Trump signs stablecoin law as crypto industry aims for mainstream adoption

US President Donald Trump signs the GENIUS Act, which codifies the use of stablecoins in the East Room of the White House in Washington on July 18, 2025. (AFP)
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Updated 19 July 2025
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Trump signs stablecoin law as crypto industry aims for mainstream adoption

  • Law requires tokens to be backed by liquid assets
  • Measure is first major crypto law enacted in US
  • Critics say loopholes in law risk making US haven for criminals

WASHINGTON: US President Donald Trump on Friday signed a law to create a regulatory regime for dollar-pegged cryptocurrencies known as stablecoins, a milestone that could pave the way for the digital assets to become an everyday way to make payments and move money.

The bill, dubbed the GENIUS Act, passed in the House of Representatives by a vote of 308 to 122, with support from nearly half the Democratic members and most Republicans. It had earlier been approved by the Senate.

The law is a huge win for crypto supporters, who have long lobbied for such a regulatory framework in a bid to gain greater legitimacy for an industry that began in 2009 as a digital Wild West famed for its innovation and speculative chaos.

“This signing is a massive validation of your hard work and pioneering spirit,” said Trump at a signing event that included dozens of government officials, crypto executives and lawmakers. “It’s good for the dollar and it’s good for the country.”

Treasury Secretary Scott Bessent, in a statement, said the new technology would buttress the dollar’s status as the global reserve currency, expand access to the dollar economy and boost demand for US Treasuries, which back stablecoins.

Stablecoins are designed to maintain a constant value, usually a 1:1 US dollar peg, and their use has exploded, notably by crypto traders moving funds between tokens. The industry hopes they will enter mainstream use for sending and receiving payments instantly.

The new law requires stablecoins to be backed by liquid assets — such as US dollars and short-term Treasury bills — and for issuers to disclose publicly the composition of their reserves monthly.

Crypto companies and executives argue such legislation will enhance stablecoins’ credibility and make banks, retailers and consumers more willing to use them to transfer funds instantly.

The stablecoin market, which crypto data provider CoinGecko said is valued at more than $260 billion, could grow to $2 trillion by 2028 under the new law, Standard Chartered bank estimated earlier this year.

The law’s passage culminates a long lobbying effort by the industry, which donated more than $245 million in last year’s elections to aid pro-crypto candidates including Trump, according to Federal Election Commission data.

The Republican president, who has launched his own coin, thanked executives for their support during the 2024 presidential campaign, saying, “I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that’s what we’ve done.”

Democrats and critics have said the law should have blocked big tech companies from issuing their own stablecoins, which could increase the clout of an already powerful sector, contained stronger anti-money laundering protections and prohibited foreign stablecoin issuers.

“By failing to close known loopholes and protect America’s digital dollar infrastructure, Congress has risked making the US financial system a global haven for criminals and adversarial regimes to exploit,” said Scott Greytak, deputy executive director of Transparency International US

Could boost demand for T-bills

Big US banks are internally debating an expansion into cryptocurrencies as regulators give stronger backing to digital assets, but banks’ initial steps will focus on pilot programs, partnerships or limited crypto trading, Reuters reported in May.

Several crypto firms including Circle and Ripple are seeking banking licenses, which would cut costs by bypassing intermediary banks.

Backers of the bill have said it could potentially give rise to a new source of demand for short-term US government debt, because stablecoin issuers will have to purchase more of the debt to back their assets.

Trump has sought to broadly overhaul US cryptocurrency policies, signing an executive order in March establishing a strategic bitcoin reserve.

The president launched a meme coin called $TRUMP in January and partly owns crypto company World Liberty Financial. 


New Zealand mosque shooter seeks to discard his guilty pleas, saying prison made him irrational

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New Zealand mosque shooter seeks to discard his guilty pleas, saying prison made him irrational

WELLINGTON: The man who killed 51 Muslim worshipers at two mosques in New Zealand’s deadliest mass shooting told an appeals court Monday that he felt forced to admit to the crimes because of “irrationality” due to harsh prison conditions, as he sought to have his guilty pleas discarded.
A panel of three judges at the Court of Appeal in Wellington will hear five days of evidence about Brenton Tarrant’s claim that he was not fit to plead to the terrorism, murder and attempted murder charges he faced after the 2019 attack in the city of Christchurch. If his bid is successful, his case would return to court for a trial, which was averted in March 2020 when he admitted to the hate-fueled shooting.
He is also seeking to appeal his sentence of life without the chance of parole, which had never been imposed in New Zealand before. Tarrant’s evidence Monday about his mental state when he pleaded guilty was the first time he had spoken substantively in a public setting since he livestreamed the 2019 massacre on Facebook.
Shooter says he suffered “nervous exhaustion”
The Australian man, a self-declared white supremacist, migrated to New Zealand with a view to committing the massacre, which he planned in detail. He amassed a cache of semiautomatic weapons, took steps to avoid detection and wrote a lengthy manifesto before he drove from Dunedin to Christchurch in March 2019 and opened fire at two mosques.
Along with 51 people killed, the youngest a 3-year-old boy, dozens of others were severely wounded. The attack was considered one of New Zealand’s darkest days and institutions have sought to curb the spread of Tarrant’s message through legal orders and a ban on possession of his manifesto or video of the attack.
Monday’s hearing took place under tight security constraints that severely limited who could view Tarrant’s evidence, which included some reporters and those hurt or bereaved in the massacre. Tarrant, who wore a white button-down shirt and black-rimmed glasses and had a shaved head, spoke on video from a white-walled room at Auckland Prison.
Answering questions from a Crown lawyer and from lawyers representing him, Tarrant, 35, said his mental health had deteriorated due to conditions in prison, where he was held in solitary confinement with limited reading material or contact with other prisoners.
By the time he pleaded guilty, Tarrant said he was suffering from “nervous exhaustion” and uncertainty about his identity and beliefs. He had admitted to the crimes a few months before his trial was due to begin because there was “little else I could do,” he told the court.
Crown lawyers say no evidence of serious mental illness
Crown lawyer Barnaby Hawes suggested to Tarrant during questioning that the Australian man had other options. He could have requested a delay in his trial date on mental health grounds or could have proceeded to trial and defended himself, Hawes said.
Hawes also put to Tarrant that there was little evidence in the documentation of his behavior by mental health experts and prison staff that he was in any kind of serious mental crisis. Tarrant suggested that signs of mental illness he displayed hadn’t been recorded and that at times he had sought to mask them.
“I was definitely doing everything possible to come across as confident, assured, mentally well,” he told the court. Tarrant’s behavior “reflected the political movement I’m a part of,” he added. “So I always wanted to put on the best front possible.”
He agreed that he had had access to legal advice throughout the court process. Tarrant’s current lawyers have been granted name suppression because they feared representing him would make them unsafe.
The appeal outcome is due later
Bids to appeal convictions or sentences in New Zealand must be made within 20 working days. Tarrant was about two years late in seeking an appeal, filing documents with the court in September 2022.
He told the court Monday that his bid had been late because he hadn’t had access to the information required to make it.
The hearing is due to run for the rest of the week but the judges are expected to release their decision at a later date. If they reject Tarrant’s attempt to have his guilty pleas discarded, a later hearing will focus on his bid to appeal his sentence.