US President Donald Trump signed the GENIUS Act:
US President Donald Trump signed the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins), establishing a formal regulatory framework for payment stablecoins, marking a new phase of government engagement with digital assets. The law boosts user confidence with consumer protections and aims to make the US a global crypto leader.The Stablecoins are cryptocurrencies that aim to maintain a stable value by being pegged to traditional assets like the USD or gold.The definition excludes digital national currencies, deposits (including tokenized deposits), and securities. Stablecoins are designed for everyday use, offering price stability unlike volatile cryptocurrencies like Bitcoin. They enable easy value transfer, support financial services, and maintain stability through collateral reserves or algorithmic supply control. Popular stablecoins like Tether and USD Coin are backed by the US dollar. India does not currently recognise stablecoins, treating all cryptocurrencies as Virtual Digital Assets (VDAs) under Section 2(47A) of the Income Tax Act, 1961. In 2023, VDAs were brought under the Prevention of Money Laundering Act, 2002, to curb misuse and enhance oversight.
