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Trump signs stablecoin bill into law, capping string of 'Crypto Week' victories
Trump signs stablecoin bill into law, capping string of 'Crypto Week' victories

Yahoo

time3 days ago

  • Business
  • Yahoo

Trump signs stablecoin bill into law, capping string of 'Crypto Week' victories

President Trump on Friday signed into law a bill that establishes the first federal framework for dollar-backed stablecoins, one of the biggest victories yet for a crypto industry that has pushed for more favorable oversight in Washington, D.C. "I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that's what we've done," Trump said during a signing ceremony for the GENIUS Act at the White House. Two other crypto bills also passed through the House this week, the CBDC Anti-Surveillance State Act and the CLARITY Act, that served as additional wins for the crypto industry. They prohibit the creation of central bank digital currencies and assign oversight over all digital assets except stablecoins to either the Securities and Exchange Commission (SEC) or the Commodities Futures Trading Commission (CFTC). Both will now go to the Senate, where their ultimate fates are still unknown. The passage of all three bills came after a series of roadblocks and delays as GOP leaders struggled to bring some Republican holdouts in line during a week dubbed "Crypto Week' by backers of the legislation. Trump is also deepening his own financial involvement in cryptocurrencies with several separate ventures. They include World Liberty Financial, a new crypto startup backed by Trump and his sons that has already launched its own US-dollar-pegged stablecoin (USD1) in partnership with BitGo. Stocks with crypto ties have been surging recently as investors anticipated the moves in the nation's capital, notably Coinbase (COIN), Robinhood (HOOD), and newly public stablecoin issuer Circle (CRCL). Read more: Can you buy crypto with a credit card? See the pros and cons. The GENIUS Act signed into law by Trump Friday outlines how US companies can issue and manage dollar-backed stablecoins for payments, giving those digital assets a massive stamp of approval that is expected to encourage wider adoption. It bans members of Congress and their families from earning profits from stablecoins, but not Trump and his family, an omission that irked some Democrats and slowed progress on the legislation earlier this spring. Between Washington and Wall Street, the expectations are riding high for what this legislation ultimately brings. A senior Treasury official said growth in the $260 billion stablecoin market over the months and years ahead will have a significant impact on the dominance of the US dollar and demand for US debt. The legislation is also expected to unleash a wave of new stablecoin entrants as traditional companies ranging from banks to megaretailers consider whether to issue their own coins. "Banks and nonbanks have parity here, so I think the banks will be able to compete in this new payments regime," said Patrick McHenry, the former Republican congressman and House Financial Services chair who helped move forward an earlier iteration of the stablecoin bill in the last Congress. JPMorgan Chase (JPM) CEO Jamie Dimon and Citigroup (C) CEO Jane Fraser both said Tuesday they are planning to get involved in stablecoins, the latest evidence of how Wall Street is pivoting to embrace digital assets. Big banks have convened to explore prospects for launching a collaborative stablecoin network. Dimon, a longtime skeptic of cryptocurrencies, said the bank needs to embrace stablecoins as a way to keep pace with payment rivals. Last month, JPMorgan announced plans to launch a so-called deposit token called JPMD that is somewhat like a stablecoin but available only to JPMorgan's institutional clients. "We're going to be involved in both JPMorgan deposit coin and stablecoins to understand it, to be good at it," Dimon said. Other banks are also paying attention. "I think it's real. I think it's here to stay. I think it's a little overhyped at this point, but we'll figure out the best way that we can get involved," Bruce Van Saun, CEO of Citizens Financial Group (CFG), told Yahoo Finance. The Wall Street Journal has separately reported that Amazon (AMZN) and Walmart (WMT) are exploring stablecoin opportunities. The new wave of competition could upend the traditional payment system, especially if merchants seek to use stablecoins as a way to get around conventional card-based networks such as Visa (V) and Mastercard (MA). The legislation also would empower the Federal Reserve and the Office of the Comptroller of the Currency (OCC) to oversee stablecoin issuers that hold $10 billion or more in assets. Smaller issuers would be under the purview of state regulators. All issuers would be required to hold reserves in cash or US Treasurys, undergo regular audits, and publicly disclose their holdings and redemption processes. Like money market funds, the tokens must aim to be redeemable at face value. But unlike money market funds, stablecoins under this bill cannot pay interest. There's an ongoing debate about how widespread the usage of these digital assets will ultimately be. Stablecoin proponents tout these assets as a haven from crypto's wild volatility and a safer place for traders to store their gains because they can be pegged to non-crypto assets like the dollar. Their near-instant settlement and programmability also carry advantages proponents believe could enhance cross-border transactions and wider access to the US dollar. But there are still concerns among detractors that there could be risks with stablecoins, including the possibility of panic runs among investors. 登入存取你的投資組合

Author of Crypto Bills Now Being Rehashed Predicts 'Wicked Hot Summer' in Congress
Author of Crypto Bills Now Being Rehashed Predicts 'Wicked Hot Summer' in Congress

Yahoo

time30-04-2025

  • Business
  • Yahoo

Author of Crypto Bills Now Being Rehashed Predicts 'Wicked Hot Summer' in Congress

Two recent shepherds of U.S. crypto oversight — Republican former lawmaker Patrick McHenry and Democrat former Commodity Futures Trading Commission chief Rostin Behnam — shared a view that there's a tremendous amount of work still to do on U.S. crypto legislation but that now is the moment to do it. McHenry, in a discussion hosted by Georgetown University's Psaros Center for Financial Markets and Policy, said that Senator Tim Scott, the South Carolina chairman of the Senate Banking Committee, and Representative French Hill, the Arkansas Republican who leads the House Financial Services Committee, present the industry an ideal opportunity to establish sound law. "And I think you should take it," he said, arguing that solid law will act as a better future defense than regulatory stopgaps that aren't associated with congressional action. "Let's ward against bad regulators taking these seats that could try to kill digital innovation." Last year, McHenry backed the Financial Innovation and Technology for the 21st Century Act (FIT21), which has become the foundation for this year's congressional effort on crypto's market structure. The former lawmaker, who now advises industry investor a16z, predicted a "wicked hot summer for legislating." McHenry also had a direct hand in last year's stablecoin legislation that's returned with new versions in the House and Senate. Though they're mostly aligned with each other, he said a "major brewing battle" is shaping up between U.S. stablecoin issuer Circle (USDC) and the global leader, Tether (USDT), over how non-U.S. issuers would be handled. Both want to be in business after Congress passes a law, McHenry said, "and they're both working actively on Capitol Hill to make their point of view heard." He said he expects a "reasonable landing spot" will be found in a U.S. regime for Tether that allows it to deal with U.S. investors. "You shouldn't blow up an international product that desires to be dollar-denominated; I don't think that's a rational outcome," he argued, though the matter may take more months of negotiating among lawmakers. The debates over the meat of highly technical policies will eventually transition from "science to art" as lawmakers do what they can to convert ideas into law, McHenry said. Meanwhile, the industry keeps going, largely unregulated at the federal level. As Behnam noted: "You can't stop the industry from doing what it's doing, whether it's trading the tokens or developing protocols and whatnot, and that's been going on for years." He was never able to get on the same page with former Securities and Exchange Commission Chair Gary Gensler to initiate crypto policies, and he offered a reality check for those now waiting for laws from a cooperative Congress: They'll also have to be implemented by the regulators. "It's going to take a while," he said, starting with the market structure legislation that may still be several months away. "But then it kicks over to the harder part, where you're going to have the market regulators and the bank regulators writing rules, which often can take over a year, even at the quickest clip."Sign in to access your portfolio

McHenry: May is Key Month on Taxes
McHenry: May is Key Month on Taxes

Bloomberg

time28-04-2025

  • Business
  • Bloomberg

McHenry: May is Key Month on Taxes

Patrick McHenry, Former US Representative (R) North Carolina, shares his thoughts on if House Republican's goal of getting a tax bill done by Memorial Day is possible and states "the month of May will dictate the health of the whole summer," detailing plans of how House congressional members can try to make this goal possible. He also talks about the debt limit, tax cuts, and if President Trump's tariff policies will help the American people. Patrick McHenry speaks with Kailey Leinz and Joe Mathieu on the late edition of Bloomberg's "Balance of Power." (Source: Bloomberg)

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