Trump signs stablecoin bill into law, capping string of ‘Crypto Week’ victories
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Trump signs stablecoin bill into law, capping string of ‘Crypto Week’ victories
President Trump on Friday signed into law a bill that establishes the first federal framework for dollar-backed stablecoins. Two other crypto bills also passed through the House this week, the CBDC Anti-Surveillance State Act and the Clarity Act. The legislation is also expected to unleash a wave of new stablecoin entrants as traditional companies ranging from banks to megaretailers consider whether to issue their own coins. It bans members of Congress and their families from earning profits from stablecoins, but not Trump and his family, an omission that irked some Democrats and slowed progress on the legislation earlier this spring.
“I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that’s what we’ve done,” Trump said during a signing ceremony for the GENIUS Act at the White House.
Two other crypto bills also passed through the House this week, the CBDC Anti-Surveillance State Act and the Clarity Act, which served as additional wins for the crypto industry.
They prohibit the creation of central bank digital currencies and assign oversight over all digital assets except stablecoins to either the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC).
Both will now go to the Senate, where their ultimate fates are still unknown.
The passage of all three bills came after a series of roadblocks and delays as GOP leaders struggled to bring some Republican holdouts in line during what has been dubbed “Crypto Week” by backers of the legislation.
President Trump at the White House. (AP Photo/Alex Brandon) · ASSOCIATED PRESS
Trump is also deepening his own financial involvement in cryptocurrencies with several separate ventures. They include World Liberty Financial, a new crypto startup backed by Trump and his sons that has already launched its own US-dollar-pegged stablecoin (USD1) in partnership with BitGo.
Stocks with crypto ties have been surging recently as investors anticipated the moves in the nation’s capital, notably Coinbase (COIN), Robinhood (HOOD), and newly public stablecoin issuer Circle (CRCL).
Read more: Can you buy crypto with a credit card? See the pros and cons.
The GENIUS Act signed into law by Trump on Friday outlines how US companies can issue and manage dollar-backed stablecoins for payments, giving those digital assets a massive stamp of approval that is expected to encourage wider adoption.
It bans members of Congress and their families from earning profits from stablecoins, but not Trump and his family, an omission that irked some Democrats and slowed progress on the legislation earlier this spring.
Jeremy Allaire, CEO and co-founder of stablecoin issuer Circle Internet Group, celebrates ringing the opening bell on June 5, the day of the company’s IPO. (Reuters/Brendan McDermid) · REUTERS / Reuters
Between Washington and Wall Street, expectations are riding high for what this legislation ultimately brings.
A senior Treasury official said growth in the $260 billion stablecoin market over the months and years ahead will have a significant impact on the dominance of the US dollar and demand for US debt.
The legislation is also expected to unleash a wave of new stablecoin entrants as traditional companies ranging from banks to megaretailers consider whether to issue their own coins.