U.S. Senate Passes Stablecoin Regulation Bill, Trump Family to Launch USD1

U.S. Senate Passes Stablecoin Regulation Bill, Trump Family to Launch USD1

Interest in stablecoins is surging as the U.S. Senate moves toward regulation and the Trump family announces plans to launch its own stablecoin. On March 14, the U.S. Senate Banking Committee approved the GENIUS Act, a bill aimed at establishing a regulatory framework for stablecoins. Later, on March 25, World Liberty Financial, a crypto platform founded by members of the Trump family, revealed plans to issue a stablecoin called USD1.

Stablecoins are designed to maintain a stable value, in contrast to the high volatility of typical cryptocurrencies. The most well-known example is Tether (USDT), which is pegged 1:1 to the U.S. dollar. Stablecoins generally fall into three categories:

• Fiat-backed, which are collateralized by traditional currencies like the U.S. dollar or the euro,

• Crypto-backed, supported by assets such as Bitcoin or Ethereum, and

• Algorithmic stablecoins, which use algorithms to maintain price stability.

Due to their price stability, stablecoins are widely used across exchanges, DeFi platforms, and even in international trade. They offer faster and more convenient payment options compared to traditional currencies. In South Korea, for instance, nearly 10% of trade settlements are already conducted using stablecoins, highlighting their growing real-world utility.

As regulatory adoption increases, the usage of stablecoins is expected to expand significantly, solidifying their role as a core component of the digital asset ecosystem.