Latest news with #cryptoindustry
CTV News
7 days ago
- Business
- CTV News
Trump signs new stablecoin regulations into law, a major milestone for crypto industry
President Donald Trump holds up the GENIUS Act, a bill that regulates stablecoins, a type of cryptocurrency, after he signs the bill in the East Room of the White House, Friday, July 18, 2025, in Washington. (AP Photo/Alex Brandon) WASHINGTON — U.S. President Donald Trump on Friday signed into law new regulations for a type of cryptocurrency, a major milestone for an industry that has spent heavily to strengthen its legitimacy and political might. The GENIUS Act sets initial guardrails and consumer protections for stablecoins, which are tied to assets like the U.S. dollar to reduce price volatility compared with other forms of cryptocurrency. It passed both the House and Senate with wide bipartisan margins. The new law is meant to bolster consumer confidence in the crypto industry, which has quickly become a major power player in Washington thanks to massive campaign donations and spending on lobbying. Its passage comes as Trump had repeatedly pledged to make the U.S. the 'crypto capital of the world.' 'For years you were mocked and dismissed and counted out,' Trump told crypto industry executives at a White House bill signing attended by about 200 people, including several top GOP lawmakers. 'This signing is a massive validation of your hard work and your pioneering spirit.' The crypto industry has long complained it was unfairly targeted by former President Joe Biden's administration and spent heavily to help Trump win last year's election. The president lavished praise on crypto leaders during his speech Friday, saying 'nobody has gained the respect in such a short period of time.' Trump said helping the cryptocurrency industry was 'good for the dollar and it's good for the country.' 'That's why I backed you at an early stage,' said Trump, who had previously been a skeptic of cryptocurrency before embracing it. His administration has taken several early steps to boost the crypto industry, including the Securities and Exchange Commission dropping several enforcement actions against large crypto companies. Trump then added a candid admission about the political calculus of his support for the crypto industry: 'And I also did it for the votes,' he said, drawing laughter from the audience. The president also joked that lawmakers had named the GENIUS Act after him. The acronym stands for 'Guiding and Establishing National Innovation for U.S. Stablecoins.' The use of stablecoins has grown dramatically in recent years. Circle, the U.S.-based issuer of one of the most popular cryptocurrencies, made its debut on the New York Stock Exchange earlier this year and quickly saw its value soar amid heavy interest from crypto enthusiasts and investors. Stablecoin issuers make profits by collecting the interest on the assets they hold in reserve to back their stablecoins. A provision in the GENIUS Act bans members of Congress and their families from profiting off stablecoins. But that prohibition does not extend to the president and his family, even as Trump builds a crypto empire from the White House. His family holds a significant stake in World Liberty Financial, a crypto project that launched its own stablecoin earlier this year and received an early boost from an investment fund in the United Arab Emirates. The House also passed two other bills Thursday that are meant to help the crypto industry. One creates a new market structure for cryptocurrency, and the other bans the Federal Reserve from issuing a new digital currency. Both measures now go to the Senate. Seung Min Kim And Alan Suderman, The Associated Press
CBC
7 days ago
- Business
- CBC
Trump signs law to create regulatory regime for stablecoins, a huge win for crypto backers
U.S. President Donald Trump on Friday signed a law to create a regulatory regime for U.S.-dollar-pegged cryptocurrencies known as stablecoins, a milestone that could pave the way for the digital assets to become an everyday way to make payments and move money. The GENIUS Act passed by a vote of 308 to 122, receiving support from nearly half the Democratic members and most Republicans in the House of Representatives. The law is a huge win for crypto supporters, who have long lobbied for such a regulatory framework in a bid to gain greater legitimacy for an industry that began in 2009 as a digital Wild West famed for its innovation and speculative chaos. "This signing is a massive validation of your hard work and pioneering spirit," Trump said at a signing event in the White House that included several crypto executives. Stablecoins are designed to maintain a constant value, usually a 1:1 U.S. dollar peg, and their use has exploded, notably by crypto traders moving funds between tokens. The industry hopes they will enter mainstream use for sending and receiving payments instantly. The new law (which stands for Guiding and Establishing National Innovation for U.S. Stablecoins Act) requires stablecoins to be backed by liquid assets — such as U.S. dollars and short-term bills — and for issuers to disclose publicly the composition of their reserves monthly. Crypto companies and executives have argued such legislation will enhance stablecoins' credibility and make banks, retailers and consumers more willing to using them to transfer funds instantly. Potential to grow The stablecoin market, which crypto data provider CoinGecko said is valued at more than $260 billion US, could grow to $2 trillion US by 2028 under the new law, Standard Chartered bank estimated earlier this year. The law's passage culminates from a long lobbying effort by the industry, which donated more than $245 million US in last year's elections to aid pro-crypto candidates, including Trump, according to Federal Election Commission data. The Republican president, who has since launched his own coin, in turn aligned himself with the industry and told a crypto conference during his presidential campaign that he would make the United States "the crypto capital of the planet." But Democrats and critics have said the law should have blocked big tech companies from issuing their own stablecoins, which could increase the clout of an already powerful sector, contained stronger anti-money laundering protections and prohibited foreign stablecoin issuers. Big banks consider cryptocurrencies Big U.S. banks are internally debating an expansion into cryptocurrencies as regulators give stronger backing to digital assets, but banks' initial steps will be cautious, centring on pilot programs, partnerships or limited crypto trading, Reuters reported in May. Meanwhile, several crypto firms, including Circle and Ripple, are seeking banking licences. This would enable the companies to settle payments faster and cut costs by bypassing intermediary banks, as well as enhancing their legitimacy. Backers of the law have said it could potentially give rise to a new source of demand for short-term U.S. government debt, or T-bills, because stablecoin issuers will have to purchase more T-bills to back their assets. But others worry this activity could increase volatility in the Treasury bills market. In an April research note, JPMorgan analysts estimated that stablecoin issuers could become the third-largest buyer of Treasury bills in the coming years. Trump has sought to broadly overhaul U.S. cryptocurrency policies, signing an executive order in March establishing a strategic bitcoin reserve. The president has moved personally into digital assets, launching a meme coin called $TRUMP in January and partly owning crypto company World Liberty Financial. Democrats in Congress grew increasingly critical of Trump and his family members promoting their personal crypto projects, and their ire threatened to derail the legislation at one point. The White House has said there are no conflicts of interest for Trump and that his assets are in a trust managed by his children.
Yahoo
7 days ago
- Business
- Yahoo
Trump signs new stablecoin regulations into law, a major milestone for crypto industry
WASHINGTON (AP) — President Donald Trump on Friday signed into law new regulations for a type of cryptocurrency, a major milestone for an industry that has spent heavily to strengthen its legitimacy and political might. The GENIUS Act sets initial guardrails and consumer protections for stablecoins, which are tied to assets like the U.S. dollar to reduce price volatility compared with other forms of cryptocurrency. It passed both the House and Senate with wide bipartisan margins. The new law is meant to bolster consumer confidence in the crypto industry, which has quickly become a major power player in Washington thanks to massive campaign donations and spending on lobbying. Its passage comes as Trump had repeatedly pledged to make the U.S. the 'crypto capital of the world.' 'For years you were mocked and dismissed and counted out," Trump told crypto industry executives at a White House bill signing attended by about 200 people, including several top GOP lawmakers. 'This signing is a massive validation of your hard work and your pioneering spirit.' The crypto industry has long complained it was unfairly targeted by former President Joe Biden's administration and spent heavily to help Trump win last year's election. The president lavished praise on crypto leaders during his speech Friday, saying 'nobody has gained the respect in such a short period of time.' Trump said helping the cryptocurrency industry was 'good for the dollar and it's good for the country.' 'That's why I backed you at an early stage,' said Trump, who had previously been a skeptic of cryptocurrency before embracing it. His administration has taken several early steps to boost the crypto industry, including the Securities and Exchange Commission dropping several enforcement actions against large crypto companies. Trump then added a candid admission about the political calculus of his support for the crypto industry: 'And I also did it for the votes,' he said, drawing laughter from the audience. The president also joked that lawmakers had named the GENIUS Act after him. The acronym stands for 'Guiding and Establishing National Innovation for U.S. Stablecoins.' The use of stablecoins has grown dramatically in recent years. Circle, the U.S.-based issuer of one of the most popular cryptocurrencies, made its debut on the New York Stock Exchange earlier this year and quickly saw its value soar amid heavy interest from crypto enthusiasts and investors. Stablecoin issuers make profits by collecting the interest on the assets they hold in reserve to back their stablecoins. A provision in the GENIUS Act bans members of Congress and their families from profiting off stablecoins. But that prohibition does not extend to the president and his family, even as Trump builds a crypto empire from the White House. His family holds a significant stake in World Liberty Financial, a crypto project that launched its own stablecoin earlier this year and received an early boost from an investment fund in the United Arab Emirates. The House also passed two other bills Thursday that are meant to help the crypto industry. One creates a new market structure for cryptocurrency, and the other bans the Federal Reserve from issuing a new digital currency. Both measures now go to the Senate. Seung Min Kim And Alan Suderman, The Associated Press Sign in to access your portfolio
Yahoo
05-07-2025
- Business
- Yahoo
What Circle's surge signals for the crypto IPO market
Brianne Lynch, EquityZen head of market insight, joins Market Catalysts with Brad Smith to discuss Circle's (CRCL) surge since its initial public offering (IPO) and what that success could signal for other crypto-related names looking to go public in the future. To watch more expert insights and analysis on the latest market action, check out more Market Catalysts here. Dan Lynch who is the equities and head of market inside. And one of the amazing areas that we've been tracking is the not just market reception to some of the strategic plays around cryptocurrency, but the other potential players that are still waiting in the wings to make a market entry. Circle was successful, but are there others that are in the crypto landscape, either platform or crypto touching and holding that you think could receive a solid market reception here? Sure. So, Circle's IPO was really this big vote of confidence for the crypto and stable coin industry at large. And they really timed it well when you think of some of the bigger macro pieces at play. You have a crypto friendly administration in place. There's stable coin legislation out now that is really legitimizes stable coin. And then you have some of the biggest banks and retailers in the world talking about launching their own coins. Coinbase is now an S&P 500 company. So all these things are tailwinds to support these companies. When you look at others that might follow, Gemini is one that has confidentially filed. But several other of the top players in the private markets are continuing to grow. You know, Kraken, we just talked to the co-CEO there. Ripple and others are really growing in the private markets. And another lens on that is, you know, this idea of how tokenization can play a role in broadening access to the private markets. And that's something that the SEC chairman actually talked about this morning. It's going to be fascinating to see how many of those companies are able to leverage this moment and this momentum and perhaps appeal to some of the investors in public equity landscape right now.
Tahawul Tech
03-07-2025
- Business
- Tahawul Tech
Bybit helped contain crypto crisis after a hefty hack
Bybit, the world's second-largest cryptocurrency exchange by trading volume, has been featured in a new research report by Glassnode, the leading onchain market intelligence provider trusted by top-tier financial institutions worldwide. The findings highlight Bybit's unprecedented recovery rate and how the exchange's zero-time response helped contain a potential crisis, absorbing market shock that could have sent the crypto industry into a downward spiral. The comprehensive report, titled Digital Asset Market Resilience: A Deep Dive into the Bybit-Lazarus Hack, analyses the timeline, trading activity, and critical market data from February 2025's unprecedented cyber attack—the largest crypto hack in history at a hefty $1.4 billion—while benchmarking it against major disruption events across both the digital asset and traditional financial markets. Defying historical patterns of financial crises and crypto collapses, the industry's response to the Bybit-Lazarus hack heralds a new era of digital asset market resilience. Perpetual Open Interest and Volumes Recovery The report examined the performance of three key assets traded on Bybit: BTC, ETH, and SOL. A day after the hack on February 22, ETH open interest on Bybit experienced one of its most severe contractions on record due to widespread position unwinding and forced deleveraging. However, over the following two months, open interest changes turned predominantly positive, with most values returning to long-term averages and at times exceeding normal volatility thresholds. Both BTC and SOL followed a similar pattern to ETH's after the breach. According to the report, at the time of publication, all three had been restored to pre-hack levels, with BTC and SOL achieving significant milestones in May—BTC reached a new high in futures perpetual open interest at $8.5 billion, while SOL hit $1.2 billion. 'When examining perpetual trade volumes for the Ethereum asset, we observe stability in trading activity before and after the hack event, with volumes remaining largely unchanged. Additionally, following Ethereum's outperformance in recent weeks, trade volume on Bybit has surged, reaching a new all-time high of $8.5B/day, a remarkable milestone given that Ethereum was the primary asset targeted in the hack', wrote the analysts in the report. Narrowing Spreads: Liquidity Conditions Stabilised Following the hack, Bybit's deep liquidity—long considered one of its key competitive advantages—was challenged. Its market liquidity experiencing immediate stress as bid-ask spreads widened drastically and market depth contracted sharply. The phenomenon indicated widespread participant withdrawal during the period of uncertainty. The exchange completed a record 350,000 withdrawals within 12 hours after the breach. However, both metrics have shown steady recovery since mid-April, with bid-ask spreads returning to near pre-incident levels and market depth actually surpassing pre-hack values by May, signalling restored market maker confidence and normal trading conditions. Breaking the Crisis Pattern: Why the Bybit Hack Didn't Trigger Industry Collapse Instead of cascading into industry-wide panic and systemic pressure, the hacking incident left only a temporary dent in Bybit's liquidity before the exchange bounced back to pre-hack levels. To assess Bybit's operational stability, Glassnode developed a proprietary model based on two key indicators: Internal Reshuffling Ratio and Whale Withdrawal Ratio. Both metrics showed a period of post-hack spikes before returning to normal levels. The report attributed the prevention of market spillover to Bybit's 'swift operational response, transparent communication, and strong internal controls', which enabled the exchange to protect customer funds, maintain platform integrity, and contain contagion risk. The report adds to growing analytical literature on the historic hacking incident, whose aftermath demonstrated the industry's evolving resilience by avoiding systemic collapse seen in previous crises like FTX and Terra. Bybit not only contained potential market-wide damage but saw key assets reach new trading records, proving institutional-grade practices are now embedded in digital asset markets. This incident marks a pivotal shift in crypto's capacity to absorb major disruptions, potentially transforming investor confidence and accelerating industry maturation. To find out more about the report, users may visit Glassnode Insights. Image Credit: ByBit & Glassnode
