Trump Signs First Major Crypto Bill, The Genius Act, Into Law

In a landmark triumph for nan crypto industry, President Donald Trump signed nan GENIUS Act into law, establishing a regulatory model for a type of integer rate known arsenic stablecoins.

The GENIUS Act creates rules for entities that rumor stablecoins, whose worth is tied to an plus for illustration nan US dollar. Those rules govern who’s allowed to rumor stablecoins, really they request to support reserves, what happens successful nan lawsuit of bankruptcy, and an responsibility to forestall money laundering. 

Trump congratulated members of nan crypto manufacture who attended nan signing ceremonial astatine nan White House, including nan CEOs of Coinbase and Tether. He drew a stark opposition betwixt nan Biden administration, which he called “a vicious group of people” who were “trying to crush your industry,” and himself. “I sewage you guys retired of truthful overmuch trouble,” Trump said.

“The full crypto community, for years, you were mocked and dismissed and counted out,” Trump said. “But this signing is simply a monolithic validation of your difficult activity and your pioneering spirit.” He added that he chose to backmost crypto “at an early stage” because it will make nan US dollar stronger. “And I besides did it for nan votes,” he said to a information of laughter from nan audience, “because you did travel retired and vote.”

“This signing is simply a monolithic validation of your difficult activity and your pioneering spirit”

The measure passed done some chambers of Congress pinch bipartisan support, pinch backers saying it creates basal safeguards for nan manufacture and keeps nan US competitory successful nan space. But it besides saw guidance from different members connected some sides. Sen. Josh Hawley (R-MO) criticized nan bill arsenic “a immense giveaway to Big Tech,” citing concerns it would incentivize companies that rumor stablecoins to cod much financial information connected consumers. In a reside connected nan Senate floor, Senate Banking Committee Ranking Member Elizabeth Warren (D-MA), said that nan measure “is riddled pinch loopholes and contains anemic safeguards for consumers, nationalist security, and financial stability.”

Warren and different Democrats person besides warned that legitimizing nan stablecoin manufacture done nan authorities could bolster a imaginable avenue of corruption for Trump. Trump’s family is progressive successful crypto patient World Liberty Financial that launched its ain stablecoin, USD1. The White House has said nan task creates nary conflicts for nan president arsenic his assets are successful a spot managed by his kids. 

“Through his crypto businesses, President Trump has created an businesslike intends to waste and acquisition statesmanlike favors for illustration tariff exemptions, pardons, and authorities appointments for hundreds of millions—perhaps billions—of dollars from overseas governments, from billionaires, and from ample corporations,” Warren said. “This is nan azygous top corruption ungraded successful American history and, by passing nan GENIUS Act, nan Senate is astir to not only bless this corruption, but to actively facilitate its description .”

As Trump signed nan GENIUS Act, he tried to steer attraction to what he’s billed arsenic “a large scandal” for his predecessor. “This is not an autopen, by nan way.” Trump quipped.