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President Trump has made history by signing the GENIUS Act into law, marking a crucial milestone in the regulation of stablecoins in the United States. This significant move establishes the first federal framework for governing digital assets and sets a new precedent for the global financial system.
The newly enacted legislation stipulates that all stablecoin issuers must maintain full reserves backed by USD or equivalent liquid assets. Additionally, entities with a market capitalization exceeding $50 billion will be required to undergo annual audits. The GENIUS Act also outlines new compliance standards for foreign stablecoin issuers operating within the U.S. borders.
The signing of this act signals a significant shift in the United States’ strategy towards digital assets and global financial leadership. Trump emphasized the stark contrast between his administration’s approach and that of previous administrations, citing confusion and regulatory ambiguity as major concerns. Industry leaders present at the signing ceremony echoed these sentiments, highlighting the importance of this legislation.
This groundbreaking legislation serves as a foundation for further crypto-related bills currently advancing through Congress. The passage of the GENIUS Act follows Trump’s repeal of a cryptocurrency tax rule involving custodial brokers. By formalizing stablecoin rules and expanding oversight mechanisms, the act demonstrates growing consensus on digital asset regulation in the political sphere.
The signing of the GENIUS Act will have far-reaching implications for the financial industry as it provides clarity and consistency to issuers operating within U.S. borders.
Source: coincentral.com
