Detailed Analysis and Professional Report: Trump’s Stablecoin Legislation and SEC’s Stance on Meme Coins
Introduction
Recent times in the U.S. have unveiled big changes in the rules about digital assets, like steady coins and meme coins. This study dives into how President Trump views steady coin laws and the SEC’s take on meme coins.
Trump’s Stablecoin Legislation
Back on February 4, 2025, Senator Bill Hagerty brought forth the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This law wants to craft a federal system for managing and overseeing payment steady coins and their creators. Backed by key senators, this Act has garnered strong support from players in the crypto world.
Key Provisions of the GENIUS Act
- Permitted Payment Stablecoin Issuers: Only approved groups can produce payment steady coins. Big issuers with over $10 billion in value must abide by federal controls, while smaller ones can stick with state regulations if they meet federal criteria.
- Definition of Payment Stablecoins: These online assets are meant for transactions or clearing, fully secured by U.S. dollars or other top-grade assets. Issuers need public policies for redemption and must keep the price stable tied to the U.S. dollar.
- Regulatory Framework: This Act sets strict federal norms for creators, mandating fully backed reserves, reserve separation, monthly checks, and financial requirements. It also bans rehypothecation.
- State and Federal Oversight: Smaller creators can stick to state rules but are urged to switch to federal standards if they surpass $10 billion in value.
- Customer Protection: Service providers must meet customer protection rules, including oversight, fund separation, and regularly examined reports.
- Classification of Stablecoins: The law clears up that payment steady coins are not stocks, ensuring they are seen as payment tools not investment products.
SEC’s Stance on Meme Coins
Even though the SEC hasn’t directly talked about meme coins lately, its focus on shaping an overall set of rules for crypto assets hints that meme coins will likely come under similar scrutiny. The SEC’s creation of a Crypto Task Force, guided by Commissioner Hester Peirce, is meant to regulate crypto assets through clear guidelines, not just enforcement actions.
Trump Administration’s Executive Order
On January 23, 2025, President Trump signed an executive order titled Strengthening American Leadership in Digital Financial Technology. This move signals a push to back innovation in digital assets by giving clear rules and backing the growth of dollar-backed steady coins. It also bars the rollout of a U.S.-issued central bank digital currency (CBDC).
Key Policy Shifts
- Promoting Innovation: The order aims to spur innovation by providing clear rules, moving away from the previous admin’s focus on risk.
- Support for Stablecoins: It highlights the rise of dollar-backed steady coins, aligning with the GENIUS Act’s goals.
- CBDC Prohibition: The order firmly says no to a U.S.-issued CBDC, showing caution about central bank digital currencies.
Conclusion
The Trump team’s push to regulate steady coins and the SEC’s wider plan for crypto standards signal big shifts in how digital assets are managed in the U.S. The GENIUS Act and other laws look to bring clarity and oversight to steady coins, while the SEC’s approach hints at a more organized set of rules for all crypto assets. As these policies take shape, they’ll likely define the future of digital asset innovation and rules in the U.S.