and consumer advocates argue that it lacks sufficient safeguards against money laundering and does not prevent large technology companies or foreign entities from issuing their own stablecoins. This raises concerns about market concentration and the effectiveness of regulatory oversight. The passage of the law followed an extensive lobbying effort by the cryptocurrency sector, which invested heavily in supporting pro-crypto candidates during the recent election cycle.