Background on Donald Trump and His Involvement
Donald Trump, the former President of the United States, has been a proponent of crypto assets. His recent actions aim to facilitate the use of digital payment methods, making cryptocurrencies a common means for daily transactions and money transfers.
The GENIUS Act: A Milestone for Crypto Regulation
On Friday, President Trump signed a law known as the GENIUS Act to establish a regulatory framework for stablecoins tied to the U.S. dollar. This milestone could pave the way for cryptocurrencies to become a common method for everyday payments and money transfers.
The bill was approved by the House of Representatives with 308 votes in favor and 122 against, garnering support from nearly half of the Democratic members and the majority of Republicans. It had already been approved by the Senate.
Supporters of Crypto Currencies
This legislative victory is a win for crypto advocates who have long pushed for regulatory clarity to lend legitimacy to an industry that began in 2009 as a wild west digital frontier known for its innovation and speculative chaos.
“This signature is a massive validation of their hard work and pioneering spirit,” Trump stated during the signing ceremony, which included numerous government officials, crypto executives, and legislators. “It’s good for the dollar and it’s good for the country.”
Treasury Secretary Scott Bessent’s Perspective
Treasury Secretary Scott Bessent emphasized that the new technology would strengthen the dollar’s status as the world’s reserve currency, broaden access to the U.S. economy, and boost demand for U.S. Treasury bonds that back stablecoins.
Understanding Stablecoins
Stablecoins are designed to maintain a constant value, typically a 1:1 parity with the U.S. dollar, and their usage has surged, especially among crypto operators moving funds between tokens. The sector anticipates widespread adoption for instant payment sending and receiving.
The new law mandates that stablecoins be backed by liquid assets—like short-term U.S. Treasury notes and dollars—and that issuers disclose their reserve composition monthly.
Crypto companies and executives argue that this legislation will increase stablecoin credibility, encouraging banks, retailers, and consumers to utilize them for instant fund transfers.
The stablecoin market, currently valued at over $260 billion according to CoinGecko, could reach $2 trillion by 2028 with the new law, as estimated by Standard Chartered earlier this year.
Divided Opinions on the Law
The law’s approval concludes a lengthy lobbying effort by the industry, which donated over $245 million to last year’s elections to support pro-crypto candidates, including Trump, according to Federal Election Commission data.
President Trump, who has launched his own currency, thanked crypto executives for their campaign support, stating: “I promised to bring back American freedom and leadership and make the U.S. the crypto capital of the world, and that’s what we’ve done.”
Democrats and critics argue that the law should prevent large tech companies from issuing their own stablecoins, increasing an already powerful sector’s influence, enhancing anti-money laundering safeguards, and banning foreign stablecoin issuers.
“By failing to close known loopholes and protecting the U.S. dollar’s digital infrastructure, Congress risks turning the American financial system into a haven for criminals and adversarial regimes,” said Scott Greytak, Deputy Executive Director of Transparency International in the U.S.
Crypto Industry Reaches $4 Trillion Market Cap
On Friday, the crypto market cap reached $4 trillion, according to CoinGecko, marking a significant milestone reflecting its transformation from an emerging asset class to a central part of the global investment landscape.
The $4 trillion mark underscores how far the crypto industry has come from its speculative and marginal origins.
With growing interest from asset managers, new exchange-traded products, and increasing adoption among retail users and corporations, digital assets are increasingly shaping global financial conversations.
Alongside the GENIUS Act, there’s the CLARITY Act, which clearly defines the SEC and CFTC’s jurisdiction over digital assets. For years, both agencies have contested supervision of Bitcoin and altcoins; now, their boundaries are delineated on paper.
The third bill, known as the Anti-CBDC Act, strictly forbids any Federal Reserve initiative to launch a U.S. digital dollar. Privacy advocates celebrate this decision as a victory, while critics warn it shuts the door on government innovation.
After hitting a high of $123,000 earlier in the week, Bitcoin fell to $118,074 at 3:55 PM CDM on Sunday, losing 0.85% for the week. It was the only major crypto to lose; others saw gains.
- Dogecoin: 36.67%
- Ethereum: 26.87%
- Litecoin: 23.48%
- Ripple: 23.45%
- Cardano: 18.12%
- Solana: 13.02%
