The bill, dubbed the GENIUS Act, passed in the House of Representatives by a vote of 308 to 122, with support from nearly half the Democratic members and most Republicans. It had earlier been approved by the Senate.

The new law requires stablecoins to be backed by liquid assets - such as US dollars and short-term Treasury bills - and for issuers to disclose publicly the composition of their reserves monthly.

President Trump earlier vowed to turn the US into the world's cryptocurrency capital.

The stablecoin market, which crypto data provider CoinGecko said is valued at more than 260 billion USD, could grow to 2 trillion USD by 2028 under the new law, Standard Chartered bank estimated earlier this year.