The recent signing of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act can only be described as a historic moment for the broader cryptocurrency sector. It is a further acknowledgement of the commitment of the pro-crypto administration of Donald Trump, the 47th President of the United States (POTUS). All Protocol Duly Observed For US GENIUS Act The US has welcomed its first significant piece of legislation since Trump assumed the presidency for the second time. The GENIUS Act, signed into law by the president, provides regulatory clarity for USD-pegged stablecoin issuers, including Tether, Circle, and Ripple. The GENIUS Act was first passed in the Senate about a month ago, with a decisive bipartisan vote of 68-30. Next was the House of Representatives, where Republicans maintain a narrow majority over Democrats. To ensure that the bill receives the required support, Trump urged members of the House to move “LIGHTNING FAST” to send the bill to his desk, emphasizing, “NO DELAYS, NO ADD ONS.” America Enters a New Digital Finance Era Fast forward to the present day, America has taken a significant step forward in digital finance leadership by signing the bill into law. Notably, the US House also passed the CLARITY and Anti-CBDC Acts. For a nation that has battled regulatory uncertainty for years and faced criticism for it , the US has struck gold with these regulatory frameworks. Notably, the US Securities and Exchange Commission (SEC), under Gary Gensler’s leadership, has leveraged a regulation-by-enforcement approach that has triggered backlashes from crypto firms. American cryptocurrency exchange Coinbase has been unable to stop talking about the Commission’s regulatory chaos . What Does the GENIUS Act Demand? Now that regulatory clarity for stablecoins has been established through the GENIUS Act, issuers are required to maintain a strict 1:1 reserve backing. Additionally, each digital dollar should be fully backed by a U.S. dollar or an equivalent low-risk asset. All Issuers in the region would be required to obtain either federal or state licenses and comply with Anti-Money Laundering (AML) protocols. In addition, stablecoin issuers would be restricted from using customer reserves for anything beyond redemption or safe investments, such as short-term Treasury securities. This is intended to reduce systemic risks and protect investors’ funds. Precisely, it would avoid the kind of shadow banking issues that have plagued parts of the financial sector. The post GENIUS Act Marks the First Major Crypto Legislation Under Trump appeared first on TheCoinrise.com .
