President Trump signed the GENIUS Act into law on Friday, according to Reuters. The law establishes the first U.S. regulatory framework for dollar-pegged cryptocurrencies known as stablecoins. Trump called the law a “validation” of crypto’s pioneering role, adding that it would strengthen the dollar and national leadership in digital finance. The law mandates that stablecoins be backed by liquid assets, such as U.S. dollars and Treasuries, with monthly public reserve disclosures. Crypto firms, including Circle and Ripple, are pursuing banking licenses to reduce costs by eliminating the need for intermediary banks. Critics argue the law fails to restrict big tech stablecoins, strengthen anti-money laundering rules, or bar foreign issuers. Backers of the bill say it could boost demand for short-term U.S. government debt as stablecoin issuers must hold more of it to back their assets. Trump launched the $TRUMP meme coin in January and partly owns crypto company World Liberty Financial.
