#StablecoinLaw

Washington, July 19 (Xinhua) U.S. President Donald Trump signed the National Stablecoin Innovation Act, or the Genius Act, into law on Friday, marking the first major federal legislation in the country regulating cryptocurrencies.

After its passage with bipartisan support in Congress, this legislation provided an immediate boost to market sentiment: the total value of cryptocurrency assets surpassed $4 trillion, according to CoinGecko, a cryptocurrency data aggregation site.

Trump stated, "This may be the greatest revolution in financial technology since the inception of the Internet."

What are stablecoins?

Unlike volatile cryptocurrencies like Bitcoin, stablecoins are designed to maintain a stable value by pegging them one-to-one to a stable asset, typically the U.S. dollar. For every stablecoin in circulation, the issuing company is expected to hold equivalent reserves, such as cash or short-term Treasury bonds.