U.S. President Donald Trump has just signed the GENIUS Act, legalizing stablecoins in the U.S., creating a clear legal framework for this type of digital asset. This event has caused a strong reaction in the cryptocurrency market.
Key content of the GENIUS Act:
• Collateral requirements: Stablecoins must be 100% backed by USD or equivalent liquid assets.
• Regular audits: Issuing organizations must conduct regular audits.
• Anti-money laundering: Strict compliance with anti-money laundering (AML) regulations.
• Licensing mechanism: The licensing mechanism will be implemented at the state or federal level, depending on the case.
Market reaction:
• Coinbase shares surged to an all-time high of $436 after the Act was passed.
• Investors reacted positively, hoping that regulatory clarity will drive innovation in the financial system and expand access to banking.
• Tether and Circle, two major stablecoin companies, have commented on how their company will comply with the new regulations.
Debate surrounding the Act:
• Some Democratic lawmakers and ethics oversight organizations are concerned that this Act will provide personal benefits to the Trump family.
• The Attorney General of New York proposed a comprehensive amendment to the Act to protect consumers and the banking system.
