Trump Signs First Law Regulating Stablecoins in America and Opens New Avenues for Digital Assets

U.S. President Donald Trump has signed the "GENIUS" Act, which is considered the first federal regulatory framework for dollar-backed stablecoins. This law represents a significant victory for the cryptocurrency sector seeking to enhance its legitimacy and influence in Washington.

*What Does the GENIUS Act Mean?*

- It regulates the issuance of stablecoins by American companies.

- It defines how they are managed and used in everyday payments.

- It officially recognizes stablecoins, which may pave the way for their broader use within the U.S. financial system.¹

*Key Features of the Law*

- It requires stablecoin issuers to peg their coins to liquid assets such as the dollar and short-term Treasury bonds.

- It imposes transparency requirements that include monthly public disclosures of the asset structures backing these coins.

- It prohibits members of Congress and their families from profiting personally from stablecoins, with an exception for President Trump and his family.²

*Impact of the Law on the Cryptocurrency Market*

- The market capitalization of stablecoins currently exceeds $260 billion and is expected to rise to $2 trillion by 2028.

- It boosts investor confidence in the cryptocurrency sector.

- It may lead to increased demand for the dollar and U.S. debt.