US President Donald Trump on Friday signed a law to create a regulatory regime for dollar-pegged cryptocurrencies known as stablecoins — a milestone that could pave the way for digital assets to become a common method of making payments and transferring money.
The law represents a major victory for crypto advocates, who have long pushed for a regulatory framework in the hopes of gaining legitimacy for an industry that began in 2009 as a digital Wild West marked by innovation and speculative frenzy.
US Treasury Secretary Scott Bessent said in a statement that the new regime would reinforce the dollar’s role as the global reserve currency, expand access to the dollar-based economy and increase demand for US treasuries, which back stablecoins.
Stablecoins are designed to maintain a constant value — typically pegged 1:1 to the US dollar — and their use has surged, particularly among crypto traders moving funds between digital assets. The industry hopes they will see broader use in day-to-day payments.
The new law requires stablecoins to be backed by liquid assets, such as US dollars and short-term Treasury bills. Issuers must publicly disclose the composition of their reserves on a monthly basis.
Crypto companies argue that the legislation will strengthen stablecoins’ credibility and encourage greater adoption by banks, retailers and consumers for real-time fund transfers.
The stablecoin market, valued at over $260 billion, could grow to $2 trillion by 2028 under the new regulatory regime, Standard Chartered estimated earlier this year.
The law's passage marks the culmination of a long lobbying effort by the crypto sector, which donated more than $245 million in last year’s elections to support pro-crypto candidates, including Trump, according to Federal Election Commission data.
The Republican president — who launched his own coin earlier this year — thanked crypto executives for their support during the 2024 presidential campaign, saying: “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.”
Major US banks are now weighing deeper entry into the crypto space as regulatory clarity improves. However, initial steps are expected to focus on pilot projects, partnerships and limited trading activity, Reuters reported in May.
Several crypto companies, including Circle and Ripple, are seeking banking licences, which would allow them to reduce costs by cutting out intermediary banks.
Trump has sought to broadly reshape US cryptocurrency policy. In March, he signed an executive order to establish a strategic bitcoin reserve. He also launched a meme coin called $TRUMP in January and holds a partial stake in crypto firm World Liberty Financial.
