US President Donald Trump has signed into law a new measure regulating stablecoins—digital currencies pegged to the US dollar—in what is being seen as a potential shift towards broader use of cryptocurrencies in everyday American financial transactions.

The Genuine Stablecoin Act (GENIUS Act) passed with strong bipartisan backing in the House of Representatives. It establishes clear operational standards for stablecoin issuers, requiring full backing of tokens with either cash or short-term U.S. Treasury bills. Issuers must also publish monthly reports disclosing their reserves.

The move aims to enhance public trust in stablecoins, which have gained popularity in crypto markets but remain under regulatory scrutiny due to concerns over financial stability and potential misuse.

“This is good for the dollar and good for the country,” President Trump said at the signing ceremony, framing the law as both an economic and technological milestone. Treasury Secretary Scott Bessent echoed this view, stating that the regulation would help solidify the dollar’s global dominance by increasing access to digital dollar-based transactions.

According to Reuters, market analysts project that the current $260 billion stablecoin market could grow to $2 trillion by 2028 under the new regulatory regime. The legislation enjoyed strong backing from the cryptocurrency industry, which reportedly spent more than $245 million supporting pro-crypto candidates in the 2024 election cycle.

However, the law has raised concerns among financial transparency groups. A Transparency International US spokesperson warned that the legislation lacks robust anti-money laundering safeguards and permits unrestricted corporate participation, posing potential systemic risks.