U.S. President Donald Trump has signed the GENIUS Act, significantly changing cryptocurrency and stablecoin regulation in the country.
New U.S. Stablecoin Law
The GENIUS Act is a comprehensive regulatory framework for the U.S. stablecoin market. The law aims to establish a clear legal structure supporting cryptocurrency growth. President Trump emphasized the importance of positioning America as a leader in cryptocurrency. Republican lawmakers and crypto company leaders attended the signing ceremony, showcasing broad support for this move.
The Role of Banks in Stablecoin Issuance
The GENIUS Act opens opportunities for regulated banks to easily issue stablecoins, which boosts market participation and stability. Experts predict increased trust and adoption in the $250 billion stablecoin market. Financial industry leaders express optimism about the political and economic implications of this legislative act. As President Trump stated, "I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that's what we've done. The GENIUS Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins."
Comparison with EU Regulatory Framework
The GENIUS Act mirrors previous regulatory frameworks such as the EU MiCA regulation, which established digital asset standards. Such precedents often lead to short-term volatility but bolster long-term market confidence. Data suggests this act could drive growth in total value locked (TVL) and shift liquidity dynamics. Historically, regulatory certainty enhances adoption and market participation.
The signing of the GENIUS Act marks a significant step in cryptocurrency regulation in the U.S., providing clear rules for the growth of stablecoins and strengthening the country's position as a leader in this field.
