For those following the intersection of politics and cryptocurrency, there’s been a major enforcement in the world of digital coins as President Donald Trump recently signed the GENIUS Act into law. Recognised as a critical advancement, this is projected to significantly change the American cryptocurrency policy and play a pivotal role in what is considered an underestimated currency.
Trump’s Impact on Crypto
From the halls of the White House, President Trump addressed the crowd during the signing ceremony, stating, “I promised that we would restore American liberty and leadership, and position the United States as the cryptocurrency capital of the world; and that’s exactly what we’ve accomplished.” This shows the commitment from the commander in chief to embrace and accelerate the development of the crypto industry in the country.
Understanding The GENIUS Act
The GENIUS Act establishes a structure that allows private enterprises to issue stablecoins – a cryptocurrency variant that is tethered to the value of another currency, or financial asset such as the U.S. dollar. This legislation essentially creates a pathway for the broader adoption of such coins and their potential validity in the financial world.
Relevance of Stablecoins in the Market
President Trump communicated the importance of the prospect of stablecoins, indicating, “This new framework will liberate the potential of stablecoins. It very well may prompt the greatest revolution in financial technology since the internet itself.” Given the volatile nature of several cryptocurrencies, the increased acceptance and use of stablecoins could provide the stability needed within the crypto markets.
What Key Players Are Saying
The industry professionals have welcomed the passing of the GENIUS Act, with Securities and Exchange Commission Chair Paul Atkins, an appointee of President Trump and a known supporter of crypto, labelling the event as a landmark progress for crypto assets, capital markets, and our nation. He further stated, “The GENIUS Act offers necessary direction for a vital segment of the nascent crypto asset ecosystem.”
Impact on Digital Coins
This historic signing has also impacted the cryptocurrency markets. Ether, commonly known as the second-largest cryptocurrency following Bitcoin, saw its prices rise by approximately 2% to over $3,500, amidst optimism that the regulation that’s friendly to crypto, could boost the validity of digital assets. Bitcoin’s trading price, though slightly lower at around $118,000, remains strong after recently topping the $120,000 mark.
Implications for Crypto-Related Businesses
Regarding corporate impacts, shares of cryptocurrency-related businesses like Circle Internet Group, the largest US stablecoin issuer, stayed relatively steady in after-hours trading. This was also the case for shares of other crypto-related companies, including Strategy, MARA Holdings, and Coinbase Global – the largest cryptocurrency exchange in the U.S.
More Regulative Measures Incoming
With the signing of the GENIUS Act, a couple of other bills on crypto passed by the House this week are expected to reach the President’s desk pending Senate approval. They are the CLARITY Act, which intends to establish a regulative framework for cryptocurrency, and the Anti-CBDC Surveillance State Act that aims to prevent the Federal Reserve from issuing a central bank digital currency.
Final Words
The recent surge in the credibility and validity of digital and crypto assets owes a great deal to government support and regulatory frameworks, such as the recently signed GENIUS Act. With more legislative measures anticipated, and continued support from key regulatory players, it is likely we will see the continued growth of the crypto industry.
