The cryptocurrency sector welcomes significant news! Trump signed a historic bill, and $9 trillion in retirement funds may flood into the cryptocurrency market, causing industry upheaval!
On July 18, 2025, in the Oval Office of the White House, Trump signed the first federal-level cryptocurrency bill in the US—(Genius Act). The moment the bill took effect, it stirred waves in the global cryptocurrency market. This legislative action, referred to as the 'Dollar Defense War,' not only grants legal status to stablecoins but also conceals a significant layout by the Trump administration regarding cryptocurrency: allowing $9 trillion in retirement funds to invest in Bitcoin and other crypto assets.
I. Core of the Bill: Stablecoins Become the Dollar's 'Booster'
(Genius Act) key requirements include:
- Stablecoins must be hard-pegged to the dollar at a 1:1 ratio, using an equivalent amount of dollar cash, short-term US Treasury bonds, or highly liquid assets as reserves, and publish monthly audit reports.
- Implement a licensing access system; issuers must obtain federal or state-level permission, and technology giants are prohibited from directly issuing stablecoins.
- Strengthen anti-money laundering regulations, mandating connection to Federal Reserve monitoring systems; anonymous transactions may become a thing of the past.
Trump's consideration is to convert the global demand for cryptocurrency payments into demand for US Treasury bonds by forcing stablecoins to purchase US debt. US Treasury Secretary Besant bluntly stated: 'This is equivalent to installing an 'automatic vending machine' for US debt, and the scale of stablecoins could soar to $3.7 trillion within the next three years.'
II. Retirement Funds Entering the Market: $9 Trillion 'New Momentum' Approaches
The day after the bill was signed, reports indicated that Trump would sign an executive order allowing US 401(k) retirement plans to invest in cryptocurrencies, private equity, and other alternative assets. This decision, involving a market of $8.9 trillion, is seen on Wall Street as the 'coming of age' for cryptocurrencies.
Currently, institutional funds have begun to act; JP Morgan, Citigroup, and others have launched 401(k) products that include Bitcoin, and payment giants like Visa and PayPal are also accelerating their cryptocurrency settlement layouts. As a result, the cryptocurrency sector is celebrating, with Coinbase and Robinhood stock prices soaring 20% in a single day, and Bitcoin breaking the $100,000 mark before retreating, intensifying market speculation.
In response, Democratic lawmakers criticized, arguing that 'investing retirement funds in virtual assets is a crime,' while Trump responded: 'Preventing ordinary people from sharing in the dividends of innovation is a betrayal of the American Dream.'
III. Trump's 'Layout': Bitcoin Included in National Strategic Reserves
At the bill signing ceremony, Trump unexpectedly revealed the federal 'Strategic Bitcoin Reserve' plan and named five major cryptocurrencies: Bitcoin, Ethereum, Ripple, Solana, and Cardano. The selection criteria primarily considered technological maturity, liquidity, and political endorsement.
However, this plan has also sparked controversy; although the Trump Coin and Melania Coin issued by the Trump family are not included in the reserves, the bill does not prohibit presidential relatives from participating in cryptocurrency businesses, leading to accusations of 'interest transfer.'
The international community has also reacted differently: the EU warns that 'the US may harvest global dollar demand through stablecoins'; Russia announces it will accelerate the development of the 'digital ruble' to counter the hegemony of dollar stablecoins; and El Salvador's President Bukele calls for an expansion of the 'Bitcoin Nation Alliance.'
IV. The Future of the Cryptocurrency Circle: Opportunities and Risks Coexist
- Positive aspects: With clear regulations, institutions like Goldman Sachs and BlackRock are expected to accelerate their entry, breaking down barriers between traditional finance and the cryptocurrency market. Additionally, the US may promote G7 countries to recognize the legal status of stablecoins, reshaping the global payment system.
- Risk points: The Bank for International Settlements warns that stablecoins may become a 'new channel for money laundering' and could trigger capital flight from emerging markets. Meanwhile, if Trump fails to be re-elected, related policies may change; the Democratic Party is already brewing a 'Cryptocurrency Consumer Protection Act.'
Overall, the implementation of the (Genius Act) is not the end, but the beginning of the nationalization of cryptocurrency. Through two major initiatives involving retirement funds and strategic reserves, Trump caters to his backers while extending the vitality of US debt. However, it should be noted that when the government begins to intervene for protection, it often means that stricter regulation is on the way. In the future, compliance costs may eliminate 90% of small players, and the real drama in the cryptocurrency market has just begun.
