Trump Signs the GENIUS Act, Revolutionizing US Crypto Industry
In what can be considered a major breakthrough for the cryptocurrency industry in the United States, President Donald Trump gave his seal of approval to the GENIUS Act on a recent Friday. This move by the President ushers in a new era in American crypto policy, demonstrating the country’s willingness to adopt and adapt to the revolutionary technology that is cryptocurrency.
Key Points of the GENIUS Act
The GENIUS Act is designed to create a regulatory system for stablecoins. Stablecoins are a type of cryptocurrency whose value is tied to a stable financial asset such as the US dollar, thus minimising the risk of dramatic fluctuations in its value. By establishing this framework, the GENIUS Act essentially sets the stage for a more widespread use of stablecoins.
In addition to the GENIUS Act, the House of Representatives has passed two more bills in what it refers to as the “Crypto Week.” The CLARITY Act, which seeks to define a regulatory framework for cryptocurrencies, and the Anti-CBDC Surveillance State Act, aimed at preventing the Federal Reserve from issuing its own digital currency, are waiting for approval from the Senate before they can be presented to Trump for his signature.
Trump’s Stance in Making the US a Crypto Capital
At the signing ceremony, President Trump clearly stated his ambition of making the United States the central hub of the world’s crypto activity. ‘We pledged to bring back American liberty and leadership and establish the United States as the crypto capital of the world, and that’s what we’ve done,’ he stated. He believes that this could potentially be the greatest innovation in financial technology since the creation of the Internet.
SEC Chair’s Endorsement of the GENIUS Act
The passage of the GENIUS Act into law was hailed by Paul Atkins, the Chair of the Securities and Exchange Commission (SEC). Atkins, who was appointed by President Trump and is known for his pro-crypto stance, labelled the signing of the Act into law as a monumental step forward for crypto assets, financial markets, and the country. He added, ‘The GENIUS Act provides necessary guidance for a crucial element of the emerging crypto asset ecosystem.’
Impact on Cryptocurrency Prices
The signing of the GENIUS Act has stirred up the cryptocurrency market. The price of Ether, the cryptocurrency that ranks second only to Bitcoin, experienced a rise in value, indicative of the optimism surrounding such crypto-friendly legislations. However, the price of Bitcoin showed a nominal drop.
Companies associated with cryptocurrency like Circle Internet Group, Strategy, MARA Holdings, and Coinbase Global saw little change in their shares during after-hours trading.
Outlook for Future Crypto Legislations
In conclusion, the signing of the GENIUS Act has set a precedent for future governmental treatment of cryptocurrencies. Two other important legislations, the CLARITY Act, and the Anti-CBDC Surveillance State Act, are awaiting Senate approval. Once passed, they can be expected to have a major impact on the digital currency scenario in the U.S, pushing the nation closer to becoming the global hub of cryptocurrency activity.
This article was updated with more recent information to reflect changes in the cryptocurrency prices.
