US President Donald Trump has just signed the Genius Act, an important law to establish a legal framework for stablecoin a currency fixed at the value of legal currency such as the USD.
This is the result of a long-term movement movement by businesses and individuals in the cryptocurrency industry, marking a major step forward in the legalization of digital assets in the US.
The Genius Act was passed by the Senate earlier and approved by the House on July 17. Immediately after that, Mr. Trump officially signed the law at an event attended by many government officials, lawmakers and representatives of the financial technology industry on July 18 (local time).
Taking this opportunity today is a great recognition of your hard work and pioneering spirit. This is beneficial for both the US dollar and our country, Trump said at the event.
The law requires token stablecoin to be backed by highly liquid assets such as the US dollar or short-term US government bonds. At the same time, stablecoin issuers are also required to announce their collateral components every month to ensure transparency. This is considered a necessary step to increase the reliability of stablecoin in the financial system.
US Treasury Secretary Scott Bessent said the law would help strengthen the US dollar as a global reserve currency, while boosting demand for US government bonds - an asset used as collateral for stablecoin. According to Standard Chartered, the stablecoin market is currently worth more than 260 billion USD and could reach 2,000 billion USD by 2028.
Business people believe that the new law will encourage banks, retailers and consumers to use stablecoin to transfer money and pay, thereby popularizing digital assets in daily life. A popular stablecoin typically has a conversion price of $1 per share, allowing users to switch flexibly between widgets and minimize price fluctuations.
President Trump also expressed his gratitude to the digital community for backing him in last year's election campaign. According to the US Federal Election Commission, the cryptocurrency industry spent more than $245 million in the 2024 elections on candidates who were pro-digital.
However, the law still faced opposition from some Democratic lawmakers and critics. They said it is necessary to add a regulation prohibiting major technology companies from issuing their own stablecoin, to avoid concentrating power. At the same time, it is necessary to tighten provisions related to anti-money laundering and prevent foreign organizations from issuing stablecoin in the US.
