U.S. Enacts GENIUS Act Integrating Dollar with Blockchain
2min read
Aime SummaryThe U.S. Treasury has announced a significant regulation to integrate the dollar with blockchain technology. The “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) Act, signed by President Donald Trump and passed by Congress, establishes a comprehensive regulatory framework for blockchain-based, dollar-backed digital assets.
The new law introduces strict supervision and procedures for banks and authorized issuers launching payment-based stable cryptocurrencies. It aims to ensure the secure and transparent management of these assets, granting authority to issue dollar-backed digital assets exclusively to licensed entities meeting specified criteria.
Treasury Secretary Scott Bessent, in a statement on social media platform X, emphasized that the U.S. dollar will now exist on the blockchain. Bessent credited this legal regulation to President Trump’s leadership, asserting it will reinforce the global reserve currency status of the U.S. dollar. “Blockchain technologies will guide next-generation payments, moving the U.S. dollar onto the blockchain. Thanks to President Trump’s visionary leadership and Senator Hagerty’s efforts, the GENIUS Act will strengthen the U.S. dollar’s status as a global reserve currency,” said Bessent.
In a press release, President Donald Trump remarked that the passage of the law marks a significant step forward in U.S. financial technology. Trump highlighted that the new legislation provides a clear regulatory environment for dollar-backed stable digital assets, potentially representing the biggest revolution in financial technology since the advent of the Internet. “The GENIUS Act provides an open, straightforward regulatory framework to unleash the tremendous potential of dollar-backed stable digital assets. This could be the biggest revolution in financial technology since the Internet’s arrival,” said Trump.
The law’s scope suggests the possibility of widespread use of blockchain-based digital dollars, marking a new era of digitization for the U.S. financial system. It also holds potential for innovative applications in payment services, international transfers, and banking transactions.
Experts assess that the new legislation will establish important safety and transparency standards in the digital asset market. This might enable controlled utilization of digital assets by investors and institutions. Furthermore, U.S. leadership in legal regulations for advanced technologies may set an example for other countries.
With the law’s enactment, it is anticipated that
and technology companies in the U.S. will quickly adapt to digital dollar applications. However, the precise pathway for implementation and the effectiveness of set standards will be a closely observed process by all stakeholders.Considered to shape the future of the digital asset world, this legal regulation could strengthen the U.S.’s position in international financial competition. The regulation’s implementation dimensions and its impacts on the financial system continue to pique interest in the upcoming period.
The U.S.’s new regulatory initiative introduces blockchain-integrated dollars, emphasizing security, transparency, and regulatory standards. The proliferation of dollar-backed digital assets prompts significant questions about the future of financial technology. The U.S.’s step forward in pioneering financial innovation may also spark discussions on similar regulations globally. The outcomes and opportunities of the regulation for investors, entrepreneurs, and the finance sector could become clearer in the coming months.
Comments
No comments yet