On July 17, 2025, the US Congress passed a bill regulating the operation of **US dollar-pegged stablecoins**, which is a significant step towards integrating digital currencies into the traditional financial system. After being signed by President Donald Trump, this law came into effect and aims to establish a clear regulatory framework for companies that issue and deal with these currencies.
#### What are stablecoins?
Stablecoins are a type of digital currency whose value is tied to a traditional currency such as the US dollar or euro, aimed at reducing the volatility that characterizes most digital currencies like Bitcoin and Ethereum.
For example:
- **Tether (USDT)**
- **USD Coin (USDC)**
Both are pegged to the US dollar at a 1:1 ratio
### Why does this law matter?
#### 1. **Enhancing Trust**
Thanks to reserve requirements and oversight, the law will increase user and developer confidence in using stablecoins, which may lead to greater adoption in everyday transactions and decentralized applications (DeFi).
#### 2. **Driving Mainstream Adoption**
With a clear legal framework, major companies will be more willing to use stablecoins as a means of payment or settlement, especially across borders.
#### 3. **Positive Market Impact**
The global market size for stablecoins has increased from $20 billion in 2020 to over **$246 billion in May 2025**. This growth is expected to continue at an accelerated pace following the enactment of this law.
### How does this law affect the price of Bitcoin and other currencies?
- **Encouraging usage**: The proliferation of stablecoins can facilitate entry and exit from the cryptocurrency market, potentially increasing liquidity.
- **Reducing volatility**: Using stablecoins as a bridge between digital assets and cash may help to stabilize markets.
- **Indirect price impact**: Although the law does not directly address the prices of currencies like **BTC** or **ETH**, it enhances the infrastructure that supports trading them, which may positively reflect on their long-term performance.
### Summary
The Stablecoin Law is an important step towards legitimizing and integrating digital currencies into the global economy. By imposing strict conditions on transparency and reserves, the law seeks to strike a balance between innovation and risk reduction. This could be the beginning of a new phase of growth and stability in the Web 3 and blockchain sector.
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