The signing of the 'Genius Act' by U.S. President Donald Trump marks a significant step in regulating cryptocurrencies, particularly stablecoins. This law aims to provide greater clarity and security in the crypto industry.
Goals of the 'Genius Act'
The 'Genius Act' is aimed at solidifying the U.S. leadership in the cryptocurrency sector and creating a clear regulatory framework for stablecoins. Donald Trump, who previously expressed skepticism about cryptocurrencies, showed support for this initiative, as highlighted by his statement:
"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." - President Donald Trump.
Key Provisions on Stablecoins
The new law requires stablecoin issuers to back tokens one-to-one with liquid assets, enhancing consumer protection. This applies to assets such as USDC and infrastructure protocols like Ethereum. These measures aim to provide greater transparency and security in the market.
Industry Outlook and Expectations
With the 'Genius Act' coming into effect, increased institutional participation and altered liquidity patterns in the decentralized finance (DeFi) sector are anticipated. Similar regulatory initiatives in other regions have previously boosted asset credibility. The new regulation is expected to drive growth and innovation within the crypto industry.
The signing of the 'Genius Act' is a significant move towards creating a functional regulatory climate for stablecoins in the U.S. This may serve as a foundation for further achievements in cryptocurrency and strengthen the country's standing on the international stage.