- Trump signs the GENIUS Act into law, marking the first federal regulation of crypto and stablecoin issuers.
- The law mandates stablecoin issuers like Tether and Ripple to maintain full 100% asset-backed reserves.
- CLARITY and Anti-CBDC Acts still await Senate approval to complete the U.S. crypto regulation framework.
The United States has taken a massive step in regulating crypto. President Donald Trump officially signed into law the GENIUS Act, the very first federal legislation that concerned itself with digital assets and stablecoins. It was signed in an official ceremony at the White House and is being pronounced as a landmark moment in the crypto industry.
The GENIUS Act presents stricter regulatory measures to be taken in relation to the issuers of stablecoins, such as Tether, Circle, and Ripple. Issuers are required by the law to maintain 100% reserves against every coin in circulation. This is supposed to safeguard consumers and make the market more stable.
Source: CBS
GENIUS Act Passed
In the House, the bill passed by an overwhelming bipartisan majority. The legislation passed with 308 representatives voting in its support. It was enacted with two other bills in line of billing the CLARITY Act and the Anti-CBDC Act, which are still awaiting Senate ruling.
Trump declared that the GENIUS Act places the US in a leading position over China and Europe in the innovation of crypto. He stressed that the legislation would ensure that America would lead in digital finance and boost the status of the U.S. dollar in the world.
The crypto sector has long been in a grey regulatory area. The Securities and Exchange Commission under the Biden administration, led by Gary Gensler, applied a regulation-by-enforcement approach. This resulted in lawsuits against multiple companies, such as Ripple and Coinbase, causing market incomprehension.
The GENIUS Act is a notable change in that direction. It establishes much-needed legal certainty across the companies and investors that have a stake in the digital asset space. Stablecoin issuers now understand exactly what it takes to stay within the confines of federal law.
Also Read: Trump Pushes GENIUS Act to Boost U.S. Position in Digital Assets
Crypto’s New Chapter
Led by Senator Cynthia Lummis, a long-time regulatory proponent of digital assets, the signing was described as a landmark. According to her, the legislation would secure the position of the U.S. dollar but enhance innovation and digital leadership in the global economy.
Brian Armstrong, the CEO of Coinbase, was responding to the news by declaring it a new era of crypto. He said that the current chapter of stablecoin regulations has concluded, though the following process is the development of a coherent structure of the market. He also accepted the regulatory deadline of the White House on September 30.
The crypto sector is currently targeting the Senate. The enactment of the CLARITY and Anti-CBDC Acts would fill in a more comprehensive digital asset regulation framework. These laws, in case of approval, would strengthen the position of the United States as the leader in the financial future.
Also Read: Breaking – U.S. House Greenlights GENIUS Act, XRP Price Explodes 16%
