Trump Unleashes Crypto Revolution with New Stablecoin Law

U.S. President Donald Trump signed a landmark law on Friday, the GENIUS Act, creating a regulatory framework for stablecoins, which are U.S.-dollar-pegged cryptocurrencies. This legislation represents a significant advancement for digital currency enthusiasts who have long pursued legitimacy in an industry known for its innovation and volatility.

The law, which received bipartisan support with a 308 to 122 vote, could facilitate the integration of stablecoins into everyday payments. Stablecoins aim to maintain a constant 1:1 U.S. dollar value, and their usage has soared, particularly by crypto traders transferring funds between tokens. Under the new law, stablecoins must be backed by liquid assets, with issuers required to disclose their reserves monthly.

The regulation comes after extensive lobbying efforts by the crypto industry, which donated significantly to pro-crypto candidates, including Trump. While the industry welcomes this increased legitimacy, some Democrats express concerns regarding potential power imbalances if big tech companies issue their own stablecoins. Despite ongoing debates, the law could amplify demand for Treasury bills, impacting U.S. financial markets.

(With inputs from agencies.)