Trump Signs GENIUS Act, Establishing First U.S. Crypto Law, Strengthening Dollar

Key Points

1. The GENIUS Act requires stablecoin issuers to maintain full reserve backing in U.S. dollars and undergo annual audits if circulation exceeds $50 billion.

2. Stablecoin issuers are banned from offering interest or yield products, distinguishing them from banks or investment entities.

3. The law aims to reinforce the U.S. dollar's role as the global reserve currency by tying stablecoin reserves to U.S. Treasuries.

4. The GENIUS Act includes provisions for transparency, oversight, and consumer protection to prevent market failures and reduce systemic risk.

5. The legislation is part of President Trump's broader pro-crypto policy, which includes opposition to central bank digital currencies (CBDCs) and the creation of a Strategic Bitcoin Reserve.