U.S. President Donald Trump has recently expressed his support for the exclusive GENIUS Act. As per Donald Trump, the GENIUS Act is a notable development to affirm the dominance of the United States in the world when it comes to digital assets. In the meantime, all eyes are on the GENIUS Act’s potential market impact.
Cementing the U.S. Leadership in Crypto Market
In his statement, Donald Trump classified the GENIUS Act as a “brilliant” breakthrough in the legislative sphere. Additionally, he is of the view that the newly approved Senate bill marks the earliest regulatory agenda to deal with stablecoins in the U.S. Trump considers this bill to be a noteworthy development to make the country the “undisputed leader” within the digital asset landscape.
Trump shared a post on its social media platform Truth Social, emphasizing the strategic significance of the GENIUS Act. He asserted that the bill would attract a notable amount of investment while also driving innovation across the financial technology world. The bill orders a 1:1 reserve collateral for stablecoins, resilient anti-money laundering rules, and stringent licensing requirements.
Despite Notable Support, Stablecoin Bill Still Faces Friction
In addition to this, the GENIUS Act also restricts the way the issuers can utilize reserves, guaranteeing user protection and financial stability. The U.S. Senate passed the GENIUS Act with a 68-30 vote. Nonetheless, irrespective of the wide support, political friction is still there. Specifically, Senator Elizabeth Warren has articulated apprehensions, saying that the bill could provide financial support just to the Trump family.
Meanwhile, the speculation is rising about the U.S. Fed Chairman Jerome Powell who has formerly shown reluctant interest in the regulation of stablecoins. After approval, GENIUS Act will grant the Fed more authority over the supervision of stablecoin issuers. Moreover, Trump’s support for the bill is a crucial sign for the further progress of the bill.
