Trump Signs the GENIUS Act, Cryptocurrency Regulation Reaches a New Milestone
Trump has signed the GENIUS Act, which is significant as the first federal legislation on cryptocurrency in the U.S. 💥
Regulatory Aspect: Strict standards for stablecoins are set, with issuers required to maintain a 1:1 reserve in U.S. dollars and short-term government bonds and to publicly disclose reserves monthly, shifting stablecoins from a 'gray' area to an 'official monetary tool' regulated by national law, establishing a federal framework for cryptocurrency regulation.
Market Impact: In the short term, this may lead to a more regulated stablecoin market and enhance investor confidence; in the long run, it could attract compliant funds into the market, further integrating cryptocurrency with traditional finance, but it will also squeeze the space for illicit operations and accelerate industry reshuffling 🌊
