USA passes ‘crypto law’
Tha ragulatory framework for "stablecoin," a type of cryptocurrency, is established by the bill.
Tha national cryptocurrency bill has been passed by US lawmakers.
This is an important milestone for this once infant industry. Because many people have been lobbying Congress for years to regulate crypto or digital currency. At the same time, they also spent billions of dollars in last year’s election to campaign for some candidates who are in favor of crypto, including Donald Trump, the BBC reported.
Stablecoins are a type of digital currency, which is usually used to store cash or buy other cryptocurrencies. The value of these coins is guaranteed by government bonds, such as the US Treasury. For example, each stablecoin is backed by $1 or the equivalent in government currency. Its value is therefore constant.
Tha bill is anticipated to be signed by Trump on Friday. Because the bill passed the US House of Representatives on Thursday, which was approved by the Senate last month.
Tha BBC reports that Trump has supported three cryptocurrency laws in Washington, including the "Genius Act."
The president once jokingly called crypto a scam. However, after receiving support from the crypto industry in this presidential election, his opinion changed and he entered the industry as a businessman, especially Trump has also developed relationships with companies such as 'World Liberty Financial'.
Supporters of the bill say that it is designed to provide clear rules for the rapidly growing crypto industry. So that the United States can keep up with modern payment systems.
Such regulations have been highly demanded by the cryptocurrency industry. Because, they hope, it will make more people use digital currency and make it more popular in the lives of ordinary people.
The bill states that the value of each unit of stablecoin must be equal to exactly one US dollar or another safe asset, that is, the cryptocurrency that is being Collateral must be in the form of dollars or other safe assets. The ability to move money between cryptocurrency tokens is provided by stablecoins.
The BBC reports that the use of these coins, especially those that are considered to have low price fluctuations, has grown rapidly in the past few years.
Meanwhile, critics say that the law will create new risks in the US financial system. Stablecoins are legalised, but user protections are insufficient.
They say that the law will further increase the participation of various technology companies in various activities like banks. However, these technology companies do not have the same control system as banks. In addition, if a stablecoin company fails to survive, they will leave customers hanging through a complicated bankruptcy process.
Crypto critics also tried to build a backlash against the bill. They said that voting for the bill would actually mean supporting Trump's business activities, including his family and the promotion of cryptocurrency.
The bill still received support from Democrats, about half of whom were in favor of it. At this same time, Republicans also supported it.
Meanwhile, this week, the world's largest digital currency, Bitcoin, set a new record by reaching $121,000 for the first time, which is the highest price in the history of the cryptocurrency.
