US President Donald Trump has signed a bill that creates the first clear legal framework for the use of cryptocurrencies in the country.
Significance of the New Law
The law introduces strict guardrails for the use of stablecoins. Only fully compliant institutions, such as licensed corporations and banks, are permitted to issue stablecoins pegged to the US dollar. The laws pertain to reserves, disclosures, and oversight.
Reactions from Financial Institutions
Financial powerhouses like JPMorgan, Citigroup, and Bank of America are reportedly preparing to launch their own stablecoin products. It is also reported that companies like Amazon and Apple are exploring ways to integrate stablecoin infrastructure into their ecosystems.
Future of Stablecoins in the US
According to Paolo Ardoino, CEO of Tether, this law represents more than just regulation—it’s a foundation for stablecoins within the regulated US financial system. This may indicate that the stablecoin sector is transitioning from a niche innovation to a core aspect of the digital economy.
The signing of the cryptocurrency law marks an important step towards the integration of stablecoins into the US financial system.
