During his campaign, President Donald Trump promised to make the United States the leader in digital assets. He took an enormous step towards achieving that goal by his recent signing of the Genius Act. This legislation paves the way for the United States to lead the global digital currency revolution.
The GENIUS Act prioritizes consumer protection, strengthens the U.S. dollar’s reserve currency status, and bolsters U.S. national security, according to the White House. It will also bring massive investment and innovation into the country.
President Trump supports the GENIUS Act because it protects consumers from nefarious actors in financial markets. Indeed, this legislation creates the first-ever federal regulatory system for stablecoins, which are a type of cryptocurrency designed to maintain a stable value by pegging it to a reference asset, such as a fiat currency like the U.S. dollar. The GENIUS Act requires 100 percent reserve backing with liquid assets like U.S. dollars or short-term Treasuries and requires issuers to make monthly, public disclosures of the composition of reserves.
The GENIUS Act will generate increased demand for U.S. debt and cement the dollar’s status as the global reserve currency by requiring stablecoin issuers to back their assets with Treasuries and U.S. dollars.
The GENIUS Act also reinforces U.S. national security by subjecting stablecoin issuers to the Bank Secrecy Act, obligating them to establish effective anti-money laundering and sanctions compliance programs with risk assessments, sanctions list verification, and customer identification.
President Trump is delivering on his promise to make the United States the “crypto capital of the world.” The GENIUS Act, said President Trump, “is going to make America the UNDISPUSTED leader in Digital Assets — Nobody will do it better, it is pure GENIUS! Digital Assets are the future, and our Nation is going to own it. We are talking about MASSIVE Investment, and Big Innovation. . . .This is American Brilliance at its best, and we are going to show the World how to WIN with Digital Assets like never before!” [VOA/VP]
