In a significant development for the cryptocurrency sector, President Donald Trump and Congress have rolled out new regulations this week focusing on stablecoins, which are cryptocurrencies pegged to tangible assets like the US dollar.

They passed and signed a new legislation referred to as the Genius Act.

Stablecoins represent a growing niche within the cryptocurrency market, proving to be quite lucrative for some major players. These coins offer stability against the often tumultuous price fluctuations associated with cryptocurrencies. Being tied to real-world assets—like the US dollar or gold—means that typically, one stablecoin equals one dollar, making them a more dependable digital currency compared to many other cryptocurrencies.

President Trump has introduced the Genius Act, which formalizes the regulation of stablecoins. This bill—the Stablecoin Bill—establishes guidelines for stablecoin issuers operating in the United States.

The momentum behind this regulatory effort has been bipartisan. The legislation aims to create a federal framework to oversee the stablecoin industry, which has thus far been governed by a mix of federal and state regulations.

As for the status, President Trump officially signed the bill with bipartisan support from the council on Friday.

What’s interesting is that Trump has consistently expressed his ambition to position the United States as the “global crypto capital.” During a White House event, he told industry executives, “This signature is a massive verification of your hard work and your pioneering spirit.” He even mentioned that passing this bill might represent “the biggest revolution in financial technology since the Internet itself.”

On the flip side, some Democrats have raised concerns, suggesting that the legislation could benefit Trump personally. His recent ventures into the crypto space complicate matters; earlier this year, he launched a project called Member Coin. Moreover, his family holds significant stakes in World Liberty Financial, a crypto project that introduced its own stablecoin and gained early support from an investment fund in the UAE.

A noteworthy aspect of the Genius Act is that while it prohibits members of Congress from having financial interests in stablecoins, it does not include similar restrictions for the President and his family.