The signing of the GENIUS Act by U.S. President Donald Trump represents a significant step in shaping the country's cryptocurrency policy, establishing clear regulatory frameworks for stablecoins.
Significance of the GENIUS Act Signing
The law signed by Trump creates a standardized regulatory environment for stablecoins, enhancing their legal recognition and use in the U.S. financial system. This also marks a significant pivot in Trump's stance on cryptocurrencies, facilitated by Bo Hines, head of Trump's Digital Asset Advisory Committee.
Criticism and Support for the New Law
Reactions to the law varied. Some political figures, such as Rep. Marjorie Taylor Greene, expressed concerns about potential consequences, claiming the law opens the way for centralized digital currencies. She stated: "This bill regulates stablecoins and provides for the backdoor Centralized Bank Digital Currency." Meanwhile, Trump emphasizes legislative achievements, framing criticism as counterproductive.
Global Impact of New Regulation
The GENIUS Act also aligns with international regulatory trends for cryptocurrencies similar to the EU's MiCA, enhancing the legitimacy and compliance of the stablecoin industry. This may influence the establishment of new regulatory standards both in the U.S. and abroad, fostering innovation in digital finance.
Trump's signing of the GENIUS Act could significantly advance U.S. cryptocurrency policy, providing clearer frameworks for stablecoins and potentially influencing global regulatory practices.
