Donald Trump officially signed the GENIUS Act on Thursday at the White House, establishing regulatory standards for stablecoins. This is the first federal act in the United States focused on cryptocurrency.
The GENIUS Act applies a mandatory asset backing ratio of 1:1 for stablecoin issuers, designating them as official monetary instruments. The immediate market reaction included a 1.3% drop in Bitcoin futures, contrasting with a 16.7% weekly increase in Ethereum futures prices.
The GENIUS Act Enforces Asset Backing at a 1:1 Ratio for Stablecoins
The President of the United States, Donald Trump, has signed the GENIUS Act at the White House, establishing a regulatory oversight mechanism for USD-backed stablecoins. This act was enacted after extensive discussions in Congress, setting new standards for stablecoin issuers.
According to cryptocurrency journalist Eleanor Terrett, this act regulates U.S. digital asset regulation in line with global standards by requiring stablecoins to be backed at a 1:1 ratio by liquid reserves. This regulation aims to enhance transparency and financial security in the cryptocurrency market, potentially affecting stablecoin issuers in organizational forms such as USDT, USDC, and DAI.
Bitcoin futures fell by 1.3%, while Ethereum rose by 16.7%, reflecting diverse market sentiment. Senator Tim Scott chaired a concurrent roundtable meeting, reinforcing the legislative focus on comprehensive compliance for digital assets.
The Historic Act of the United States Could Boost Institutional Participation
Did you know? The GENIUS Act is the first comprehensive federal law in the United States regarding stablecoins, creating a legal framework that was previously only addressed at the agency level. This historic act now aligns national legal standards with global norms.
Tether USDT (USDT), currently priced at $1.00, has a market capitalization of $160.93 billion, with daily trading volume increasing by 1.02% to $156.10 billion, according to CoinMarketCap. Although the price shows minimal short-term volatility, Tether's broad impact remains significant.
Analysis shows the potential to stabilize the market through applied supportive standards, bringing transparency to the entire cryptocurrency sector. 'Crypto Week continues, and the House is expected to vote on important topics such as the 'GENIUS Act,' which is anticipated to pass and be presented to President Trump for signing. The White House has scheduled a signing ceremony for tomorrow.' - Eleanor Terrett, Cryptocurrency Journalist.