Photo: Alamy
Last week, President Trump signed new legislation into law that will pave the way for a “digital currency revolution” by strengthening the U.S. dollar and elevating digital assets and crypto.
Trump has signed several major pieces of legislation in the six months since he took office, ranging from the critical “Laken Riley Act” to the “One Big Beautiful Bill.” On Friday, the GENIUS Act became law, becoming an impactful echo of the president’s previous executive orders to promote digital asset growth in the U.S.
“This bill provides the fast-growing stablecoin market with the regulatory clarity it needs to grow into a trillion-dollar industry,” said U.S. Treasury Secretary Scott Bessent in an official statement.
He continued, “Stablecoins represent a revolution in digital finance. The dollar now has an internet-native payment rail that is fast, frictionless, and free of middlemen. This groundbreaking technology will buttress the dollar’s status as a global reserve currency, expand access to the dollar economy for billions across the globe, and lead to a surge in demand for U.S. Treasuries, which back stablecoins.”
According to the White House, the GENIUS Act provides regulatory protection for stablecoins, which will require issuers to make monthly disclosures of their reserves. It also requires 100 percent of reserves to be backed with something like “U.S. dollars or short-term Treasuries.”
What is a stablecoin? According to Coinbase, it is a type of cryptocurrency whose value is tied to another asset, like the U.S. dollar. Like the name suggests, these crypto coins try to keep a “stable value” regardless of market volatility.
“Stablecoin issuers must comply with strict marketing rules to protect consumers from deceptive practices. Crucially, they are forbidden from making misleading claims that their stablecoins are backed by the U.S. government, federally insured, or legal tender,” per the White House.
By signing the GENIUS Act into law, President Trump aims to ensure that the U.S. dollar becomes the dominant reserve currency for digital assets worldwide.
“Digital Assets are the future, and our Nation is going to own it,” Trump remarked about the bill, upon its initial passage in the U.S. Senate. “We are talking about MASSIVE Investment, and Big Innovation.”