Trump Signs Landmark Crypto Legislation
President Donald Trump is rapidly increasing his wealth through cryptocurrency investments and has now enacted the first significant legislation in the U.S. aimed at regulating the crypto sector. During a ceremony at the White House on July 18, Trump signed the Genius Act, which establishes a regulatory framework specifically for stablecoins—cryptocurrencies that maintain a stable value by being pegged to established assets like the U.S. dollar.
Details of the Genius Act
At the signing event, Trump expressed enthusiasm for the potential impact of the legislation, stating, “This could be perhaps the greatest revolution in financial technology since the birth of the internet itself. A lot of people are saying that. What do you guys think? If you say yes, I’m saying yes.” He was joined by Republican lawmakers and crypto industry leaders who supported the bill. Trump noted the significance of the occasion, saying, “Nobody’s gained the respect in such a short period of time. This signing is a massive validation of your hard work and your pioneering spirit and your ability to never give up.”
Implications for the Crypto Industry
Crypto advocates contend that this new law will safeguard consumers and set vital industry standards, paving the way for stablecoins to gain mainstream acceptance for digital transactions and other financial applications. The legislation received strong bipartisan support, passing the House with a vote of 308-122 after earlier approval in the Senate. Trump humorously remarked, “It’s a very important act. The Genius Act. They named it after me,” eliciting laughter from those present.
Trump’s Support for Crypto
As part of his campaign for the 2024 election, Trump has positioned himself as a proponent of crypto-friendly policies, contrasting sharply with the current Biden administration. He noted, “It’s good for the dollar and it’s good for the country. And that’s why I backed you at an early stage. And I also did it for the votes ‒ because you did come out and vote, I will say.” Since his return to the White House in January, Trump has cultivated a strong relationship with the crypto sector, which has also contributed to his personal financial success.
Trump’s Financial Gains from Crypto
A Bloomberg analysis revealed that Trump has amassed approximately $620 million from his crypto ventures during his current term, including around $460 million from World Liberty Financial, a decentralized finance platform that offers its own tokens. Additionally, Trump’s meme coin, known as $TRUMP, is estimated to have generated $320 million in fees, although the exact distribution of these earnings remains unclear.
Concerns Over Ethics and Regulation
In May, Trump hosted a dinner at his Virginia golf club attended by 220 investors who collectively invested $148 million into his $TRUMP meme coin, raising ethical questions from critics, especially Democrats. They have pointed to his increasing involvement in the crypto sector as grounds for concern regarding the legislation. Senator Elizabeth Warren from Massachusetts articulated these worries, stating, “The Genius Act will accelerate Trump’s corruption by supercharging the size of the stablecoin market and the reach and profitability of Trump’s USD1. This bill will make our President, Donald Trump, the regulator of his own financial product for the first time in American history.”
Additional Legislative Developments
This week, the Republican-controlled House also passed two additional crypto bills, pending Senate approval. One of these measures, which passed with a 219-210 vote solely supported by Republicans, aims to prevent the Federal Reserve from establishing a central bank for cryptocurrency. The other, dubbed the Clarity Act, seeks to implement industry-favored regulations, which would limit the Securities and Exchange Commission’s oversight of cryptocurrency. It received a favorable vote of 294-134, with 78 House Democrats aligning with Republicans. Trump asserted, “We’re going to be growing it even more, more than anyone ever thought.”
