President Donald Trump on Friday signed the GENIUS Act, the United States\u2019 first federal law dedicated to regulating dollar-pegged cryptocurrencies known as stablecoins<\/p>\n
President Donald Trump on Friday signed the GENIUS Act, the United States\u2019 first federal law dedicated to regulating dollar-pegged cryptocurrencies known as stablecoins. The measure establishes a licensing regime for issuers and gives federal agencies clear oversight powers, marking the digital-asset industry\u2019s most significant legislative win to date.<\/p>\n
Passed in the House by 308 to 122, the law requires stablecoins to be fully backed by liquid assets such as cash or short-term Treasury bills and mandates monthly public disclosure of those reserves. The rules aim to assure consumers that tokens maintain their one-to-one dollar peg and to curb the kind of opaque practices that have rattled crypto markets in recent years.<\/p>\n
Supporters say the framework could accelerate mainstream adoption of stablecoins for everyday payments and remittances. CoinGecko values the existing stablecoin market at about $260 billion, while Standard Chartered projects it could swell to $2 trillion by 2028 under a transparent regulatory regime. The asset-backing requirement is also expected to increase demand for short-term U.S. government debt as issuers accumulate Treasury bills.<\/p>\n
Critics, including several Democratic lawmakers, argued the legislation should have imposed tougher anti-money-laundering safeguards and limited large technology firms\u2019 ability to issue their own tokens. The White House countered that the act strikes a balance between innovation and oversight, positioning the United States as a leading jurisdiction for digital-asset regulation.<\/p>\n