The GENIUS Act creates guidelines for entities that difficulty stablecoins, whose worth is tied to an asset just like the US greenback. These guidelines govern who’s allowed to difficulty stablecoins, how they should keep reserves, what occurs within the case of chapter, and an obligation to stop cash laundering.
Trump congratulated members of the crypto trade 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 have been “making an attempt to crush your trade,” and himself. “I acquired you guys out of a lot hassle,” Trump mentioned.
“Your entire crypto neighborhood, for years, you have been mocked and dismissed and counted out,” Trump mentioned. “However this signing is an enormous validation of your onerous work and your pioneering spirit.” He added that he selected to again crypto “at an early stage” as a result of it’s going to make the US greenback stronger. “And I additionally did it for the votes,” he mentioned to a spherical of laughter from the viewers, “since you did come out and vote.”
”This signing is an enormous validation of your onerous work and your pioneering spirit”
The invoice handed by means of each chambers of Congress with bipartisan help, with backers saying it creates crucial safeguards for the trade and retains the US aggressive within the area. But it surely additionally noticed opposition from different members on either side. Sen. Josh Hawley (R-MO) criticized the invoice as “an enormous giveaway to Huge Tech,” citing considerations it could incentivize corporations that difficulty stablecoins to gather extra monetary knowledge on customers. In a speech on the Senate flooring, Senate Banking Committee Rating Member Elizabeth Warren (D-MA), mentioned that the invoice “is riddled with loopholes and comprises weak safeguards for customers, nationwide safety, and monetary stability.”
Warren and different Democrats have additionally warned that legitimizing the stablecoin trade by means of the laws might 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 Home has mentioned the enterprise creates no conflicts for the president as his property 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 tons of of hundreds of thousands—maybe billions—of {dollars} from overseas governments, from billionaires, and from massive firms,” Warren mentioned. “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.
