President Trump has enacted the National Innovation Stablecoin Act into law, establishing a definitive regulatory framework for stablecoins within the United States. This legislation formally classifies stablecoins as legitimate monetary instruments, ending a prolonged period of regulatory uncertainty.
The core provision requires all stablecoin issuers to maintain 1:1 reserve backing exclusively with highly liquid assets. U.S. dollars are specified as the primary reserve asset, ensuring sufficient funds exist to redeem holders on demand. This requirement aims to enhance stability and consumer protection significantly compared to the previous regulatory environment.
Previously operating in a gray area, stablecoins now possess official legal recognition as a form of money governed by clear federal rules. The enactment signals a major shift towards integrating digital dollar-pegged assets into the national financial system under defined oversight.