(Washington) US President Donald Trump promulgated on Friday a new law regulating a type of cryptocurrency, a major step for a sector that tries to strengthen its legitimacy and political influence.
The Genius law establishes the first safeguards and other consumer protections for stable cryptocurrencies, those linked to assets such as the US dollar, in order to reduce price volatility compared to other forms of cryptomonia. It was adopted by the House of Representatives and the Senate with a large bipartite majority.
This new law aims to strengthen consumer confidence in the cryptocurrency sector, which quickly took importance in Washington thanks to massive campaign donations and lobbying expenses. His adoption comes after President Trump has been on several occasions to make the United States the “world capital of cryptocurrencies”.
“For years, you have been mocked, dismissed and sidelined,” Trump told leaders of the cryptocurrency sector during a signature ceremony at the White House, which attended around 200 people, including several influential republican elected officials. “This signature is a major recognition of your hard work and your pioneer spirit. The cryptocurrency industry has long been complaining of having been unjustly targeted by the administration of former president Joe Biden and spent massively to help Donald Trump won last year’s election.
The president praised leaders in the cryptocurrency sector during his Friday speech, declaring that “no one has won so much respect in such a short time”.
PHOTO ANNABELLE GORDON, REUTERS
Donald Trump signed the Genius Act at the White House.
He also said that helping the cryptocurrency industry was “good for the dollar and for the country.”
“This is why I supported you very early,” said Trump, who was skeptical about cryptocurrencies before adopting them. Its administration has taken several early measures to stimulate the cryptocurrency industry, including the abandonment by the SEC of several coercive measures against large cryptocurrency companies.
The president then admitted the political calculation of his support for the cryptocurrency industry: “And I also did it for the votes,” he joked, provoking the laughter of the audience.
Trump also joked by saying that legislators had baptized the Genius law after his name. This acronym means “Guiding and Establishing National Innovation for US Stablecoins” (Orient and establish national innovation for American stable cryptocurrencies).
The use of stable cryptocurrencies has experienced spectacular growth in recent years. Circle, the American transmitter of one of the most popular cryptocurrencies, entered the New York Stock Exchange at the start of the year and quickly saw its value soaring, under the effect of the lively interest of enthusiasts and investors. Stable cryptocurrency issuers make profits by receiving the interests of the assets they hold in reserve to guarantee their own currencies.
A provision of the Genius law prohibits members of the congress and their families to take advantage of stable cryptocurrencies. But this ban does not apply to the president and his family, even if Mr. Trump builds an cryptocurrency empire from the White House. His family has an important participation in World Liberty Financial, which launched its own stable cryptocurrency at the start of the year and benefited from a first boost from an investment fund for the United Arab Emirates.
The House of Representatives also adopted two other bills on Thursday intended to support the cryptocurrency sector. One creates a new market structure for cryptocurrencies, and the other prohibits the federal reserve from issuing a new digital currency. These two measures are now subject to the Senate.