The GENIUS Act creates rules for entities that difficulty stablecoins, whose worth is tied to an asset just like the US greenback. These guidelines govern who’s allowed to difficulty stablecoins, how they should keep reserves, what occurs within the case of chapter, and an obligation to stop cash laundering.
Trump congratulated members of the crypto trade who attended the signing ceremony on the White Home, together with the CEOs of Coinbase and Tether. He drew a stark distinction between the Biden administration, which he referred to as “a vicious group of individuals” who have been “making an attempt to crush your trade,” and himself. “I obtained you guys out of a lot hassle,” Trump stated.
“Your entire crypto group, for years, you have been mocked and dismissed and counted out,” Trump stated. “However this signing is a large validation of your exhausting work and your pioneering spirit.” He added that he selected to again crypto “at an early stage” as a result of it would make the US greenback stronger. “And I additionally did it for the votes,” he stated to a spherical of laughter from the viewers, “since you did come out and vote.”
”This signing is a large validation of your exhausting work and your pioneering spirit”
The invoice handed by each chambers of Congress with bipartisan help, with backers saying it creates needed safeguards for the trade and retains the US aggressive within the house. Nevertheless it additionally noticed opposition from different members on each side. Sen. Josh Hawley (R-MO) criticized the bill as “an enormous giveaway to Large Tech,” citing issues it could incentivize corporations that difficulty stablecoins to gather extra monetary information on shoppers. In a speech on the Senate floor, Senate Banking Committee Rating Member Elizabeth Warren (D-MA), stated that the invoice “is riddled with loopholes and comprises weak safeguards for shoppers, nationwide safety, and monetary stability.”
Warren and other Democrats have additionally warned that legitimizing the stablecoin trade by the laws may bolster a possible avenue of corruption for Trump. Trump’s household is concerned in crypto agency World Liberty Monetary that launched its personal stablecoin, USD1. The White House has said the enterprise creates no conflicts for the president as his belongings are in a belief managed by his children.
“Via his crypto companies, President Trump has created an environment friendly means to commerce presidential favors like tariff exemptions, pardons, and authorities appointments for a whole lot of tens of millions—maybe billions—of {dollars} from international governments, from billionaires, and from massive firms,” Warren stated. “That is the one biggest corruption scandal in American historical past and, by passing the GENIUS Act, the Senate is about to not solely bless this corruption, however to actively facilitate its enlargement.”
As Trump signed the GENIUS Act, he tried to steer consideration to what he’s billed as “an enormous scandal” for his predecessor. “This isn’t an autopen, by the way in which.” Trump quipped.