The GENIUS Act creates rules for entities that concern stablecoins, whose worth is tied to an asset just like the US greenback. These guidelines govern who’s allowed to concern stablecoins, how they should preserve reserves, what occurs within the case of chapter, and an obligation to stop cash laundering.
Trump congratulated members of the crypto business who attended the signing ceremony on the White Home, together with the CEOs of Coinbase and Tether. He drew a stark distinction between the Biden administration, which he referred to as “a vicious group of individuals” who had been “attempting to crush your business,” and himself. “I obtained you guys out of a lot hassle,” Trump stated.
“The whole crypto neighborhood, for years, you had been mocked and dismissed and counted out,” Trump stated. “However this signing is an enormous validation of your arduous work and your pioneering spirit.” He added that he selected to again crypto “at an early stage” as a result of it is going to make the US greenback stronger. “And I additionally did it for the votes,” he stated to a spherical of laughter from the viewers, “since you did come out and vote.”
”This signing is an enormous validation of your arduous work and your pioneering spirit”
The invoice handed by each chambers of Congress with bipartisan assist, with backers saying it creates crucial safeguards for the business and retains the US aggressive within the house. Nevertheless it additionally noticed opposition from different members on each side. Sen. Josh Hawley (R-MO) criticized the bill as “an enormous giveaway to Huge Tech,” citing considerations it will incentivize corporations that concern stablecoins to gather extra monetary information on customers. In a speech on the Senate floor, Senate Banking Committee Rating Member Elizabeth Warren (D-MA), stated that the invoice “is riddled with loopholes and accommodates weak safeguards for customers, nationwide safety, and monetary stability.”
Warren and other Democrats have additionally warned that legitimizing the stablecoin business by the laws may bolster a possible avenue of corruption for Trump. Trump’s household is concerned in crypto agency World Liberty Monetary that launched its personal stablecoin, USD1. The White House has said the enterprise creates no conflicts for the president as his belongings are in a belief managed by his children.
“By means of his crypto companies, President Trump has created an environment friendly means to commerce presidential favors like tariff exemptions, pardons, and authorities appointments for a whole bunch of tens of millions—maybe billions—of {dollars} from international governments, from billionaires, and from massive firms,” Warren stated. “That is the only best corruption scandal in American historical past and, by passing the GENIUS Act, the Senate is about to not solely bless this corruption, however to actively facilitate its growth.”
As Trump signed the GENIUS Act, he tried to steer consideration to what he’s billed as “a giant scandal” for his predecessor. “This isn’t an autopen, by the way in which.” Trump quipped.