Trump signs the 1st large federal law on cryptocurrency in law

President Donald Trump signed the first major federal law for cryptocurrency on Friday, a company with which Trump's family has established strong relationships and has promoted in recent years.

The House of Representatives passed the Genius Act on Thursday with cross -party support, a month after it had clarified the Senate. The draft law, a central priority for the president, describes specific regulations that aim to design a certain type of digital currency called stablecoins and mainstream.

In recent years, Trump, once crypto skeptic, has advertised the most crypto-friendly commander-in-chief in US history and pushed to take over the congress on the campaign path. The president, who launched his own crypto -meme coin at the beginning of this year, recently said that he was a “fan of crypto” and called it a “very powerful industry” that “dominated” the USA.

“I have obliged to bring American freedom and leadership back and to make the United States a crypto capital of the world. And we did that under the Trump government,” he said during the signing.

Stable coins are cryptocurrency that have bound their value with a stable asset such as the US dollar. The Genius Act facilitates banks and other companies to spend these coins, and it is expected that confidence in public assets is growing into the wealth and industry as a whole.

Traditionally, buyers use their personal bank accounts to buy a stable coin, and then the stable coin to exchange another kind of volatile crypto such as Bitcoin or something else.

“Our years of careful work in the congress to clarify the payment of stablecoins have achieved a historical turning point. President Trump asked the congress to send him pioneering laws to his desk by August,” said the Republican Rep. French Hill, the chairwoman of the financial services committee of the house.

After a patient situation, the legislation among the Republicans followed the house after it was for nine hours before it was made to a debate.

Although many Democrats, including owners, supported the legislation, said some concerns that the draft law did not prevent any civil servants from promoting their personal coins and benefiting from anonymous transactions.

The democratic Maxine Waters, the ranking member of the House Financial Services Committee, opened the draft law, which referred to a company with connections to the Trump family, which recently launched its own stablecoin and was able to benefit from the currency that is further used up.

A company associated with the von Trump family has a 60% participation in World Liberty Financial, a crypto company that launched a stable coin of USD1 this spring.

Trump's image is on the company's website, which once called him “Chief Crypto Advocate” and has changed his title in “Emeritus with co -founder” since then.

“The unstable act creates the appearance of a federal framework for stable coins, but does not offer the Federal Government the full authority that it needs,” said Waters on Thursday before the vote.

In an earlier statement to ABC News, World Liberty Financial told ABC News that it was “a private company without connections to the US government”.

Trump and his family have immersed themselves in the cryptocurrency market and not only developed the meme of $ Trump, but also a Bitcoin mining company and a crypto reserve.

The White House insisted on the fact that there are no conflicts of interest in the crypto companies that indicate that Trump's assets are in a trust that is managed by his children.

It will take some time for the public to see changes outlined in the legislative template. According to Trump's law, the federal supervisory authorities will have six months to find specific regulations.

The house has also adopted the Clarity Act, a market structure package that determines the rules for assets that are monitored by the Securities and Exchange Commission or Exchange Commodities, which are regulated by Commodities Futures Trading Commission. This measure now goes to the Senate.