**🚀 President Trump signs the GENIUS Act to regulate stablecoins!**
**The first comprehensive federal framework regulating a $150 billion market 🇺🇸**
📅 **Date:** July 18, 2025
📜 **Key Details:**
✔ **1:1 backing with liquid assets** (US Dollar or short-term bonds).
✔ **Mandatory monthly disclosure** of reserves to enhance transparency.
✔ **Ban on yield-generating stablecoins** (like some decentralized finance models).
✔ **The law passed with a sweeping majority** (308-122) in the House with bipartisan support.
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### **🔍 Driving Factors of the Discussion:**
- **Ending regulatory ambiguity** after shocks like the collapse of **TerraUSD**.
- **Enhancing legitimacy** for dollar-backed digital currencies.
- **Trump's support** sends a strong signal **for embracing financial innovation** in Washington.
- **Opening the door for traditional banks** to issue stablecoins (new opportunities for financial institutions).
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### **📈 Implications for Trading and Investment:**
✅ **Increased confidence** in compliant stablecoins like **USDC and USDT** due to transparency.
⚡ **Short-term volatility** as non-compliant projects adapt (like **Reserve Rights**).
🏦 **Entry of major banks** may boost institutional adoption of stablecoins.
📅 **New trading cycles** tied to monthly disclosure dates.
