US President Donald Trump has signed the GENIUS Act, a law that creates a regulatory framework for stablecoins. This move could pave the way for dollar-based cryptocurrencies to be used for making payments and moving money.
The law, which passed in the House of Representatives with 308 votes to 122, aims to legitimize the use of cryptocurrencies and encourage banks, retailers, and consumers to adopt them. The crypto industry has donated millions to support pro-crypto candidates, including Trump.
Stablecoins are designed to maintain a constant value pegged to the US dollar. Under the new law, Standard Chartered estimates that the stablecoin market could grow to $2 trillion by 2028.
However, critics argue that the law should include stronger anti-money laundering protections and prohibit foreign stablecoin issuers. They fear that the growing influence of the sector could make the US financial system vulnerable to exploitation.
The law is seen as a victory for the crypto industry, which has pushed for such legislation for years. It may help buttress the dollar’s status as the global reserve currency and expand access to the dollar economy for millions across the globe.
Source: https://www.dw.com/en/us-trump-signs-law-paving-way-for-dollar-based-stablecoins/a-73332639