Former U.S. President Donald Trump signed a new law on Friday establishing a regulatory framework specifically targeting stablecoins, a category of cryptocurrencies. This legislation is viewed by experts as a significant step toward formalizing and legitimizing the burgeoning digital asset sector.

Trump hailed the bill as a “major endorsement” of digital currencies, stressing their positive impact on both the U.S. dollar and the broader American economy.

In his remarks, Trump noted that the value of digital currencies has surged beyond the gains seen in traditional stock markets. However, he firmly rejected any plans for the Federal Reserve to issue a central bank digital currency (CBDC).

“I will not allow the dollar’s value to decline,” Trump asserted. “Losing the dollar’s reserve currency status would be like losing a war.”

The newly enacted law aims to bring greater clarity and oversight to stablecoin issuers while facilitating their integration into the mainstream financial system.