U.S. President Donald Trump has recently provided a boost to digital currencies. On July 18, he signed the "GENIUS Act" (Guiding and Establishing National Innovation for U.S. Stablecoins). This is the first major federal law regulating the digital currency market in the U.S.

One of the most significant aspects of the law is the regulation of stablecoins: it creates a first-of-its-kind regulatory framework for cryptocurrencies pegged to the value of another asset, such as the U.S. dollar.

The law requires stablecoin issuers to maintain full (100%) backing in liquid assets, such as U.S. dollars or short-term government bonds. It also requires issuers to publish monthly reports detailing the composition of the backing.

It should be noted that the world of digital currencies, and stablecoins in particular, is still imperfect. For example, it is not always clear whether all stablecoins are fully backed. There is also regulatory risk, as governments and central banks may view stablecoins as a threat to the official monetary system and impose restrictions. Additionally, issuance is concentrated in private companies rather than decentralized networks. The fear is that if a major stablecoin loses trust or decouples from its pegged asset, it could destabilize the entire crypto market. The collapse of the Terra stablecoin in 2022, which caused many investors to lose their holdings, remains a cautionary example.

A notable success story in the space is Tether, whose demand has surged over the past year due to a combination of commercial usage and large inflows of new USDT.

"By the end of the year there will be a stablecoin launched in Israel"

The realization that federal regulation is underway has contributed to significant global growth in stablecoin users, rising from 20 million in 2024 to approximately 30 million in 2025.

In Israel, activity in the field is beginning to emerge. The most active company is Bits of Gold. CEO Yuval Roash explains: "About two years ago, we approached the Capital Market Authority to announce our intention to issue a stablecoin. Like any currency, for every shekel issued, we will issue one BILS token, our chosen name. The currency is currently in an advanced pilot phase. I estimate that by the end of the year, a stablecoin will be officially launched in Israel."

Roash adds, "It can be used to convert Bitcoin into BILS and from there to shekels. This allows Israelis to maintain a position in shekels in their wallets while retaining the benefits of blockchain and Bitcoin ownership."