U.S. President Trump signed the first federal bill on stablecoin regulation, calling it "an important step to consolidate the United States' dominance in global finance and encryption technology." This is also a major win for the digital asset industry.
“The GENIUS Act establishes a clear and concise regulatory framework that will unlock the tremendous potential contained in U.S. dollar stablecoins,” Trump said at the White House signing ceremony on Friday. “This may become the greatest revolution in financial technology since the birth of the Internet.”
Trump signs bill
The bill sets regulatory rules for U.S. dollar-pegged stablecoins, including requiring issuing institutions to hold an equivalent amount of short-term Treasury securities or other equivalent assets in reserves overseen by state or federal regulators. Proponents believe this will clear the way for widespread adoption of digital assets in the financial sector.
Several unnamed senior officials at the U.S. Treasury Department said earlier on Friday that the bill would bring clearer regulatory expectations to stablecoin issuers, facilitate innovation and adoption of digital assets, and consolidate the dominance of the U.S. dollar. They said the bill would impose strict requirements on issuers, requiring stablecoins to be backed by cash or short-term U.S. Treasuries.