U.S. Signs Stablecoin Law to Boost Crypto Regulation and Innovation

President Trump has signed the GENIUS Act, marking the first official U.S. regulatory framework for stablecoins. The law mandates that stablecoins be fully asset-backed and subject to regular audits, while also promoting innovation in the digital asset space [1]. This move is seen as a major step toward legitimizing the crypto industry on a global scale. The legislation underscores the administration’s broader digital asset strategy, referred to internally as “Project Crypto,” which is now gaining momentum as the U.S. seeks to strengthen its blockchain infrastructure and regulatory leadership [2]. Analysts suggest this could pave the way for further pro-crypto policy developments in the near future [3].

Meanwhile, Bitcoin remains resilient, maintaining a position above $114,500 amid a broader market rally. Technical indicators show that the asset is holding key support levels, with market participants closely watching for a potential breakout if resistance is overcome [1]. Institutional interest is reportedly increasing, with investors signaling confidence in the asset’s long-term trajectory [2].

Separately, in China Hong Kong, the implementation of a new stablecoin regulation has raised concerns within the crypto community. Effective August 1, the rules require all stablecoin users to undergo stringent know-your-customer (KYC) checks, a measure aimed at preventing money laundering [3]. Critics argue, however, that such requirements could undermine user privacy and erode trust in the technology [4].

The U.S. move under the GENIUS Act is likely to have ripple effects beyond domestic markets. By establishing a clear regulatory environment, the U.S. is setting a benchmark that could influence similar policy developments in other jurisdictions. This is particularly relevant as global regulators seek to balance innovation with risk mitigation in the rapidly evolving digital asset landscape [5].

The broader implications of these developments suggest a maturing crypto ecosystem, with governments increasingly recognizing the need for structured oversight. For investors, the combination of regulatory clarity and sustained price strength in major assets like Bitcoin could signal a more stable and predictable market ahead.

Source: [1] NEWS DIGEST – 07.08.2025 (https://coinmarketcap.com/community/articles/689468b0507aff34f6dedf91/)