U.S. President Donald Trump has enacted the GENIUS Act, establishing the first comprehensive regulatory framework for dollar-pegged stablecoins. The legislation passed with bipartisan support (308-122 in the House) and could transform these digital assets into everyday payment tools while reinforcing the dollar's global dominance.
New Rules for Digital Dollars
The law mandates stablecoin issuers to maintain 1:1 dollar reserves through liquid assets like U.S. Treasuries, with monthly transparency reports. Treasury Secretary Scott Bessent hailed the move as strengthening dollar demand and expanding global access to U.S. financial infrastructure.
Market Impact and Industry Growth
With the $260 billion stablecoin market projected to reach $2 trillion by 2028, major firms like Circle and Ripple are pursuing banking licenses to streamline operations. Standard Chartered analysts predict increased Treasury purchases could create new demand channels for U.S. government debt.
Global Concerns Emerge
While industry leaders celebrate, international critics warn of systemic risks. Italy's Economy Minister Giancarlo Giorgetti cautioned about threats to European financial stability, while academic Warwick Powell highlighted risks of private institutions using Treasuries as crypto collateral without sufficient oversight.
Domestic Debate Continues
Despite Trump's declaration of making America the "crypto capital of the world," critics argue the law lacks anti-money laundering safeguards and fails to prevent tech giants from issuing proprietary coins. Transparency International's Scott Greytak warned it could make U.S. markets vulnerable to exploitation by bad actors.
The legislation comes as major U.S. banks explore limited crypto pilots, signaling a potential transformation of traditional finance infrastructure.
