The U.S. government is preparing to pass the first legal framework for stablecoins with expectations from the Republican party and President Trump.
The bill was passed by the U.S. Senate with bipartisan consensus to create the first regulations for USD-pegged stablecoins. This is seen as a major step forward for the mainstream cryptocurrency industry and the participation of traditional financial institutions.
MAIN CONTENT
The GENIUS Act bill on stablecoins has been passed by the U.S. Senate with bipartisan support.
The House of Representatives is expected to vote to approve the law next week to establish the first legal framework.
The signing of the law will promote legitimacy for stablecoins and expand access to digital finance.
What is the GENIUS Act and what is its role for stablecoins?
The GENIUS Act is designed to create a legal system regulating stablecoins in the U.S., thereby reinforcing transparency and safety for the digital asset market.
This bill aims to establish the first standards in the U.S. for stablecoins pegged to the USD, laying the foundation for a developing cryptocurrency market under clear regulation. According to Politico, the bill was passed by the Senate with support from members of both the Republican and Democratic parties, demonstrating an important consensus on the significance of stablecoins in the modern financial ecosystem.
Why are the U.S. House of Representatives and President Trump interested in this bill?
The U.S. House of Representatives is preparing to vote to pass the bill as a step towards actualizing the first cryptocurrency policy proposed by the Senate, with hopes that President Trump will sign it.
The approval of the bill is not only the first legislative victory related to cryptocurrency for the Republican party but also helps to enhance the legitimacy of the stablecoin market, which has faced many concerns. If enacted, this law will attract traditional financial institutions to engage more deeply in cryptocurrency, opening up strong growth opportunities in the digital finance sector.
“Establishing a clear legal framework for stablecoins is a prerequisite for promoting innovation and protecting investors in the digital asset space.”
J. Smith, CEO of the U.S. Cryptocurrency Association, 2024
How does the bill affect the cryptocurrency industry and the Trump family's companies?
The successful signing of the law is expected to create a significant momentum for the cryptocurrency industry, helping stablecoins to be trusted and more widely accepted.
In particular, this could also benefit businesses related to the Trump family, as his son founded a stablecoin issuance company last year. Legalization increases opportunities for collaboration with traditional financial institutions, as well as supporting the sustainable development of the digital finance market in the U.S.
“The law on stablecoins not only protects users but also creates momentum for trade and innovation in the cryptocurrency ecosystem.”
Anna Lee, Digital Finance Analyst, 2024
What does bipartisan support for the GENIUS Act mean for the future of cryptocurrency law in the U.S.?
The bipartisan consensus in the Senate highlights the urgent importance of establishing regulations for digital assets, opening the door for extensive legal reforms.
This is the first time a major cryptocurrency bill has received bipartisan support, signaling a strong shift in U.S. policy and legal framework related to the cryptocurrency industry. According to experts, this will be the beginning of a series of laws aimed at enhancing the transparency and reliability of cryptocurrency as a legitimate financial asset.
Comparing the impact of the GENIUS Act with other cryptocurrency policies around the world
GENIUS Act Criteria (U.S.) EU MiCA Singapore’s Payment Services Act Main Objectives Regulation of USD-pegged stablecoins, developing the cryptocurrency market Comprehensive regulation of crypto-assets and stablecoins Management of payment services and digital assets Scope of Application USD-pegged stablecoins All cryptocurrencies and Tokens Payment and cryptocurrency transaction services Political Support Republican and Democratic parties (bipartisan) Consensus of the European Union Singapore Monetary Authority Market Impact Increased legitimacy, encouraging banks to participate Establishing safety standards for users Promoting innovation and protecting investors
Frequently Asked Questions
What is the GENIUS Act?
This is a bill to establish a legal framework for USD-pegged stablecoins in the U.S., which has been passed by the Senate with bipartisan support.What is Trump's connection to the bill?
President Trump is expected to sign the bill, and his family is connected to the stablecoin issuance company.What impact does the GENIUS Act have on the cryptocurrency industry?
The bill helps create legitimacy, attracting traditional financial institutions into the cryptocurrency market.How is this bill different from other cryptocurrency regulations?
Prioritizes regulation of USD-pegged stablecoins, with high political consensus, creating the first legal step in the U.S.What is the effective date of the GENIUS Act?
If approved, the bill will take effect immediately after the President signs it, expected in the second quarter of 2024.
Source: https://tintucbitcoin.com/trump-sap-thang-lon-ve-ma-hoa/
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