On Friday, U.S. President Donald Trump signed the GENIUS Act, establishing the first federal framework for dollar-pegged stablecoins. The House approved the bill 308–122, with support from nearly half of the Democrats and most Republicans, after earlier Senate passage.
Stablecoins aim to hold a constant value, typically at a 1:1 peg with the U.S. dollar, and have surged in use for crypto traders moving funds between tokens. Supporters hope the new law will turn them into everyday tools for instant payments.
The GENIUS Act requires all stablecoin issuers to back their tokens with liquid assets such as U.S. dollars and short-term Treasury bills, and to publish monthly disclosures on their reserve composition. Treasury Secretary Scott Bessent said this will strengthen the dollar's role as the global reserve currency and boost demand for U.S. debt.
For young entrepreneurs in emerging markets and digital nomads, stablecoins promise faster, lower-cost cross-border transfers, bypassing traditional banking rails and cutting settlement times from days to seconds.
Crypto advocates celebrated the law as a milestone for legitimacy. The stablecoin market, currently valued at around 260 billion dollars, could expand to 2 trillion dollars by 2028, according to Standard Chartered estimates.
Not everyone is convinced. Italy's economy minister warned of risks to Europe’s financial stability, and analysts argue that converting U.S. Treasuries into private digital money could create a fragile and opaque network. Domestic critics also called for stronger anti–money laundering measures, limits on big tech issuers, and restrictions on foreign stablecoins to prevent misuse by criminals and rival regimes.
Major U.S. banks are already exploring pilot crypto programs and partnerships, while firms like Circle and Ripple seek banking licenses to streamline their operations. Backers believe stablecoin issuers will drive fresh demand for short-term government debt.
Alongside the GENIUS Act, President Trump has pursued other crypto initiatives, including a strategic bitcoin reserve and the launch of a meme coin called TRUMP, underlining his vision to make the United States the world’s crypto capital.
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Trump signs stablecoin law, pushing for crypto's mainstream adoption
cgtn.com
