Trump's GENIUS: The New Era of Stablecoin Regulation

U.S. President Donald Trump signed a groundbreaking law to regulate stablecoins, dollar-pegged cryptocurrencies, marking a significant step for digital assets to become mainstream. The law mandates backing by liquid assets and monthly reserve disclosures, potentially boosting the stablecoin market to $2 trillion by 2028.

In a landmark move for digital currencies, U.S. President Donald Trump signed the GENIUS Act into law on Friday, establishing a regulatory framework for stablecoins. These dollar-pegged cryptocurrencies could transform everyday transactions by providing instant payment solutions.

The legislation, passed overwhelmingly in both the House and Senate, is seen as a significant victory for cryptocurrency proponents who have pushed for legitimizing the sector. 'It's good for the dollar and the country,' Trump declared at the signing ceremony, emphasizing the new law's potential to reinforce the U.S. dollar's global standing.

Stablecoins, which maintain a 1:1 dollar value, are now required to be backed by liquid assets and must publicly disclose their reserves monthly. While the stablecoin market, valued at over $260 billion, anticipates reaching $2 trillion in five years, critics argue the law fails to curb the influence of big tech and enhance anti-money laundering safeguards. Nonetheless, major U.S. banks and crypto firms are eyeing expansion, viewing the stablecoin framework as a promising avenue for growth.

(With inputs from agencies.)