Donald Trump's signs new 'stablecoin law'

US President Donald Trump has recently signed a law to regulate stablecoins, cryptocurrencies pegged to the US dollar, in a move that could push them into everyday use for payments in the US.

The Genuine Stablecoin Act (GENIUS Act), passed with strong support in the House of Representatives, sets clear rules for issuers, requiring stablecoin issuers to maintain full cash reserves or short-term Treasury bills backing their tokens, with mandatory monthly public disclosures of these reserves.

According to a report by Reuters on the matter, supporters say this will boost trust in stablecoins, which are widely used in crypto trading but have faced scrutiny over risks like money laundering and shaky financial backing. 

Trump hailed the law as a win for innovation, telling industry leaders at the signing: "This is good for the dollar and good for the country." Treasury Secretary Scott Bessent added that stablecoins could strengthen the dollar's global dominance by expanding access to dollar-based transactions.

As per the Reuters report, market analysts project that the $260 billion stablecoin market could expand to $2 trillion by 2028 under the new regulatory structure. The crypto industry heavily supported the bill's passage, with reports indicating over $245 million was spent supporting pro-cryptocurrency candidates in the 2024 election cycle.  

However, the legislation has drawn criticism from financial transparency advocates. A Transparency International US spokesperson expressed concern that "insufficient safeguards against money laundering and unrestricted corporate issuance could create systemic vulnerabilities."  

While this law is a big step toward making cryptocurrencies more mainstream in the US, debates continue regarding the appropriate balance between innovation and financial security in digital asset markets.