Trump Signs Law Promoting Stablecoins
President Donald Trump on Thursday signed new legislation meant to expand the usage of cryptocurrencies.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS) is intended to offer consumer protections on stablecoins, a cryptocurrency that is tied to the value of other forms of currencies, like the U.S. dollar. The House of Representatives last week approved the bill in a 308-122 vote. It had also passed the Senate in June in a 68-30 vote.
The new law is intended to gain confidence among consumers, many whom continue to be skeptical of cryptocurrencies due to its volatile and controversial past. It also comes as Trump intends to sign an executive order that would permit federal agencies to explore the usage of private equity and private capital investments in 401(k) plans.
It would be the latest nod in support of the crypto industry by Trump, who has been vocally encouraging of the digital assets and has signed executive orders promoting its usage, while also uplifting a former crypto industry collaborator as the current Securities and Exchange (SEC) director. It’s all in hopes of making the U.S., “the crypto capital of the world,” Trump said.
His outlook is starkly different from the former Biden Administration, who under prior SEC Director Gary Gensler, imposed a strict attitude on digital currencies.
“For years you were mocked and dismissed and counted out,” Trump said to a crowd of nearly 200 people, including crypto industry executives, during his signing at the White House. “This signing is a massive validation of your hard work and your pioneering spirit.”
SEC Director Paul Atkins, whose close ties to the crypto industry as founder and CEO of Patomak Global Partners is anticipated to further ease regulation on digital assets, said the new law signals a step forward in crypto transparency and innovation.
“Ensuring that the U.S. is the best and most secure place in the world to invest and do business requires clear rules of the road that allow market participants to adopt emerging technologies with confidence. President Trump and the entire Administration are sending a powerful message that America is ready to embrace crypto asset innovation,” Atkins said in a statement.
He noted that allowing payment stablecoin regulation would offer transactions that “boost efficiency and lower costs.” “Payment stablecoins will play a significant role in the securities industry moving forward, which is why I have asked SEC staff to consider whether guidance, rulemaking, or other steps may be helpful to accommodate SEC registrants utilizing payment stablecoins, including for settlement and margining. I invite market participants to engage with the SEC staff on what is needed for our securities markets to take advantage of the GENIUS Act’s full potential,” he further added.
SEE ALSO:
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Private Equity’s Fast Lane to 401(k)s
Trump Mulls Executive Order to Allow Private Equity in 401(k)s
Amanda Umpierrez is the Managing Editor of 401(k) Specialist magazine. She is a financial services reporter with nearly a decade of experience and a passion for telling stories and reporting news. She is originally from Queens, New York, but now resides in Denver, Colorado.
