On Jul.18, President Donald Trump signed into law new regulations for a particular kind of cryptocurrency called stablecoins. This is seen as a major milestone for a sector that has has invested heavily in building its legitimacy and political strength, according to an Associated Press article.

The bill, known as the GENIUS Act, establishes initial guardrails as well as consumer protections for stablecoins. These  are tied to assets including the U.S. dollar, lowering its price volatility versus other cryptocurrency types. It passed both chambers of the U.S. Congress with wide bipartisan margins.

The new legislation is aimed at strengthening consumer confidence in the crypto sector that has rapidly become a major Washington power player due to large campaign donations and spending on lobbying, Associated Press reports. The law's passage comes as Trump has been promising  to make the U.S. the “crypto capital of the world.”

According to a report by the Journal of Accountancy, the legislation states that all stablecoin issuers will be subject to monthly examinations conducted by a registered public accounting firm. Those that have more than $50 billion in stablecoin issuance will have to undergo an annual financial statement audit falling under PCAOB auditing standards.