Trump signs the GENIUS Act to establish a stablecoin regulatory framework, opening the era of cryptocurrency payments.

President Donald Trump signed the "Guidance And Establishment of National Innovation of US Stablecoin Act" (GENIUS Act) on Friday, officially establishing a regulatory framework for stablecoins. This milestone legislation may pave the way for digital assets to become a daily payment tool. The bill passed in the House of Representatives with an overwhelming majority of 308 votes in favor and 122 votes against, receiving support from nearly half of the Democratic lawmakers and the vast majority of Republican lawmakers, and had already been approved by the Senate. For the cryptocurrency industry, this legislation is considered a major breakthrough. Since the birth of Bitcoin in 2009, the field of digital assets has been long regarded as a "wild west of innovation and speculation." This regulatory framework will now inject legitimacy into the industry. Trump emphasized during the signing ceremony, "This is an affirmation of the spirit of innovation, both strengthening the position of the US dollar and benefiting the country and the people." Dozens of government officials, executives from crypto companies, and lawmakers were present to witness this moment. US Treasury Secretary Scott Benson pointed out in a statement that the new regulations will strengthen the global reserve currency status of the US dollar, expand the coverage of the US dollar economy, and stimulate demand for US Treasury bonds. Stablecoins, as digital assets pegged 1:1 to the US dollar, have expanded their use cases from fund transfers among cryptocurrency traders to mainstream instant payment fields. According to CoinGecko data, the current market size of stablecoins exceeds $260 billion, and Standard Chartered Bank predicts that with the development under the new regulations, it may surpass $2 trillion by 2028. The new law requires stablecoin issuers to fully reserve with assets such as the US dollar and short-term government bonds, and publicly disclose the composition of assets monthly. Cryptocurrency companies believe that transparent regulation will increase market trust and promote wider adoption by banks, retailers, and consumers. Several institutions, including Circle and Ripple, have applied for banking licenses, attempting to reduce operating costs by bypassing traditional intermediaries. Industry lobbying played a significant role in this legislation. Federal Election Commission data shows that the cryptocurrency industry invested over $2.45 billion in the 2024 elections, supporting candidates like Trump who are pro-cryptocurrency. Trump, who has issued his own cryptocurrency, TrumpCoin, and participated in creating World Liberty Financial, reiterated his commitment at the ceremony: "We will make America the center of cryptocurrency once again." Despite gaining support from both parties, the bill has been questioned by Democrats and critics. Opponents argue that the legislation does not limit tech giants from issuing their stablecoins, leading to potential risks of industry monopolies. They also criticize the lack of strong anti-money laundering measures and the failure to prohibit foreign stablecoin issuers from entering the market. Scott Gretak, Deputy Executive Director of Transparency International USA, warned: "Regulatory loopholes may turn the US financial system into a safe haven for criminals and hostile forces." The clarification of regulations is driving traditional financial institutions to enter the cryptocurrency field. Reports indicate that several US banks have started internal discussions and are planning to enter the market through pilot projects or limited transactions. Analysts suggest that the growing demand for short-term government bonds by stablecoin issuers may inject new vitality into the US debt market. This legislation is an important part of Trump's cryptocurrency policy reform. In March of this year, he signed an executive order to establish a strategic Bitcoin reserve. With the GENIUS Act in place, the US is accelerating the construction of a complete digital financial system from a strategic Bitcoin reserve to the daily use of stablecoins.