In a bold move set to redefine everyday transactions, U.S. President Donald Trump signed the GENIUS Act, establishing a regulatory framework for dollar-pegged stablecoins. This new law could soon make digital dollars as common as cash or cards, opening the door to quick and seamless crypto payments. 🚀
The act requires stablecoins — digital assets designed to maintain a 1:1 peg with the U.S. dollar — to be fully backed by liquid assets like U.S. dollars and short-term Treasury bills. Issuers must also publicly disclose their reserve composition on a monthly basis, a step aimed at boosting transparency and trust within the crypto ecosystem.
This development is celebrated by crypto enthusiasts who have long pushed for clearer regulations since the industry’s early days in 2009. Optimistic estimates suggest that the stablecoin market, which is currently valued at over $260 billion, could skyrocket to as much as $2 trillion by 2028.
However, not everyone is cheering. Critics warn that using U.S. Treasury bonds as collateral for digital dollars might introduce unforeseen financial risks. Concerns have also been raised about potential loopholes that could let big tech companies jump into the stablecoin arena, potentially shaking up market stability.
Meanwhile, major U.S. banks are exploring pilot projects and partnerships in the crypto space, while firms like Circle and Ripple are pursuing banking licenses to streamline their operations. Trump, who has also launched his own meme coin and backed a strategic bitcoin reserve, recently thanked industry executives for their support, reaffirming his vision of making the United States a global leader in digital finance.
As the crypto landscape evolves, this stablecoin law marks an exciting yet cautious step into mainstream finance. The journey towards a digital dollar era is just beginning, and all eyes are on how these changes will shape the future of money.
Reference(s):
Trump signs stablecoin law, pushing for crypto's mainstream adoption
cgtn.com
