Donald Trump Officially Signs the GENIUS Act in Landmark Victory for the Crypto Industry.
Pro-crypto US President Donald Trump has officially signed the GENIUS Act, approving the first federal bill regulating stablecoins.
Trump was quick to affix his signatory approval to the stablecoin bill on Friday, a move he had long awaited. The passed bill provides a clear regulatory framework for US dollar-pegged digital currencies, making a significant victory for the crypto industry.
The GENIUS Act passed in the US House on Thursday, after an earlier setback. Conservative Democrats and House GOP hardliners had repelled the bill two days earlier, citing its lack of provisions for restricting CBDCs.
Meanwhile, Trump convinced the hardliners to pass the stablecoin act, promising to add the now-passed Anti-CBDC Surveillance State bill to the National Defense Authorization Act. Following the Thursday passage, Trump has issued his executive approval to make the bill a law.
The pro-Bitcoin president stated that the bill will help sustain the US’s dominance in the sector, as well as the US dollar’s status as the world’s reserve currency. According to him, a sway from this is similar to “losing a world war.”
Notably, the stablecoin legislation provided certain measures to regulate issuers. Some of them include a requirement to maintain their reserves on a dollar-for-dollar basis in US Treasury bills and other similar vehicles. Citing this provision, David Sacks, the crypto and AI czar, earlier claimed that the bill will attract trillions to the US economy. Moreover, senior Treasury officials also share a similar sentiment. They briefed reporters unanimously on Friday, insisting it would not just create visible regulation for stablecoins but also boost the adoption of cryptocurrency in the United States.
Remarkably, the GENIUS Act is the first-ever federal crypto bill passed in the US amid a push from the current leadership to allow the industry to thrive. It might be the first of many, as the CLARITY and Anti-CBDC Acts also passed in the US House on “Crypto Week.”