The US Congress has enacted the first-ever legislation related to cryptocurrency in the nation’s history. This document establishes a regulatory framework for stablecoins.

This information is reported by BBC.

The bill, titled Genius Act, sets forth the legal guidelines for stablecoins—cryptocurrencies backed by stable assets, including US dollars. The legislation garnered support from a majority of Republicans and about half of the Democrats.

Donald Trump, who currently enjoys backing from the cryptocurrency sector, is expected to sign the document by Friday. The president, who previously criticized cryptocurrencies, now has business ties with companies in this industry.

The provisions of the law require stablecoin issuers to back their coins one-to-one with reliable assets. The law also aims to prevent the US from falling behind countries that have already adopted digital payment solutions.

However, some experts caution against potential risks. "This represents a fundamental misunderstanding of the risks associated with these instruments," stated a coalition of consumer and civil rights groups in their appeal to Congress. They warn that consumers may mistakenly perceive stablecoins as secure financial instruments.