US Passes First Major National Cryptocurrency Law in Milestone for Digital Finance

 

The United States has passed its first major national cryptocurrency legislation, marking a turning point for the digital finance sector. The bill, called the Genius Act, focuses on regulating stablecoins cryptocurrencies backed by assets like the US dollar and is expected to be signed into law by President Donald Trump on Friday. This legislation comes after years of lobbying by the crypto industry, which has invested heavily in politics, including backing Trump during the last election. Although once a crypto critic, Trump has embraced the sector in recent years, developing business ties with companies such as World Liberty Financial. The Genius Act establishes a clear regulatory framework for stablecoins, requiring them to be backed one-to-one with dollars or other low-risk assets. These coins are commonly used to facilitate crypto trading due to their relative stability compared to more volatile cryptocurrencies like Bitcoin. Supporters argue the bill offers much-needed clarity and positions the US to keep pace with modern financial innovations. However, critics warn it could introduce new risks by legitimizing stablecoins without adequate consumer safeguards. They also express concern that tech companies could gain more influence over financial services without facing the same oversight as traditional banks. Despite objections, the bill drew bipartisan support, passing the House after earlier approval in the Senate. Consumer groups had urged lawmakers to oppose it, warning it would give a false sense of security around digital assets. Two other crypto-related bills one to block a central bank digital currency and another to regulate broader crypto markets have passed the House and await Senate consideration. Meanwhile, Trump is reportedly drafting a presidential order to allow retirement savings to be invested in crypto, gold and private equity. Bitcoin surged past $120,000 this week, amid the legislative momentum.

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