President Trump signs the Genius Act and establishes regulatory framework for the stablecoins

After being approved yesterday in the House of RepresentativesPresident Trump formalized the Genius Act, the first federal law applicable to the stablecoins sector in the US.

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• President Trump promulgates the first important crypto legislation in the US.
  
• The act was held by executives of Tether, Coinbase and Circle in the White House.
  
• The law requires full support in dollars and annual audits for stablecoins emitters.

The president of the United States, Donald Trump, signed on Friday the Genius Act, the first federal legislation that regulates the stablecoins in the country. It is a historical step for the digital asset sector, which for the first time has a clear and national legal framework.

The full name of the standard is GUIDING AND ESTABLISHING NATIONAL INNOVATION FOR US STABLECINS ACTalthough it is known by its acronym as Genius Act. Trump joked during the signature act saying that the name was chosen in his honor. The event was held in the White House, accompanied by high level executives of the crypto ecosystem.

“We take a giant step to cement American domain in global finances and crypto technology,” Trump declared. “This is a massive validation for the industry.”

What establishes the Genius Act?

The law creates a federal regulatory framework for Stablecoins, a category of cryptocurrencies designed to maintain parity with fiduciary currencies such as the US dollar. From its entry into force:

• Every stable issued in the US. UU. It must be backed 1: 1 by USD or other equivalent liquid assets.
• Issuers with a market capitalization greater than USD $ 50,000 million must undergo mandatory annual audits.
• Criteria for foreign issuers are established, with special attention to national security risks.

These measures seek to offer greater transparency and security to users, in addition to attracting large issuing the American regulated environment.

Presence of leaders of the crypto sector

Among those attending the act were outstanding figures of the crypto ecosystem. Paolo Ardoino, CEO of Tether, and Brian Armstrong, CEO of Coinbase, They were present at the ceremony. High executives also attended Circle and Digital Anchorage.

Jeremy Allaire, CEO of Circle, He expressed his enthusiasm before the event: “Rumbo to the White House for the historical firm of the Genius Law. Welcome to the Internet, Global Financial System!”

Nathan McCauley, CEO of Anchorage Digital, also celebrated the moment: “Genius is the first important legislation of digital assets approved by Congress after years of public and private effort. It is a bipartisan milestone.”

Coinbase He was represented by his CEO, his legal director Paul Grewal and his policy director Faryar Shirzad.

A key moment for the crypto sector in the US.

The law was approved on Thursday in the House of Representatives with 308 votes in favor and 122 against. He Senate He had already given his approval before. The way to its approval was not exempt from tensions, with some Republican legislators opposing procedure votes.

Trump took the opportunity to criticize the management of the previous administration: “During the Biden government they didn’t know what they talked about, and half of you were arrested for no reason.”

This new approach represents a clear turn in Washington’s posture towards the crypto ecosystem, especially after years of regulatory uncertainty.

Democratic criticism and concerns

Not everything was celebration. Democratic representative Maxine Waters expressed concern about the possible existence of conflicts of interest. He pointed out that the stablecoin World Liberty Financial Usdallegedly associated with the Trump family, it has grown to become one of the largest in the world.

“The law opens the door to foreign issuers who can represent national security threats, all to please people close to Trump’s circle,” Waters said in a statement.

Waters also criticized the possibility that sanctioned entities or with a doubtful history can operate under this framework.

A broader regulatory offensive

Earlier this year, Trump also signed a resolution to repeal a fiscal standard promoted in the last days of Biden’s mandate. This standard required custodians to collect and report user data to the tax authority.

Both decisions reflect a clear Trump administration strategy to position themselves as a defender of the crypto industry in the United States. The signature of Genius Act It could become a turning point for the development and institutional adoption of digital assets in the country.

Written article with the help of an AI content editor, edited by Angel Di Matteo / Diariobitcoin

Original image of Diariobitcoin, created with artificial intelligence, for free use, licensed under public domain.

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