Trump Enacts Landmark Stablecoin Law, Bolstering US Dollar’s Digital Role

In a significant move for the cryptocurrency sector, US President Donald Trump has signed into law a bill establishing a comprehensive regulatory framework for US dollar-backed stablecoins. This legislation, known as the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins), is poised to integrate these digital assets into mainstream financial transactions and payments.

The bill received strong bipartisan support, passing the House of Representatives with a 308-122 vote after earlier approval by the Senate. At the White House signing ceremony, President Trump lauded the initiative, stating, “It’s good for the dollar and it’s good for the country. That’s why I backed you at an early stage. And I also did it for the votes,” acknowledging the crypto industry’s growing political influence and substantial campaign contributions.

This new law represents a major victory for the crypto industry, which has long advocated for clear regulatory guidelines to legitimize stablecoins and encourage broader adoption by financial institutions, retailers, and consumers. Stablecoins, designed to maintain a 1:1 peg to the US dollar, will now be required to be backed by liquid assets, enhancing their stability and reliability.

With the current stablecoin market valued at over $260 billion, projections from Standard Chartered suggest the new law could propel this market to $2 trillion by 2028. Treasury Secretary Scott Bessent emphasized the strategic importance of the legislation, stating, “This groundbreaking technology will buttress the dollar’s status as the global reserve currency, expand access to the dollar economy for billions across the globe, and lead to a surge in demand for US Treasuries, which back stablecoins.”

However, the law has drawn criticism for perceived weaknesses in anti-money laundering protections and for not prohibiting foreign stablecoin issuers. Critics, including Scott Greytak of Transparency International US, warn that the omissions could expose the US financial system to exploitation by illicit actors. This signing follows President Trump’s earlier executive order in March to establish a strategic bitcoin reserve and his prior involvement with crypto, including a partial ownership in World Liberty Financial and the launch of the $TRUMP meme coin in January.

阅读中文版 (Read Chinese Version)

Disclaimer: This content is aggregated from public sources online. Please verify information independently. If you believe your rights have been infringed, contact us for removal.