President Donald Trump signed new regulations for stablecoins into law on Friday, marking a significant development for the cryptocurrency industry. The legislation, known as the GENIUS Act, establishes initial guidelines and consumer protections for stablecoins, which are cryptocurrencies pegged to stable assets like the U.S. dollar. This law aims to enhance consumer confidence in a rapidly growing sector that has gained considerable influence in Washington through substantial campaign contributions and lobbying efforts.

The GENIUS Act received bipartisan support, passing both the House and Senate with strong margins. During the signing ceremony at the White House, attended by around 200 people, including prominent Republican lawmakers, Trump expressed his support for the crypto industry. "For years you were mocked and dismissed and counted out," he told industry executives. "This signing is a massive validation of your hard work and your pioneering spirit."

Trump has previously stated his intention to position the U.S. as the "crypto capital of the world." He emphasized the importance of the cryptocurrency sector, saying, "That’s why I backed you at an early stage." The president acknowledged his earlier skepticism about cryptocurrency but has since embraced it, noting that his administration has taken steps to support the industry, including the Securities and Exchange Commission dropping enforcement actions against major crypto companies.

The GENIUS Act also includes a provision that prohibits members of Congress and their families from profiting off stablecoins. However, this restriction does not apply to the president and his family. Trump's family holds a significant stake in World Liberty Financial, a crypto project that launched its own stablecoin earlier this year.

The legislation comes as the use of stablecoins has surged. Circle, a prominent issuer of stablecoins, recently debuted on the New York Stock Exchange, reflecting growing interest from investors. Stablecoin issuers profit by collecting interest on the assets they hold in reserve.

In addition to the GENIUS Act, the House passed two other bills aimed at supporting the crypto industry. One bill creates a new market structure for cryptocurrency, while the other prohibits the Federal Reserve from issuing a digital currency. Both measures are now headed to the Senate for consideration.

The passage of these bills represents a pivotal moment for the cryptocurrency sector, which has faced regulatory challenges in the past. As federal regulators prepare to implement the new regulations, it may take time before the public sees the effects of these legislative changes.