Donald Trump’s Genius Act: Major crypto bill for stablecoins passed in US; here is what to know

US President Donald Trump on Friday signed the “GENIUS Act,” a brand new legislation aimed toward regulating cost stablecoins, marking a big step towards bringing legitimacy and oversight to the cryptocurrency business. The legislation, formally titled “Guiding and Establishing National Innovation for US Stablecoins,” represents a significant coverage shift for digital belongings in the US. The new legislation obtained sturdy help in each the House and Senate, passing with huge bipartisan backing.Speaking at a White House signing ceremony attended by round 200 folks, together with outstanding crypto executives and prime Republican lawmakers, Trump referred to as the legislation a “massive validation” of the business’s efforts.“For years you were mocked and dismissed and counted out,” he informed the attendees.“This signing is an enormous validation of your arduous work and your pioneering spirit,” the US president added.Later, taking to Truth Social, he wrote “I pledged that we might deliver again American liberty and management and make the US the crypto capital of the world—The Genius Act creates a transparent and easy regulatory framework to set up and unleash the immense promise of dollar-backed stablecoins…”

What is Trump’s GENIUS Act?

The “Guiding and Establishing National Innovation for US Stablecoins” or GENIUS Act is a set of regulatory frameworks aimed toward establishing oversight and shopper protections for stablecoins, cryptocurrencies tied to conventional belongings just like the US greenback to cut back worth volatility. It lays down foundational guidelines for stablecoin issuers, aimed toward bettering shopper confidence in a section of crypto that has seen explosive development, as per AP.The new legislation is an enormous step for an business that has shortly gained political affect in Washington, thanks to heavy lobbying and marketing campaign donations.

Political stance

A notable provision in the brand new legislation prohibits members of Congress and their households from profiting off stablecoins, a transfer meant to deal with considerations over conflicts of curiosity, in accordance to AP.However, the ban doesn’t apply to the president or his household. Trump’s household is identified to maintain a big stake in World Liberty Financial, a crypto agency that launched its personal stablecoin earlier this 12 months, backed in half by an funding fund from the United Arab Emirates.The House additionally superior two extra crypto-related payments on Thursday. One proposes a brand new market construction for the broader cryptocurrency area, whereas the opposite seeks to block the Federal Reserve from issuing a central financial institution digital forex. Both measures now await consideration in the Senate.