World News: U.S. President Donald Trump on Friday indicated that his administration is preparing to announce significant new trade agreements. While signing a bill to create a regulatory system for stablecoins—digital currencies tied to the U.S. dollar—Trump remarked, “When I send over a document stating that you’re applying a 35% or 40% tariff, that’s when an agreement happens.”
He added that such pressure could prompt other nations to negotiate and potentially open their markets to U.S. trade. He described the new stablecoin law as a “milestone” that could help digital assets become part of everyday financial transactions.
Genius Act: A Breakthrough for Crypto Regulation
The Genius Act was approved by a vote of 308 to 122, gaining support from most Republicans and nearly half of the Democrats.
The bill is being hailed as a major achievement by supporters of cryptocurrency, who have long pushed for a formal legal framework to legitimize and regulate the use of stablecoins. Trump praised the efforts behind the bill, calling the signing a “result of your hard work.” Trump applauded the work behind the bill, calling its signing “the result of your dedication.”
Why Stablecoins Are Gaining Momentum
Stablecoins are a type of cryptocurrency that aims to keep a constant value, usually matched 1:1 with the U.S. dollar. Their use is rapidly increasing, particularly among crypto traders for transferring funds between different tokens. The industry hopes these coins will eventually be used for everyday payments and instant money transfers.
What Protections Does the Law Provide?
The law introduces important consumer safeguards, including
In the event of bankruptcy, stablecoin issuers must prioritize repayments to coin holders. Issuers must comply with anti-money laundering (AML) rules and anti-terrorism financing regulations.
Mixed Reactions: Supporters Applaud, Critics Worry
Supporters say the Genius Act is a groundbreaking step in recognizing and regulating a major segment of the digital finance sector. It is expected to protect consumers, encourage innovation, and allow traditional financial institutions to enter the crypto space.
“It’s a door opener. More companies will join, consumers will get more choices, and innovation in payments will thrive,” said Christian Catalini, founder of the MIT Cryptoeconomics Lab.
However, critics argue that the law favors the industry too much and lacks strict enforcement, potentially failing to curb illegal activities or ensure strong consumer protections.
