Cryptocurrency Boom: Trump Signs GENIUS Act; Sets Guardrails & Consumer Protections For Stablecoins
On Friday, President Donald Trump signed into law new regulations for a type of cryptocurrency. The GENIUS Act sets guardrails and consumer protections for stablecoins. They are tied to assets like the US dollar. This is done to reduce price volatility compared to other forms of currency.
According to The Economic Times, this is a major milestone for an industry that spent heavily to strengthen its legitimacy and political might.
The GENIUS Act passed both the House and Senate with wide bipartisan margins. In the crypto industry, the new law is meant to bolster consumer confidence, according to The Economic Times. It has quickly become a major power player in Washington due to massive campaign donations and lobbying expenses. Trump had repeatedly pledged to make the US the "crypto capital of the world."
"For years you were mocked and dismissed and counted out," Trump told crypto industry executives at a White House bill signing attended by about 200 people, including several top GOP lawmakers. "This signing is a massive validation of your hard work and your pioneering spirit."
Trump had previously been skeptic of cryptocurrency, but then he accepted it. To boost the crypto industry, his administration has taken several early steps. This includes the Securities and Exchange Commission dropping several enforcement actions against large crypto companies.
Circle, the U.S.-based issuer of one of the most popular cryptocurrencies, made its debut on the New York Stock Exchange earlier this year and quickly saw its value soar amid heavy interest from crypto enthusiasts and investors. Stablecoin issuers make profits by collecting the interest on the assets they hold in reserve to back their stablecoins.
His family holds a significant stake in World Liberty Financial, a crypto project that launched its stablecoin earlier this year and received an early boost from an investment fund in the United Arab Emirates.
According to the Economic Times, a provision in the GENIUS Act bans members of Congress and their families from profiting from stablecoins. But that prohibition does not extend to the president and his family, even as Trump builds a crypto empire from the White House.
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