On Friday, Donald Trump signed into law the first major national legislation on cryptocurrencies in the United States, which he believes could be the biggest revolution in financial technology “since the birth of the internet.”
The new regulations establish a “clear and simple” regulatory regime for so-called stable cryptocurrencies, which are backed by assets considered reliable, such as the dollar, and will activate the “immense potential” of these currencies, he said at the signing ceremony at the White House.
“Consumers, sellers, and people around the world will be able to use these stablecoins for low-cost transactions that settle in seconds, rather than weeks and months. And that’s really amazing,” said the Republican leader.
“This revolution has the potential to boost US economic growth and empower billions of people to save and transfer money in US dollars.”
Treasury bonds
Trump believed that this would “increase demand for US Treasury bonds, lower interest rates, and secure the dollar’s status as the world’s reserve currency for future generations.”
The House of Representatives approved the so-called Genius Act on Thursday, with support from Democrats, a month after the Senate, also with bipartisan backing, did the same in that chamber.
This week, the president stated on his social media platform Truth Social that, with its approval, the United States would become the “undisputed number one leader in digital assets.”
The new regulations are expected to make it easier for banks and other entities to issue these cryptocurrencies, while also increasing public confidence in these assets by requiring issuers to comply with existing anti-money laundering laws and international sanctions.
According to ABC News, people typically use their personal bank accounts to buy stable cryptocurrencies and then use those coins to exchange them for a more volatile cryptocurrency, such as Bitcoin.
In March, Trump signed an executive order to create two reserves—one for Bitcoin and another for other cryptocurrencies—containing all the electronic currencies that various federal government agencies have confiscated in different operations, which will be controlled by the Department of the Treasury.
“I will make sure that the United States is the cryptocurrency capital of the world. We are making America great again!” he declared at the time.
Since the start of his second term on January 20, his approach to the world of cryptocurrencies has been evident and not without criticism.
His presidential campaign was financially supported by the digital currency industry, and in May he hosted a controversial gala dinner with investors in his memecoin, which, according to the White House, did not constitute a conflict of interest.
The Democratic Party and activist groups had accused the New Yorker of setting up a scheme in which, in exchange for investments, foreign figures with interests unknown to the public are granted direct access to the president.
