How Has Trump’s Cryptocurrency Bill Affected the Market?
Cryptocurrency has been greatly affected by the New GENIUS Act that was recently signed into law and will directly affect stablecoins.
Quick overview
- The GENIUS Act, recently signed into law by Trump, aims to make stablecoins more accessible and widely available.
- Since the bill's approval, cryptocurrency prices have surged, with Ethereum, Solana, and XRP seeing increases of over 20%.
- The Act is expected to enhance public confidence in stablecoins, potentially leading to broader cryptocurrency adoption.
- Concerns have been raised about the bill benefiting Trump's family, who hold a significant stake in a company linked to a stablecoin.
Live BTC/USD Chart
On Thursday, the GENIUS Act was approved by the House of Representatives, and on Friday, Trump signed the bill into law, and the cryptocurrency market has been absolutely wild since then.
The GENIUS Act makes stablecoins easier to access and more widely available, and Trump’s approval of that act has caused cryptocurrency prices to skyrocket. The value of Bitcoin (BTC) has probably changed the least compared to other coins, but Ethereum (ETH), Solana (SOL), and XRP (XRP) have all seen more than 20% increases since Friday.
BTC/USDCrypto values have not seen this kind of dramatic surge since Trump was elected to the office of the presidency. Now that he has made good on several of his crypto campaign promises, investors are excited about what will come next. There is tremendous potential behind this seemingly simple government Act.
How GENIUS Changes Cryptocurrency
What this Act does for stablecoins is open them up to the public and make investors feel safer about using them. That will have a knockdown effect on the entire industry, and investors realize that.
Once stablecoins become easier to use cryptocurrency will be more widely used and should become more commonplace. Many people currently use stablecoins as a stepping stone to other cryptocurrencies, buying the stablecoins and holding them until they are ready to buy other types of digital coins.
That is because stablecoins tend to hold their value, as they are tied to another currency, usually fiat currency like the U.S. dollar. Several coins are tied to the dollar at this moment, including USD Coin (USDC) and Tether (USDT). The GENIUS Act makes it even easier for investors to do this, ensuring that the path between fiat currency and a digital coin like Bitcoin is less convoluted and more accessible.
There is concern that the bill will help the Trump family’s own stablecoin and that the reason this type of crypto bill was passed was to do just that. Trump and his family own a 60% stake in World Liberty Financial, the parent company behind the USD1 stablecoin.
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