The crypto industry has reached a significant milestone with the signing of the Genius Act by U.S. President Donald Trump. This legislation provides legal backing for stablecoins and defines clear rules for their usage.
What the Genius Act Means for the Crypto Industry
The Genius Act legally recognizes stablecoins and sets clear regulatory frameworks for their application. These digital assets, typically tied to stable currencies like the U.S. dollar, are now positioned to play a larger role in payments. Brian Armstrong, CEO of Coinbase, stated that this law could replace the outdated financial system with one that is faster and more accessible to users worldwide.
Next Step: The Clarity Act
The crypto industry is now focusing on the Clarity Act, a broader bill aimed at fully regulating cryptocurrencies. President Trump has called on Congress to bring the bill to his desk by September 30. Armstrong noted that Coinbase will collaborate with other companies in the sector to advance this legislation.
Reactions from Traditional Finance Institutions
Traditional finance leaders have also recognized the impact of the Genius Act. Mastercard referred to the law as a turning point for stablecoins, highlighting the much-needed regulatory clarity and confidence it brings to the digital asset space. Executive Vice President Jesse McWaters emphasized the growing global momentum behind stablecoins and the importance of this legislation.
With the passage of the Genius Act, stablecoins have gained legal recognition in the U.S., laying the groundwork for the next wave of financial innovation that experts believe is imminent.
