U.S. President Donald Trump signed the GENIUS Act on July 18, which regulates the issuance and security of stablecoins - tokens tied to the dollar exchange rate. It is the first federal cryptocurrency law in U.S. history, noted Bloomberg.

"GENIUS is creating a clear and simple regulatory framework to realize and unlock the tremendous potential of stablecoins," Trump said Friday at the White House. - This could prove to be perhaps the most sweeping technological revolution in finance since the advent of the internet." The president believes the new law will reaffirm the U.S. currency's status as the world's reserve currency by "giving billions of people the ability to save and transfer money in dollars."

The signing ceremony was attended by the heads of some cryptocurrency companies. In particular, the media noticed Brian Armstrong from Coinbase Global, Vlad Tenev from Robinhood Markets, billionaires and founders of Gemini crypto exchange Cameron and Tyler Winklevoss, as well as the CEO of Rumble, a video platform popular with the cryptocommunity, Chris Pawlowski.

The GENIUS Act establishes rules for dollar-stablecoins, including a requirement to be fully collateralized with cash or short-term Treasury bonds controlled by federal or state regulators. Supporters of the law believe it paves the way for greater use of digital assets in the financial system, Bloomberg writes.  

"Institutional funds that have been on the sidelines waiting for just this kind of [legislative] clarity are now going to flood into this market,"  commented The Benchmark Company analyst Mark Palmer in an interview with the Financial Times.

Shares of Circle Internet Group, which issues the USDC's second-largest stablecoin, fell 4.8% on Friday. When the GENIUS Act passed in the Senate in June, Circle's quotes soared 34%. Shares of cryptocurrency exchange Coinbase Global strengthened 2.2% on July 18, while trading platform Robinhood Markets gained 4.1%. Bitcoin, which has been updating record after record in anticipation of cryptocurrency legislation, fell 1.87% to $117,700 on July 18. Shares of Strategy, which is the largest corporate holder of the cryptocurrency, fell 6.2%.

This article was AI-translated and verified by a human editor

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