Trump & Crypto: A Match Made in… Heaven? 😇

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A curious spectacle unfolded in Washington today, one might say, a veritable triumph of modernity over, well, common sense. Mr. Donald Trump, formerly of real estate and other…ventures, affixed his signature to the Guiding and Establishing National Innovation for US Stablecoins – or, as it’s unfortunately titled, the GENIUS Act. A rather grandiose name, wouldn’t you agree? It seeks to impose order upon the volatile realm of stablecoins, the first such attempt by the federal government. One wonders if they fully comprehend what they’ve unleashed. 🧐

The House of Representatives, in a burst of bipartisan – or perhaps simply bewildered – agreement, passed the bill with a vote of 308 to 122. Nearly half of the Democrats, it seems, succumbed to the siren song of digital currency. One can only surmise they were captivated by the promise of… progress?

President Trump Signs The GENIUS Act

Thus did Mr. Trump enact a law intended to regulate stablecoins, supposedly ushering in an era of mainstream acceptance for these ethereal monies. The GENIUS Act, having already navigated the Senate, now stands as a monument to… something. During the signing, the former president declared, with a characteristic flourish,

“This afternoon, we take a giant step to cement American dominance of global finance and crypto technology as we sign the landmark GENIUS Act into law. They’ve come a long way since the Biden administration, when they had no idea what you were all talking about and half of you were under arrest for no reason.”

A Huge Win For Crypto? (One Wonders…)

The crypto fraternity, naturally, are proclaiming this a monumental victory. They have, after all, been pleading for regulation – a remarkably strange request when one considers their professed disdain for governmental interference. Since the fever-dream beginnings of 2009, the industry has been a swirling vortex of volatility, speculation, and, occasionally, genuine innovation. Mr. Trump, ever keen to take credit, stated,

“This signing is a massive validation of your hard work and pioneering spirit. It’s good for the dollar and it’s good for the country.”

The Act requires stablecoins to be backed by the good old dollar (or something equally reliable, one presumes) and mandates audits for those exceeding $50 billion in market capitalization. Foreign issuers are also under scrutiny, though one suspects loopholes aplenty exist. The cognoscenti believe this will bolster the credibility of stablecoins, enticing banks, retailers, and even the common citizen to embrace this digital alchemy. The market, presently valued at a modest $260 billion, is predicted to balloon to $2 trillion by 2028. A truly astonishing projection, or simply wishful thinking? 🤔

The law’s passage is the fruit of lavish lobbying, with millions flowing to favoured candidates and, of course, the President’s campaign. During the ceremony, Mr. Trump graciously thanked the crypto executives for their patronage during the 2024 elections, declaring,

“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.”

A Shadow of Doubt

Not everyone is overjoyed, naturally. Democratic lawmakers, ever vigilant, have voiced concerns about the bill and, more importantly, the Trump family’s foray into the crypto world with World Liberty Financial. Their USD1 stablecoin, it appears, has become a rather large player. Maxine Waters, the ranking Democrat on the House Financial Services Committee, pointed out the rather glaring potential conflict of interest on Thursday, and also pointed to some frightening implications about foreign actors. She stated,

“It leaves the door open for foreign firms that present a major national security threat, including targets of sanctions, all to appease those in the Trump family’s inner circle, which has ties to those shady entities.”

Further complaints arose that the bill failed to prevent tech giants from issuing their own stablecoins. Scott Greytak, from Transparency International US, quipped,

“By failing to close known loopholes and protect America’s digital dollar infrastructure, Congress has risked making the U.S. financial system a global haven for criminals and adversarial regimes to exploit.”

One is left with the lingering impression that this Act, like so many others, is a chaotic and contradictory affair. A grand gesture, perhaps, or merely a distraction from more pressing matters. Time, as always, will tell. 🤷

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2025-07-19 14:23