New crypto act is a win for traders
- Alexangel Ventura
- Jun 19
- 1 min read
The GENIUS Act, the biggest crypto legislation of our lifetime passed by the U.S. Senate, has been a boom for investors as it attempts to shed light on the previously unregulated crypto market.
The act was supported by a bipartisan group of legislators on Wednesday after having been approved by President Trump. Trump previously called for a piece of legislation like this to be implemented to take the next steps in the wide adoption of crypto, after creating a crypto reserve earlier this year.
Over the past decade, the United States took a very passive approach to managing the rise of crypto, not partaking in significant efforts to regulate it. Other countries, like Canada and Japan, signed bills to do just that as early as 2014. El Salvador became the first country ever to adopt a cryptocurrency, Bitcoin, as an officially used currency.
Trump was then advised by El Salvadorian President Nayib Bukele to bring crypto one step closer to official recognition.
The new act, the GENIUS Act, will regulate stablecoins, which are forms of crypto designed to follow a stable value pegged by the U.S. dollar. The act provides a framework for stablecoin companies for issuing crypto, mainly by holding assets in reserve equal to the amount of crypto they issue to avoid dangerous volatility.
With the implementation of these clear rules for crypto, private firms could take action to further regulation and ultimately adoption.
In reaction to this news, Bitcoin and Ethereum pushed downward.
