Aug. 26 (UPI) — President Donald Trump threatened to raise tariffs and restrict U.S. chip exports on countries that have a digital services tax.
He wrote on Truth Social Monday that digital service taxes, largely implemented by Britain and the European Union, “are all designed to harm, or discriminate against, American Technology.”
“I put all Countries with Digital Taxes, Legislation, Rules, or Regulations, on notice that unless these discriminatory actions are removed, I, as President of the United States, will impose substantial additional Tariffs on that Country’s Exports to the U.S.A.,” Trump wrote.
He added that the United States would also “institute Export restrictions on our Highly Protected Technology and Chips.”
“Show respect to America and our amazing Tech Companies or, consider the consequences!” he wrote.
The taxes are meant to apply only to the largest tech companies like Alphabet, Meta and Amazon, which are based in the United States. The countries that have digital services taxes argue that tech titans like Amazon operate within their borders and generate huge profits from their people while paying little or no taxes to those governments.
The U.K.’s digital services tax raises about $1.1 billion annually from global tech companies through a 2% tax on revenues. Trump said these taxes “outrageously give a complete pass to China’s largest tech companies.”
France, Italy and Spain also have DSTs.
Trump declared in June that he would cut off all trade talks with Canada over the tax, which it had recently passed. When Canada quickly removed its tax just before it was set to turn on, the White House boasted that Canada had “caved” to pressure.
In February, Trump signed an executive order titled Defending American Companies and Innovators from Overseas Extortion and Unfair Fines and Penalties, threatening tariffs.
In April, it emerged that Keir Starmer offered big U.S. tech companies a reduction in the headline rate of the DST to appease Trump, at the same time applying the tax to companies from other countries.
Gulf fintechs are challenging banks’ and brokerages’ long-standing dominance, as the GCC forcefully pursues a digital future.
Across the Gulf Cooperation Council (GCC) states, a new generation of fintech start-ups are challenging the dominance of incumbent banks and brokerage firms. With the United Arab Emirates emerging as a hub, the region is experiencing a widespread digitalization of financial services, driven by mobile-first platforms, specific regulations, and growing consumer demand for transparency, specialization, efficiency, and speed.
“The GCC fintech ecosystem is undergoing a structural shift, shaped by macroeconomic diversification, digital policy agendas, and a wave of consumer-first innovation,” says Said Murad, a senior partner at UAE-based venture capital firm Global Ventures. “Trends attracting investor attention include the rise of open banking, increased adoption of embedded financial services, and mainstreaming of alternative lending and wealth solutions.”
Dubai International Financial Centre (DIFC) in the lead, the UAE now hosts more than 1304 AI, FinTech and innovation companies. Meanwhile, Abu Dhabi Global Market (ADGM) has become a testbed for open banking and digital asset regulation. Together, they are positioning the emirates as a major global fintech ecosystem.
From buy-now-pay-later (BNPL) services and payment platforms to Islamic digital banks and brokerage apps, Gulf fintechs are gaining traction with both users and investors. Start-ups like Tabby and Tamara have made their mark in consumer credit while wealthtech platforms like Sarwa have made investing more accessible to a broader demographic.
“Digital payments dominate the GCC fintech landscape, projected to hold a 90% market share and volumes of $7 trillion by 2032,” says Ivo Detelinov, general partner at Salica Oryx Fund. “Open banking is gaining traction, with Bahrain pioneering regulations and Saudi Arabia having implemented its Open Banking Policy in 2022. Islamic fintech is also on the rise, with assets in Islamic banking projected to reach $4 trillion by 2026, primarily driven by GCC nations.”
Challenging The Old Guard
Fintech development is increasingly pressuring incumbent Gulf banks and brokers to adapt. Many traditional institutions still rely on legacy infrastructure, manual processes, and rigid compliance frameworks, slowing their ability to innovate and respond to changing consumer expectations.
“Without bold investment in modernization, established players risk being outpaced by digital-native challengers offering faster, more agile, and lower-cost services,” warns Sara Grinstead, managing director at Alvarez & Marsal.
The brokerage sector has also been slow to adapt. While some firms have introduced digital onboarding or trimmed commissions, many still lack the user-friendly design, transparency, and product diversity that a younger, more globalized investor base expects.
A key advantage of fintechs is structural, argues Samy Mohamed, CEO of Tabadulat, a new ADGM-based, digital Shariah-compliant brokerage.
“Incumbent brokers are often tied to legacy systems and limited by domestic markets, making them slow and expensive,” he says. “As a global, digitally native platform, we have a significant cost advantage that we pass directly to our customers.”
Independence is Tabadulat’s most powerful advantage, he adds. “We aren’t beholden to outdated models. This allows us to innovate new Shariah-compliant financial structures that were previously unattainable to retail investors.”
Challenger Banks Gain Ground
The UAE is becoming a hotspot not just for fintech growth but also in driving institutional innovation.
Emirates NBD, First Abu Dhabi Bank (FAB), and Abu Dhabi Islamic Bank (ADIB) have actively invested in next-generation platforms and API ecosystems. New ventures like Wio Bank, launched with backing from ADQ, Alpha Dhabi, e& (Etisalat) and FAB, signal a strategic shift toward purpose-built digital banking infrastructure while fintechs are filling specific market gaps.
Ruya, a fully digital Islamic community bank, typifies this emerging model. Ruya offers UAE Pass integration, which enables full digital onboarding in under five minutes, and mobile-first banking, with no hidden fees or minimum balance and access to digital assets.
Christoph Koster, CEO, ruya
CEO Christoph Koster, says: “We’re the world’s first Islamic bank to offer direct access to cryptocurrencies like Bitcoin and Ethereum in collaboration with our fintech partner Fuze [a cloud communications and collaboration software platform] and are working on introducing digital gold, stocks, and ETFs as well as other asset classes, all available within the ruya app.”
Koster sees fintechs like ruya as collaborators rather than adversaries of traditional banks.
“Fintechs bring agility and niche focus; ruya brings regulatory credibility, customer trust, and ethical oversight. Together, we can innovate faster, with trust,” he says.
Faced with mounting competition, traditional institutions are adapting, albeit unevenly. Some have launched digital subsidiaries while others have taken equity stakes in fintechs or entered strategic partnerships.
Emirates NBD, for example, has partnered with BNPL provider Tabby’as the issuing bank for its card. Mashreq, another Dubai-based lender, has embraced a banking-as-a-service (BaaS) model, offering core infrastructure to emerging fintechs. FAB and ADIB continue to scale their in-house digital capabilities and innovation labs.
In Saudi Arabia, some lenders have launched their own BaaS models while others collaborate with fintech firms. In April 2025, Al Rajhi Bank announced a strategic partnership with Muhide, a Saudi fintech platform, to digitally authenticate and govern SMEs’ finance transactions.
“Banks in the GCC have primarily focused on digital transformation, making heavy investments in mobile channels, technology delivery hubs, and the transformation of branches,” notes Sheinal Jayantilal, partner and leader of McKinsey’s Retail Banking and Fintech Practice in EEMEA. “Some banks have even rationalized their branch networks to lower servicing costs, which has been a significant step in staying relevant and meeting customer demands.”
But the pace of change varies significantly. Compliance-heavy operations, siloed decision-making, and cultural resistance often hold back legacy players
“Fintech competition is now a tangible reality for banks in the GCC. What was once theoretical is now a boardroom concern,” says Mustafa Domanic, a partner in Oliver Wyman’s Dubai office. “Banks shouldn’t fear the migration of customers; it’s already happening. The winners will be those who participate in the transformation, not resist it.”
Regulatory Catalyst
Much of the momentum in fintech across the GCC is being fuelled by forward-thinking regulators. The UAE’s ADGM and DIFC have launched regulatory sandboxes, fast-track licensing schemes, and frameworks for digital assets and open banking.
The UAE stands out as a progressive regulatory environment in the GCC, says Mohamed Fairooz, Middle East lead at Standard Chartered’s SC Ventures. “We see the regulator here proactively embracing fintech, digital assets and innovation sandboxes.”
Saudi Arabia, too, is catching up. Under Vision 2030, the kingdom aims to host 525 fintechs by the end of the decade. The Saudi Central Bank and the Capital Market Authority have introduced sandboxes and digital finance strategies to attract innovation.
Other jurisdictions, like Bahrain, are introducing emerging technologies in a bid to attract tech firms and investors.
“Bahrain has emerged as a regulatory test-bed thanks to the Central Bank of Bahrain’s early embrace of sandboxes and open banking,” notes Grinstead. “It has attracted digital banking and compliance technology innovators, although market size presents scalability limits without cross-border expansion.”
Indeed, cross-border scalability remains a pain point. Fragmented regulation, duplicative licensing, and differing compliance requirements across jurisdictions hinder regional expansion.
Staying Competitive
As Gulf fintechs mature, some will acquire full banking licences while incumbent banks and brokers will increasingly seek to embed fintech capabilities to stay competitive.
McKinsey forecasts that MENA will be the fastest-growing region globally, with 35% annual growth in fintech net revenue until 2028, compared with a global average of 15%. A large proportion of this growth will be driven by the GCC’s banking sector.
Sectors like embedded finance, AI-driven personal finance, and wealthtech are driving the next wave of growth. M&A will also accelerate as banks acquire fintechs to fast-track innovation, according to a report by Lucidity Insights.
For traditional banks and brokers, survival will require more than digitizing legacy systems; it will demand a rethinking of the entire value chain. Pricing models, onboarding, product offerings, and ethical frameworks will all need reinvention.
“To remain competitive,” Domanic argues, “banks must closely monitor developments in the fintech sector and understand how emerging business models may impact their core operations.”
Poland is increasingly seen as the gateway between eastern and western Europe.
Post-war Poland has enjoyed proper independence now for little more than 35 years. And it wants to keep it that way. But there are external pressures which Poles believe put them under very real threat.
Global Finance (GF): What are NMB Bank’s recent milestones in driving digital transformation?
Kwame Makundi (KM): In 2024, NMB Bank showed its commitment to technological advancement by launching over 20 initiatives that support growth and improve its offering in terms of customer experience, financial inclusion and operational efficiency. The NMB Pesa Account is a good example. This digital and cardless account-opening solution was designed for low-income households to advance financial inclusion in rural areas. Requiring a small initial deposit, the bank onboarded over 354,000 accounts in 2024.
Another successful initiative was Mshiko Fasta, a digital micro-loan product that reduced turnaround time from around five days to under 10 minutes for non-collateralised loans. These cater mainly to small- and medium-sized businesses and entrepreneurs and are accessible from mobile devices.
NMB Kikundi is an affordable and accessible digital solution enabling customers to open group accounts instantly via their phones through NMB Mkononi and USSD services with no debit restrictions and zero transfer charges. Last year, 40,000 group accounts were onboarded.
We also created FlexMalipo, a tailored payment and bill management solution for schools and religious institutions. By helping to control payment cycles, reconciliation and real-time transaction visibility – at no cost – we onboarded more than 830 schools.
GF: How has this journey of innovation enhanced NMB Bank’s performance?
KM: Our digital transformation efforts have led to significant efficiency gains. For example, in 2024 branch transactions decreased by 10%, and we improved our cost-to-income ratio by 100 basis points, from 39% the year before. More specifically, our strategic investment in loan management and enhanced IFRS 9 systems led to a reduction in our loan loss ratio to 0.97% and non-performing loan ratio to 2.9% by the end of 2024.
GF: What are the key features of the NMB Mkononi app that also differentiate the bank?
KM: This app is distinctive from all other mobile banking apps in several ways. Firstly, it offers a personalised user interface and overall improved customer experience that allows for smooth navigation through a wide range of functions. Secondly, the app provides access to apply for and manage unsecured digital micro loans, including Mshiko Fasta and Salary Advance. The app also has enhanced security features, such as strengthened biometric authentication, for a safer experience. Lastly, the app offers several value-added services, from local and international fund transfers, to savings solutions, to paying bills and making withdrawals.
GF: What inspired NMB to develop digital loans for the local market?
KM: In response to evolving customer needs, we leveraged NMB Bank’s innovation strategy to offer instant, collateral-free credit solutions that are easily accessible anytime, anywhere. In addition to reducing turnaround times, eliminating paperwork and improving customer satisfaction, we can tailor loan amounts based on real-time data, which ensures customers receive credit that matches their financial capacity, therefore fostering trust and repeat usage.
GF: How has this digital lending proposition impacted Tanzania’s banking landscape?
KM: Through our digital loans, credit decisions are made by using multiple data sources, allowing underserved individuals to access formal credit for the first time. For customers, this has expanded access to formal financial services, reducing the reliance on informal lenders while supporting broader financial inclusion across Tanzania. Since NMB Bank launched the solution in 2022, we have disbursed over three million loans to one million previously underserved customers nationwide – from entrepreneurs and women, to food vendors and motorbike and taxi drivers.
GF: What’s next on your digital banking agenda?
KM: NMB Bank is exploring emerging technologies to maintain our competitive edge in an increasingly digitised market. Current initiatives include the strategic modernisation of our core banking system. This aims to spur business growth, enhance operational efficiency, foster innovation and strengthen IT risk management. We want to bring new products to markets faster.
We are also investing in AI and machine learning capabilities to drive faster and more informed decision-making, as well as greater personalisation and real-time analytics. Talent development is also a strategic goal, making the right hires in key IT and digital roles aligned with our long-term transformation agenda.
With these and other initiatives, NMB is addressing evolving customer needs by leveraging digital channels to deliver convenience, efficiency, enhanced customer satisfaction and greater financial inclusion.
Why it’s a good buy: You’ll experience lifelike sound, and with two hidden microphones equipped with AI-enhanced noise rejection technology, your friends will hear you loud and clear.
Specs:Compatible with: PlayStation 5 consoles, PlayStation Portal remote player, PC/Mac; Connectivity: PlayStation Wireless/Bluetooth
Best PS5 game deal
Marvel’s Spider-Man: Miles Morales, £22.97 (was £44.97)
You’ll bag a popular game that delivers an action-packed adventureCredit: Currys
Marvel’s Spider-Man: Miles Morales, £22.97 (was £44.97) from Currys
The game currently costs just £22.97 when purchased from Currys.
Why it’s a good buy: For that price, you’ll bag a popular game that delivers an action-packed adventure, great visuals, and a gripping storyline.
Specs:Rated: 16+; Release date: 2020
PS5 game deals
Astro Bot, £48.95 (was £59.99)
You can explore planets, volcanoes, undersea cities, and moreCredit: Amazon
Astro Bot, £48.95 (was £59.99) from Amazon
What’s the deal? Looking to bag the award-winning Astro Bot game? We’ve found an Amazon offer you won’t want to miss.
Now discounted to £48.95, Astro Bot takes gamers on a galactic quest in search of ASTRO’s lost crew.
Why it’s a good buy: If you’re shopping for a title that offers high-quality gameplay, you’ll want to take a closer look at Astro Bot.
You’ll explore planets, volcanoes, undersea cities, and more in this playful space adventure that’s packed with creative levels.
Specs:Rated: 7+; Release date: September 2024
TopSpin 2K25, £6 (was £55.99)
Go toe-to-toe with the biggest names in tennisCredit: GAME
TopSpin 2K25, £6 (was £55.99) from GAME
What’s the deal? We’ve spotted a fantastic discount at GAME.
If you want to go toe-to-toe with the biggest names in tennis, TopSpin 2K25 should be on your list, and it’s now available for just £6.
Why it’s a good buy: TopSpin 2K25 is a solid choice for tennis fans thanks to its in-depth career mode, realistic gameplay, and selection of pro players.
There are over 24 playable pros to choose from, and you can even customise your look on the court.
Specs:Rated: 3+; Release date: April 2024
More PS5 game deals:
Disney Dreamlight Valley: Cozy Edition, £34 (was £44.99) from GAME – buy here
PJ Masks Power Heroes: Mighty Alliance, £11 (was £34.99) from GAME – buy here
Globalization is generally understood as a characteristic feature of the contemporary world, and there is no unified definition of this phenomenon that can be given. What it basically comes down to is that globalization is a complex of processes that have successfully rearranged economic, political, and social ties across the borders, creating high-density interregional and intercontinental webs. Although the importance of globalization to enhance technological advancement, economic integration, and cultural exchange is commonly hailed, it has also put states at new and advanced vulnerabilities, especially in the cyberspace sector. In spite of the claims that it is an ineluctable side product of human innovation, the rate of globalization has advanced considerably due to improved digital communication and transportation technology. Other researchers advance the idea that its origin can be traced to ancient migration and trade networks, and the interconnectedness is the property of human evolution. The digital age has, however, increased this connectivity to the extent that it is no longer what it was. The advent of the internet and instant communication has transformed relations and life in the world, raising the living standards of the developed countries and also bringing in developed forms of threats. Among these, the most urgent is the so-called cyber warfare one, as a brand-new area that breaks the inner paradigms of national security and national sovereignty.
In the modern world characterized by hyperconnectivity, the global digital networks have the capacity to enable the state and non-state actors to dictate cyber operations that are cross-border with far-reaching consequences. The chain of modern society, including the financial system, healthcare, energy, and military communication systems, is both a strength and a weak point to take advantage of. An attack on a single node may spread horizontally across systems and into borders of different countries, endangering social equilibrium. This necessitates the need to comprehend the motives, what they can do, and the strategies they are likely to use, and to develop adaptive national security models that can adapt to this changing environment. Technology is the powerful aspect that can present change in almost all spheres of life. The spread of the use of smartphones, the construction of smart cities, and the implementation of blockchain systems indicate the high rate of transformation of personal life and institutional life, as well as their digitalization. This digital transformation, however, also came with an abundance of cyber risks. Not only is the new threat environment vigilant, but it is advanced enough to require precedent defense. Such qualities of cyberspace as anonymity, easy accessibility, legal confusion, and unequal distribution of power make the latter a beneficial environment for conflicts, spying, and interference by an extended number of opponents.
The changes of cyber threats have been gradual yet far-reaching. The history of cybersecurity could be established back in the early 1970s when the Creeper and its antivirus Reaper became the first self-replicating and antivirus applications, respectively. Commercial Antivirus software was introduced in the 1980s, the same decade that the 90s witnessed a boom of online crime since more people got access to the internet worldwide. Cybercrime was being organized and more technologically advanced in the early 2000s, with state-sponsored cyber manipulation starting to take shape. By 2026, the worldwide cybersecurity market is expected to exceed 345 billion, which can be seen as a way of demonstrating the magnitude of the problem and the necessity to take measures in preventing it. Cyber capabilities are being more and more incorporated as part of the greater strategic arsenals of states. Hybrid warfare, the idea of a combination of conventional military methods and digital warfare, has turned out to be one of the central concepts of modern combat. Of particular interest is the use, in 2010, of the Stuxnet malware, apparently by the United States and Israel, to destroy nuclear centrifuges in Iran. These cyber operations have the potential to create strategic disruption to adversaries at no political or humanitarian cost of direct warfare, and they can be covered behind the plausible deniability of it. This is because the Russian-Ukraine conflict presents one of the most vivid examples of the practicality of cyber warfare. Beginning in 2013, Russia has carried out a series of cyberattacks on Ukrainian infrastructure that grew in intensity in the run-up to its full-scale invasion in 2022. The malware was used to carry out operations like attacks using destructive malware referred to as the Acid Rain, which interfered with satellite communications and even the monitoring of wind turbines, as well as the internet being cut off through parts of Europe and even North Africa. Such cyberattacks were not isolated maneuvers but rather a part of Russia’s broad hybrid warfare policy. They wanted to disrupt Ukrainian rule, create disinformation, disorient people, and tear the society apart without the specificity of any military attack.
The non-state actors have also become substantial sources of cyber menace. The organizations and groups that operate in the cyberspace now include the hacktivist groups and criminal syndicates, terrorist organizations and inclusion of corporate groups as well. They have different motives. Their motives could be as varied as financial gain, ideological expression, or strategic disruption, but their capability to cause harm is real. In 2007, there were Estonian cyberattacks, largely blamed on Russian patriotic hackers, that led to the paralysis of banking systems, ministerial websites, and media houses. The incident was not scientifically connected to the Russian state, but it revealed the nature of destruction of non-state actors. At least, these groups are involved in cyber espionage and/or sabotage with or without official state sponsorship to make it more difficult to attribute culpability and strike back. The consequences upon national security are enormous and extremely troubling. Hacking is capable of bringing the most vital services to their knees, stealing classified information, and undermining democratic efforts in the minds of a citizenry. A case in point is the Ghostnet which was found out in 2009 and had penetrated networks in over 100 countries expressly posing a challenge of digital sovereignty and spying. In a similar vein, in 2016 Russia was charged with influencing the US presidential election race via cyber incursion, disinformation, and explorations of electoral infrastructure, which was a move designed to discredit democracy as well as geopolitical stability. With cyber warfare still being in development, the boundary between the peaceful and aggressive becomes more grey. Digital battlefield involves situations where attacks cannot be tracked and consequently acknowledged, where it is difficult to ascribe such an attack, and where effects, though sometimes silent, are vast. The necessity of taking good care of cybersecurity is pressing and hard to exaggerate. In order to combat such threats, the states have to invest in integrated cybersecurity systems. Not just firewalls, intrusion and detection systems, and encrypting data, but more sophisticated threat intelligence using the technology of artificial intelligence and machine learning. The critical systems have to be secured through proactive monitoring, protocols of quick responses and regular vulnerability checks.
Nevertheless, system-based countermeasures are not enough. It is also crucial to have a subtle perception of how humans conduct themselves online. Behavioral science insights have to be involved in cybersecurity strategies in order to predict, prevent, and respond to internal and external threats more effectively. The high security levels of cyber resilience can be achieved through awareness campaigns, psychological profiling of threat actors, and an education program for both users and professionals. The other pillar of success in cybersecurity is international cooperation. No nation can take on these threats independently because of the nature of the internet, which is borderless. International rules and conventions, codes of ethics, and laws have to be developed to govern cyberspace behavior and punish the violators. Moreover, the worldwide issue of cybersecurity talent shortage will require making large investments both in learning and educating the current generation of cybersecurity experts and investing in innovative approaches like gamified learning, virtual labs, and outreach strategies to appeal to people of different backgrounds and interests to the industry. Globalization has finally facilitated and strengthened the emergence of cyber threats. Though interconnectedness may be one of the most effective drivers of economic and social development, it also ensures the spawning of fresh opportunities through which dangerous outcomes may be realized should it be left unchecked, acting devastatingly to malicious parties. It is not cybersecurity and only a technical need; it is a national need that is necessary to protect sovereignty, stability, and the democratic order in the twenty-first century.
What the US government dubbed as the “Crypto Week” yielded in the House passing the first federal legislation to regulate stablecoins. As it has been previously approved by the Senate, it comes into effect the moment the president signs it.
Two additional crypto-related bills also passed in the House and will now proceed to the Senate.
This is a major win for the crypto industry, which poured millions into last year’s election, supporting candidates, including Donald Trump, who became a major advocate for cryptocurrency investments.
The House had three crypto-related bills to pass this “Crypto Week”. However, the bills were stalled for more than a day due to disagreements among House Republicans over how to combine the legislation.
Ultimately, GOP leaders put the three bills up for separate votes. One of the three bills, legislation to regulate a type of cryptocurrency called stablecoins, had already passed the Senate with broad bipartisan support and will now head to Trump’s desk.
The other two bills — a broader measure to create a new market structure for cryptocurrency and a bill to prohibit the Federal Reserve from issuing a new digital currency — will be considered by the Senate later.
How stablecoin is being regulated in the US
The stablecoin bill, called the “Genius Act”, sets initial guardrails and consumer protections for the cryptocurrency, with reserve requirements, audits, and compliance.
Stablecoins are digital tokens tied to a stable asset, often the US dollar, to reduce price volatility.
“Around the world, payment systems are undergoing a revolution,” said House Financial Services Chair French Hill of Arkansas as lawmakers debated the stablecoin legislation Thursday morning. Hill said the bill will “ensure American competitiveness and strong guardrails for our consumers.”
The stablecoin measure is seen by lawmakers and the industry as a step toward adding legitimacy and consumer trust to a rapidly growing sector. US Treasury Secretary Scott Bessent said in June that the legislation could help that currency “grow into a $3.7 trillion (€3.2tr) market by the end of the decade.”
The bill outlines requirements for stablecoin issuers, including compliance with US anti-money laundering and sanctions laws, and mandates that issuers hold reserves backing the cryptocurrency.
Without such a framework, Republicans on the Senate Banking Committee warned in a statement, “consumers face risks like unstable reserves or unclear operations from stablecoin issuers.”
After the votes, House Republicans strongly urged the Senate to take up the second bill, which would create a new market structure for cryptocurrency.
That legislation aims to provide clarity for how digital assets are regulated. The bill defines what forms of cryptocurrency should be treated as commodities regulated by the Commodity Futures Trading Commission and which are securities policed by the Securities and Exchange Commission. In general, tokens associated with “mature” blockchains, like Bitcoin, will be considered commodities.
The third bill, passed in the House on a narrower 219-210 margin, prohibits the US from offering what is known as a “central bank digital currency,” which is a government-issued form of digital cash.
Why the US needs crypto regulation
The crypto industry has long complained that unclear laws have made it difficult to operate in the US and that the Biden administration attempted to regulate it through enforcement actions rather than transparent rulemaking.
Passing this bill has been a top priority for the industry, which has quickly become a major player in Washington, thanks to substantial campaign donations and lobbying efforts.
Patrick McHenry, the former chair of the House Financial Services Committee and now vice chair of the crypto firm Ondo Finance, said the legislation will have a “massive generational impact,” similar to the securities laws Congress passed in the 1930s that helped make Wall Street the centre of the financial world.
“These bills will make the United States the centre of the world for digital assets,” he said.
While the bill has significant bipartisan support, it has also faced pushback from Democrats who argue that the legislation should address Trump’s personal financial interests in the cryptocurrency space.
A provision in the stablecoin bill bans members of Congress and their families from profiting off stablecoins. But that prohibition does not extend to the president and his family.
According to Forbes, the president’s crypto holdings are worth more than any single real estate asset in his portfolio, an estimated $1 billion (€860 million).
The Republican president’s family holds a significant stake in World Liberty Financial, a crypto project that launched its own stablecoin, USD1.
Trump reported earning $57.35 million (€49.2 million) from token sales at World Liberty Financial in 2024, according to a public financial disclosure released in June.
Some Democrats also criticised the bill for creating what they see as an overly weak regulatory framework that could pose long-term financial risks. They have also raised concerns that the legislation opens the door for major corporations to issue their own private cryptocurrencies.
“If this bill passes, it will allow Elon Musk and Mark Zuckerberg to issue their own money. The bill still permits Big Tech companies and other conglomerates to issue their own private currencies,” said Massachusetts Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee.
