In Depth: President Donald Trump signs the Genius Act into law, makes investing in crypto more secure

On Friday afternoon, President Donald Trump signed what is called the ‘Genius Act.’ It is the first ever stablecoin and crypto regulation bill in the United States and any part of the world. 

While some of the rules are still being drawn up over the next year, it’s supposed to help you feel more secure in making these types of investments in the future. 

For the first time in U.S. history there are now federal cryptocurrency regulations on the books. 

“I’m very in favor of crypto, Bitcoin, all of those different things because otherwise, China is going to take it over,” said President Trump. 

Prior to now, aside from usual fraud protections, investing in stablecoins came with high risk with the possibility but no guarantee of reward. 

“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 whatsoever,” said President Trump. 

On Friday, President Trump signed the Genius Act. The bipartisan crypto bill will set guidelines that would require stablecoin issuers to comply with U.S anti-money laundering and sanctions rules. 

Stablecoins are crypto assets that are tied to the value of other assets like the U.S. dollar, the most popular one being Bitcoin. 

“We take a giant step to cement the American dominance of global finance and cryptotech technology as we signed the landmark Genius Act into law, so congratulations to everybody. It’s a big deal,” said President Trump. 

In the past, especially under the Biden Administration, the federal government saw crypto as something the American people needed to be protected from, but after an election in which Trump himself campaigned in crypto bars, Trump said regulations need to be written to allow people to use their money as they please without funding criminal activity and leaving them susceptible to fraud. 

“Consumers, vendors, and people all over the world will then be able to use those stablecoins for ultra-low cost transactions that are cleared and settled in a matter of seconds rather than weeks and months,” said President Trump. 

In the Genius Act, many of the new regulations will be written in the next year by the Treasury Department.  

When it comes to how banks and other financial institutions must conduct their business if they want to do anything with stablecoins, those regulations will include consumer protections and ways to avoid money laundering. 

If you’re curious as to what the big deal is about Bitcoin, the U.S. dollar’s long-term buying power is in question and as the dollar weakens, things could become more expensive. 

Just like some people do with gold, people are turning to cryptocurrency as the currency of the future, and people are leaning heavily into Bitcoin. 

Bitcoin is a decentralized currency, which means unlike the U.S. dollar, political decisions like fluctuations between Democrats and Republicans aren’t tied to its value. 

Nearly one year ago, President Trump ran for his second term and he and Robert F. Kennedy, Jr. both campaigned at the Bitcoin Convention in Nashville. 

It was the first time a major presidential candidate acknowledged crypto in friendly terms and promised to craft regulations that would be friendly to investors but also prevent crime and manipulation. 

Crypto investors have been asking for regulations to be written here in the U.S because they have been concerned other countries would do it first, and it would be on terms they either didn’t like or were hostile to crypto. 

When asked if she was crypto friendly, Vice President Kamala Harris said she was open to reforms but did not have specifics. 

The price of Bitcoin continues to hover near some of its highest levels since its creation. The price of one Bitcoin sits around $17,000 – $18,000 as financial institutions began this month setting up exchange traded funds or ETFs, as they prepare to use Bitcoin into the future. 

It has fallen from its all-time high hit this month of around $123,000. 

The State of Oklahoma was on the verge of investing into Bitcoin this spring, but it was considered a risky investment. The measure failed in a very close vote. 

The bill that is now dead would have set up a Bitcoin reserve with some state funds and within state retirement accounts. 

Supporters of the bill said many other states and the federal government are making some investments in Bitcoin, and Oklahoma should not be left behind. 

However, the Senate’s top republican on the state’s budget — Appropriations Committee Chairman Chuck Hall — said what was being proposed was too risky and too expensive for Oklahoma right now. 

The Oklahoma State legislature passed a bill last spring to put safeguards and standards for people using Bitcoin ATMs and what the operators should have to do to stay in good standing with the state. 

The machines in the future will hopefully communicate, and you can access all your Bitcoin in one place. 

There are heavy warnings on the consumer side about sending Bitcoin to scammers overseas and how hard, if not impossible, it is to recover your Bitcoin if you are scammed out of it.