Advocates in the US have passed the country’s major legislation in the cryptocurrency industry. according to Reuters, the law was signed by US president, Donald Trump, allowing for digital asset to become an everyday mode of payment and to move money. The bill had a significant bipartisan support as it passed by a vote of 308 to 122, and it was previously approved by the Senate.
This bill dubbed; Genius Act is one of the three pieces of cryptocurrency legislation. Lawmakers remark that the passage of this bill signifies a key moment in cryptocurrency’s convolution toward mainstream adoption. The stable coin bill sets inceptive safety measures and consumer protection for cryptocurrency with reserve requirements, audits and compliance. The new law legislates the need for stable coins to be backed by liquid assets such as the US dollar.
The bill also outlines requirements for stable coin users; a compliance with anti money laundering and also mandates that issuers hold reserves backing the cryptocurrency. Additionally the legislation aims to provide clarity for the methodology of regulating digital assets by defining what forms of cryptocurrency should be treated as commodity. This measure makes a step for the industry towards adding legitimacy and consumer trust.
US Treasury Scott Bessent said that the legislation could help the currency grow into a $3.7trillion market by the end of a decade and this would potentially set US to be cryptocurrency capital of the world.
Also Read: United Nations Urge Kenya Implement Cryptocurrencies Tax Regulations.
