Lawmakers in the US recently passed a major cryptocurrency legislation that marks a huge milestone towards the recognition of the cryptocurrency space.
It is without a doubt that the crypto sector overwhelmingly supported elections and continues to support presidents like Donald Trump.
A closer look at this bill shows that a regulatory regime has been established for stablecoins that have historically been backed by reliable assets like the dollar.
The bill which is known as the Genius Act is among the three cryptocurrency legislations being supported by Trump, despite his earlier sentiments that crypto is a scam.
This legislation is aimed at providing clear guidelines for growing the industry and ensuring that America is not left behind when it comes to making payments using crypto.
Additionally, this legislation requires stablecoins to be backed one-for-one with the American dollar or other low-risk assets, and these stablecoins to be used by traders when moving their funds between the different crypto tokens.
However, critics of this bill argue that it introduces financial system risks by encouraging the use of stablecoins without establishing enough protection for customers.
Despite this ctiticism, the senate is still on course to pass the remaining two bills that will also prevent the American central bank from setting up a digital currency, and also establish a regulatory framework for other forms of crypto.
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