U.S. President Trump Signs Stablecoin Regulation Act Amid Concerns

According to PANews, U.S. President Donald Trump signed the Stablecoin Regulation Act on July 18, marking the first federal legislation on stablecoins in the United States. This development has sparked discussions about the potential risks associated with stablecoins and their impact on the financial ecosystem.

Stablecoins facilitate anonymous cross-border fund transfers, making it challenging for regulatory bodies to effectively track the flow of funds and accurately assess their scale. This anonymity provides opportunities for illegal financial activities such as money laundering, significantly increasing regulatory difficulties.

In countries and regions with weak financial systems, the widespread use of stablecoins is expected to exert substantial pressure on local financial structures. If a crisis involving stablecoins arises, it could easily trigger a chain reaction of market trust issues, leading to the risk of mass withdrawals.