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News Topical, Digital Desk : US President Donald Trump said on Friday that his administration is going to announce some big trade agreements soon. While signing a bill to create a regulatory framework for dollar-linked cryptocurrency tokens or stablecoins, he said, "When I send this paper that you are giving 35 percent or 40 percent tariff, it will be a deal."
Regulatory regime is such a milestone for stablecoins
He further said that then they will call and see if they can come up with some different kind of agreement, like opening up their country for trade? The regulatory regime for stablecoins is a milestone that can pave the way for making digital assets an everyday means of payment and money transfer.
Genius Act Bill passed
The bill, called the Genius Act, passed by a vote of 308 to 122. The bill was supported by about half of the Democratic members and most of the Republicans.
This law is a big victory for crypto supporters, who have long lobbied for such a regulatory framework to give it legitimacy. On this occasion, Trump said that this signing is the result of your hard work.
Crypto usage is growing rapidly
Stablecoins are designed to maintain a stable value, typically at a 1:1 ratio to the US dollar, and their use is growing rapidly, particularly by crypto traders to transfer funds between tokens. The industry hopes these will go mainstream for sending and receiving payments instantly.
In a separate effort to protect consumers, the measure would require issuers to prioritize repayments to coin holders in the event of bankruptcy. The measure also requires issuers to comply with certain anti-money laundering rules and anti-terrorism restrictions.
What do supporters and critics say about the Genius Act?
Supporters of the Genius Act laud the measure as a first-of-its-kind effort to formalize a major segment of the cryptocurrency industry, provide protections for consumers, allow entry for traditional financial firms, and grow the digital currency market.
Christian Catalini, founder of the MIT Cryptoeconomics Lab, said that this will open new doors. You will see many issuers getting involved. Consumers will have more choices. This will increase competition and innovation in payments.
May fail to control trade- Critics
However, critics of the measure say it is a set of weak industry-friendly regulations that fail to adequately protect consumers and control the illicit trading of stablecoins.
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