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What is behind the UK’s summer of discontent and riots?

Special What is behind the UK’s summer of discontent and riots?
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Rioters have looted shops, torched cars, targeted mosques, and even set fire to hotels housing asylum seekers. (Getty Images)
Special What is behind the UK’s summer of discontent and riots?
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​ Rioters have looted shops, torched cars, targeted mosques, and even set fire to hotels housing asylum seekers. (Getty Images) ​
Special What is behind the UK’s summer of discontent and riots?
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A police dog bites a protester in Bristol, England, on August 3, 2024 during the 'Enough is Enough' demonstration held in reaction to the fatal stabbings in Southport on July 29. (AFP)
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Updated 08 August 2024

What is behind the UK’s summer of discontent and riots?

What is behind the UK’s summer of discontent and riots?
  • A mass stabbing in Stockport sparked nationwide disorder, fuelled by the far-right and white working class grievance
  • Social media, thuggery, and uncontrolled immigration have all been tapped as potential triggers for the violence

LONDON: Riots have gripped England and Northern Ireland over the past week amid a cloud of misinformation and perceived government failings. Commentators are divided, however, over the root causes beyond assertions of “far-right thuggery.”

Not since 2011, when the police shooting of a black man sparked days of nationwide riots, has the UK witnessed scenes of such violence, with crowds of people tearing through shops, torching cars, targeting mosques, and even setting fire to hotels hosting asylum seekers.

Everyone from Prime Minister Sir Keir Starmer to the world’s second richest man, Elon Musk — who likened the scenes unfolding in the UK to a civil war — has weighed in on what caused the riots and what they might mean for the country.




Britain's Prime Minister Keir Starmer delivers a speech during a press conference following clashes after the Southport stabbing, at 10 Downing street in central London on August 1, 2024. (AFP)

Responding to the attempted arson on Sunday of a Holiday Inn Express in Rotherham, South Yorkshire, where asylum seekers were being housed pending a decision on their status, Starmer said the rioters would face the “full force of the law.”

“I guarantee you’ll regret taking part in this disorder, whether directly or those whipping up this action online and then running away themselves,” he said at a press briefing. “This is not a protest, it is organized, violent thuggery and it has no place on our streets or online.”

Such has been the severity of the damage caused to communities and the number of injuries to police officers that the director of public prosecutions, Stephen Parkinson, has said some of those arrested could face charges of terrorism.




Riot police face far-right protesters in Bristol, England, on August 3, 2024 during the 'Enough is Enough' demonstration held in reaction to the fatal stabbings in Southport on July 29. (AFP)

Speaking to the BBC, Parkinson said: “Where you have organized groups planning activity for the purposes of advancing an ideology and planning really, really serious disruption, then yes, we will consider terrorism offenses.

“Yes, we are willing to look at terrorism offenses, and I am aware of at least one instance where that is happening.”




Rioters have looted shops, torched cars, targeted mosques, and even set fire to hotels housing asylum seekers. (Getty Images)

Sources who spoke to Arab News did not disagree with assertions that the violence was anything more than “violent thuggery.” However, they warned against dismissing the need to examine underlying societal issues.

One source, who works in education and asked not to be identified, said the disorder has come on the back of an election campaign that tapped into legitimate concerns by seeking to blame the country’s ills on the purported negative effects of mass immigration.

“Mix this with misinformation surrounding the identity of the murderer of girls which served as the riots’ catalyst, and what you are seeing is chickens coming home to roost,” the source said.

Opinion

This section contains relevant reference points, placed in (Opinion field)

An attack on a children’s dance and yoga workshop at a community center in Southport, north of Liverpool, on July 29, saw three girls killed and 10 other people — eight of whom are children — injured, allegedly by a 17-year-old.

Because of the suspect’s age, police were legally obliged to withhold his identity, inadvertently creating a vacuum that was quickly filled by false information circulated on social media that claimed the suspect was a Muslim who had arrived in the country illegally.

The spread of false information was not helped by the chiming in of online influencers who themselves regularly post anti-immigration, anti-Muslim sentiment to boost a political agenda.




Police officers detain a person for shouting racist comments during a counter-demonstration against an anti-immigration protest called by far-right activists, near the United Immigration Services offices at The Beacon in Newcastle-upon-Tyne, nEngland on Aug. 7, 2024. (AFP)

Zouhir Al-Shimale, head of research at Valent Projects, a UK-based firm that uses artificial intelligence to combat disinformation, said identifying the root causes of the riots may prove difficult, as there has been a blend of deliberate manipulation by those pushing an anti-immigrant agenda and widespread bot activity.

“Since Aug. 3, accounts and networks linked to Reform UK have been massively active on X and Facebook with claims of two-tier policing,” Al-Shimale told Arab News, referring to a right-wing political party that made gains in the recent general election.




Protesters hold placards during a 'Enough is Enough' demonstration called by far-right activists near a hotel housing asylum seekers in Aldershot on August 4, 2024. (AFP)

“They are pouring a lot of resources into this to test certain lines and narratives and see what sticks, but essentially suggesting that the police are allowing Muslim thugs to run riot while they target ‘white patriots’ who are simply angry about the ‘state of their nation.’”

Suggestions of two-tier policing have focused on purported “soft handling” by police over “left-wing, pro-Palestine” marches that have occurred weekly in London since Oct. 7, and earlier Black Lives Matter rallies.




Counter-protesters gather in Bristol, southern England, on August 3, 2024 against the 'Enough is Enough' demonstration held in reaction to the fatal stabbings in Southport on July 29. (AFP)

Based on the scale of disorder alone, the comparison is a poor one. A recent pro-Palestine march of up to 10,000 people led to three police officers being injured. By contrast, the roughly 750 people who rioted in Rotherham on Sunday left at least 12 officers injured.

Opposition to the riots is near-universal across every section of the public, according to poll data from YouGov, with Reform UK voters being the only group showing any substantive levels of support, at 21 percent.

Even this is a clear minority, with three-quarters of Reform voters (76 percent) opposed to the riots. Support among other voters is far lower — only 9 percent of Conservatives, 3 percent of Labour voters and 1 percent of Liberal Democrats favor the disorder.

INNUMBERS

• 400 People arrested after six days of riots in parts of England and Northern Ireland.

• 6,000 Police officers mobilized nationwide to deal with further expected unrest.

Nevertheless, there are sympathies with the ideas that are fueling the riots and the far-right groups, like the English Defence League, which are thought to be orchestrating the violence.

Indeed, legal immigration to the UK has risen dramatically over the past 30 years, while illegal arrivals across the English Channel have continued despite the previous government’s pledge to “stop the boats.”

The latest estimates on migration from the Office for National Statistics suggest that in 2023, some 1.2 million people migrated into the UK while 532,000 people emigrated, leaving a net migration figure of 685,000.




Leader of Reform UK Nigel Farage stands in front of a van reading "Keir Starmer won't stop the boats" in reference to migrant crossings across the Channel during a campaign event in Blackpool, northwestern England, on June 20, 2024, in the build-up to the UK general election on July 4. (AFP/File)

Around 29,000 people were detected crossing the English Channel in small boats in 2023, down from 46,000 in 2022, although the overall number of small boat arrivals has increased substantially since 2018.

According to the University of Oxford’s Migration Observatory, the share of workers employed in the UK who were born abroad has steadily increased over the past two decades, rising from 9 percent of the employed workforce in the first quarter of 2004 (2.6 million) to 21 percent in the first quarter of 2024 (6.8 million).

It found that migrant men were more likely to be employed than UK-born men, but among women, migrants were less likely to be in employment.




A person holds a placard reading 'Stop Farage and his Nazi's' during a counter demonstration against an anti-immigration protest called by far-right activists, in Newcastle-upon-Tyne, north-east England on August 7, 2024. (AFP)

Although asylum seekers are not allowed to work, nor do they receive a house or substantial welfare payments while their applications are reviewed, a section of the public in the UK fears the needs of new arrivals are being placed ahead of their own, while the racial composition of their communities changes around them.

Despite this, voter behavior in the UK’s recent general election suggests immigration is not a priority issue for most. “A much better (though still imperfect) indicator is a national election,” Noah Carl, a sociologist and right-wing commentator, wrote in a recent piece for Aporia Magazine.

“Britain held one just a few weeks ago, and the results provide little basis for saying ‘the English’ have ‘had enough’ of mass immigration. Fifty-six percent of white people voted for left-wing or progressive parties, and another 26 percent voted for the Conservatives (a de-facto pro-migration party). Only 16 percent supported Reform.

“In fact, the share of white people supporting left-wing or progressive parties increased from 2019. I say this as someone with broadly restrictionist views.




Members of the local community help to clear debris from the streets in Middlesbrough, England on August 5, 2024, following rioting and looting the day before. (AFP)

“Now, you might claim the situation has changed since the election, owing to the rioting in Leeds, the stabbing in Southport and other incidents. But it hasn’t really changed.

“Before the most recent election, white British people had already been subjected to Islamist terrorism, grooming gangs, BLM riots, the ‘decolonization’ movement, accusations of ‘white privilege,’ etc. Yet they still chose to vote overwhelmingly for pro-migration parties.

“Although polling suggests most Britons do want immigration reduced, they apparently care more about issues like the cost of living, housing and the NHS.”

Many commentators have therefore placed much of the blame on social media platforms for acting as an accelerant for the violence, while rioters whipped up by misinformation seek to emulate the disorder seen elsewhere in the country and fed to their smartphones.

Some of the blame, however, may also rest with the pervading political discourse in the UK today.




People hold a banner reading "Refugees welcome" during a counter demonstration against an anti-immigration protest called by far-right activists in Birmingham, England, on August 7, 2024. (AFP)

Paul Reilly, senior lecturer in communications, media and democracy at the University of Glasgow, said one underlying cause may be the absence of accountability for social media platforms in allowing misinformation to spread. But he also pointed to another group.

“I would argue political commentators, influencers and politicians have played a key role in this by creating toxic political discourse around migration,” Reilly told Arab News.

“Social media platforms could do better on removing hate speech and misinformation. But they aren’t treated as publishers and held accountable for content they host. I would expect debate over temporary shutdowns of online platforms during civil unrest as a viable policy.”




A sign is tied onto a street pole ahead of an anti-immigration protest called by far-right activists in Westcliff, eastern England, on August 7, 2024. (AFP)

Nonetheless, Reilly has also challenged the assertion of Southport MP Patrick Hurley that the violence playing out was solely down to “lies and propaganda” spread on social media.

Instead, citing his research into social media’s role in political unrest in Northern Ireland, he says that while online platforms have been used to share rumors and misinformation, that have inflamed tensions, such online activity has tended to “follow rather than precede riots.”

Writing in The Conversation, he said: “If political leaders are serious about avoiding further violence, they should start by moderating their own language.”

However, he added: “It is expedient for politicians to blame online platforms rather than acknowledge their role in producing a toxic political discourse in relation to asylum seekers and immigration.”




People hold pro-refugee, anti-racist placards as they attend a counter demonstration against an anti-immigration protest called by far-right activists in Newcastle-upon-Tyne, England on August 7, 2024. (AFP)

One legal researcher, who asked not to be named, told Arab News the riots were a symptom of failures to address widening wealth inequalities, which had created a space for misinformation to spread.

“It is simply a replication of what we have seen time and time again with the cutting of public services. Amid an absence of government accountability, the population will look for someone to blame,” the person said.

“If there’s one bright spark, those coming out to clean up after the rioters seem to represent a far higher portion of the affected communities, indicating that for a government who cares, there is still buy-in for a better tomorrow.”

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Trump sues Murdoch, WSJ over Epstein sex bombshell

Trump sues Murdoch, WSJ over Epstein sex bombshell
Updated 28 sec ago

Trump sues Murdoch, WSJ over Epstein sex bombshell

Trump sues Murdoch, WSJ over Epstein sex bombshell
  • Trump lashed at WSJ as a ‘useless ‘rag’ for publishing what he called a “false, malicious, defamatory, FAKE NEWS article”
  • Dow Jones, the Journal’s longtime publisher, responded to Trump’s libel suit Friday saying it is standing by the story

WASHINGTON: US President Donald Trump sued media magnate Rupert Murdoch and The Wall Street Journal for at least $10 billion Friday over publication of a bombshell article on his friendship with the infamous alleged sex trafficker of underage girls, Jeffrey Epstein.
The defamation lawsuit, filed in federal court in Miami, saw the 79-year-old Republican hitting back at a scandal threatening to cause serious political damage.
“We have just filed a POWERHOUSE Lawsuit against everyone involved in publishing the false, malicious, defamatory, FAKE NEWS ‘article’ in the useless ‘rag’ that is, The Wall Street Journal,” Trump posted on Truth Social late Friday.
The Journal reported Thursday that in 2003, the then-real estate magnate wrote a suggestive birthday letter to Epstein, illustrated with a naked woman and alluding to a shared “secret.”
The lawsuit, which also names two reporters, the Dow Jones corporation, and Murdoch’s parent company News Corp. as defendants, claims that no such letter exists and that the paper intended to malign Trump with a story that has now been viewed by hundreds of millions of people.
“And given the timing of the Defendants’ article, which shows their malicious intent behind it, the overwhelming financial and reputational harm suffered by President Trump will continue to multiply,” it said.
Dow Jones, the Journal’s longtime publisher, responded to Trump’s libel suit Friday saying it is standing by the story.
“We have full confidence in the rigor and accuracy of our reporting, and will vigorously defend against any lawsuit,” a Dow Jones spokesperson said in a statement.

In another bid to dampen outrage among his own supporters about an alleged government cover-up of Epstein’s activities and 2019 death, Trump ordered US Attorney General Pam Bondi to seek the unsealing of grand jury testimony from the prosecution against the disgraced financier.
In a filing in New York, Bondi cited “extensive public interest” for the unusual request to release what is typically secret testimony.
Epstein, a longtime friend of Trump and multiple high-profile men, was found hanging dead in a New York prison cell while awaiting trial on charges that he sexually exploited dozens of underage girls at his homes in New York and Florida.
The case sparked conspiracy theories, especially among Trump’s far-right voters, about an alleged international cabal of wealthy pedophiles. Epstein’s death — declared a suicide — before he could face trial supercharged the narrative.
When Trump returned to power for a second term this January, his supporters clamored for revelations about Epstein’s supposed list of clients. But Bondi issued an official memo this month declaring there was no such list.
The discontent in Trump’s “Make America Great Again” base poses a rare challenge to the Republican’s control of the political narrative in the United States.
It remained unclear whether a court would authorize the unsealing of the grand jury testimony.
But even if such material were made public, there is no assurance it would shed much, if any, light on the main questions raised in the conspiracy theories — particularly the existence and possible contents of an Epstein client list.
Asked Friday by reporters if he would pursue the broader release of information related to the case, Trump did not answer.

This undated trial evidence image obtained December 8, 2021, from the US District Court for the Southern District of New York shows British socialite Ghislaine Maxwell and US financier Jeffrey Epstein. (AFP)


Trump was close with Epstein for years, and the two were photographed and videoed together at parties, although there has never been evidence of wrongdoing.
The Wall Street Journal article published late Thursday was damaging because it indicated a shared interest in sex.
The Journal reported that Trump had wished Epstein a happy 50th birthday in 2003 with a “bawdy” letter, part of an album of messages from rich and well-known figures.
According to the Journal, the Trump letter contained the outline of a naked woman, apparently drawn with a marker, and had the future president’s signature “Donald” mimicking pubic hair. It ends, according to the newspaper, with “Happy Birthday — and may every day be another wonderful secret.”
Trump reacted in a series of furious social media posts, saying “it’s not my language. It’s not my words.”
“I never wrote a picture in my life. I don’t draw pictures of women,” he said.
US media has published multiple drawings done by Trump in the past, with several dating to the early 2000s when he used his celebrity status to donate sketches for charity.
 


Australia delivers Abrams tanks to Ukraine for war with Russia

Australia delivers Abrams tanks to Ukraine for war with Russia
Updated 19 July 2025

Australia delivers Abrams tanks to Ukraine for war with Russia

Australia delivers Abrams tanks to Ukraine for war with Russia
  • Ukraine has taken possession of most of the 49 tanks given by Australia, says defense minister
  • Australia is one of the largest non-NATO contributors to Ukraine as it defends itself from Russian aggression

SYDNEY: Australia’s government said on Saturday it had delivered M1A1 Abrams tanks to Ukraine as part of a A$245 million ($160 million) package to help the country defend itself against Russia in their ongoing war.
Australia, one of the largest non-NATO contributors to Ukraine, has been supplying aid, ammunition and defense equipment since Moscow invaded its neighbor in February 2022.
Ukraine has taken possession of most of the 49 tanks given by Australia, and the rest will be delivered in coming months, said Defense Minister Richard Marles.
“The M1A1 Abrams tanks will make a significant contribution to Ukraine’s ongoing fight against Russia’s illegal and immoral invasion,” Marles said in a statement.
The tanks formed part of the A$1.5 billion ($980 million) that Canberra has provided Ukraine in the conflict, the government said.
Australia has also banned exports of alumina and aluminum ores, including bauxite, to Russia, and has sanctioned about 1,000 Russian individuals and entities.
Australia’s center-left Labor government this year labelled Russia as the aggressor in the conflict and called for the war to be resolved on Kyiv’s terms.


Trump says he thinks 5 jets were shot down in India-Pakistan hostilities

Trump says he thinks 5 jets were shot down in India-Pakistan hostilities
Updated 19 July 2025

Trump says he thinks 5 jets were shot down in India-Pakistan hostilities

Trump says he thinks 5 jets were shot down in India-Pakistan hostilities
  • New Delhi blamed the attack on Pakistan, which denied responsibility while calling for a neutral investigation

WASHINGTON: US President Donald Trump said on Friday up to five jets were shot down during recent India-Pakistan hostilities that began after an April Islamist militant attack in India-administered Kashmir, with the situation calming after a ceasefire in May.
Trump, who made his remarks at a dinner with some Republican US lawmakers at the White House, did not specify which side’s jets he was referring to.
“In fact, planes were being shot out of the air. Five, five, four or five, but I think five jets were shot down actually,” Trump said while talking about the India-Pakistan hostilities, without elaborating or providing further detail. Pakistan claimed it downed five Indian planes in air-to-air combat. India’s highest-ranking general said in late May that India switched tactics after suffering losses in the air on the first day of hostilities and established an advantage before a ceasefire was announced three days later. India also claimed it downed “a few planes” of Pakistan. Islamabad denied suffering any losses of planes but acknowledged its air bases suffered hits.

HIGH LIGHTS

• Hostilities rose between India and Pakistan after April attack in Kashmir

• Ceasefire was announced on May 10 • Trump has repeatedly claimed credit for ceasefire, India has differed from his claims

Trump has repeatedly claimed credit for the ceasefire between India and Pakistan that he announced on social media on May 10 after Washington held talks with both sides. India has differed with Trump’s claims that it resulted from his intervention and his threats to sever trade talks.
India’s position has been that New Delhi and Islamabad must resolve their problems directly and with no outside involvement.
India is an increasingly important US partner in Washington’s effort to counter China’s influence in Asia, while Pakistan is a US ally.
The April attack in India-administered Kashmir killed 26 men and sparked heavy fighting between the nuclear-armed Asian neighbors in the latest escalation of a decades-old rivalry.
New Delhi blamed the attack on Pakistan, which denied responsibility while calling for a neutral investigation.
Washington condemned the attack but did not directly blame Islamabad.
On May 7, Indian jets bombed sites across the border that New Delhi described as “terrorist infrastructure,” setting off an exchange of attacks between the two countries by fighter jets, missiles, drones, and artillery that killed dozens until the ceasefire was reached. 

 


Brazil police raid home of Bolsonaro, accused of plotting coup

Brazil police raid home of Bolsonaro, accused of plotting coup
Updated 19 July 2025

Brazil police raid home of Bolsonaro, accused of plotting coup

Brazil police raid home of Bolsonaro, accused of plotting coup
  • The case against Bolsonaro carries echoes of Trump’s failed prosecution over the January 6, 2021 attacks by his supporters on the US Capitol to try and reverse his election loss to Joe Biden

BRASILIA: Brazilian police raided Jair Bolsonaro’s home Friday, as a judge imposed further restrictions on the far-right former leader while he stands trial on coup charges that have vexed US president and ally Donald Trump.
His son Eduardo Bolsonaro, a congressman who recently moved to the United States to lobby for his father, wrote on X that federal police carried out a “raid on my father’s home this morning.”
He lashed out at Supreme Court judge Alexandre de Moraes, a Bolsonaro adversary who on Friday ordered the ex-president to wear an electronic ankle bracelet, not leave his home at night, or use social media.
Moraes, one of the judges in Bolsonaro’s trial for allegedly seeking to nullify leftist President Luiz Inacio Lula da Silva’s 2022 election victory, said the measures were necessary given the “hostile acts” against Brazil by the accused and his son.
This came after Trump announced a 50 percent tariff on the South American powerhouse for what he said was a “witch hunt” against his ally Bolsonaro.
Moraes, said Eduardo Bolsonaro, “has long abandoned any semblance of impartiality and now operates as a political gangster in robes, using the Supreme Court as his personal weapon.”
The judge was “trying to criminalize President Trump and the US government. Powerless against them, he chose to take my father hostage,” he added in a letter he signed as a “Brazilian congressman in exile.”
US Secretary of State Marco Rubio announced Friday Washington was revoking a US visa for Moraes for his “political witch hunt against Jair Bolsonaro.”

Accusing him of creating a “persecution and censorship complex,” Rubio also announced visa restrictions on other judges who side with Moraes, as well as their immediate family members.
Bolsonaro, 70, described the Moraes order Friday as a “supreme humiliation” and said the prohibitions were “suffocating.”
It also prohibited him from approaching foreign embassies, and confined him to his home on weekdays between 7:00 p.m. and 6:00 am, and all day on weekends or public holidays.
“I never thought about leaving Brazil, I never thought about going to an embassy,” Bolsonaro insisted on emerging from the justice secretariat offices in Brasilia. He had been taken there after the raid, during which police seized cash.
His defense team in a statement expressed “surprise and indignation” at the new measures.
The former army captain denies he was involved in an attempt to wrest power back from Lula as part of an alleged coup plot that prosecutors say failed only for a lack of military backing.
After the plot fizzled, rioting supporters known as “Bolsonaristas” raided government buildings in early 2023 as they urged the military to oust Lula. Bolsonaro was abroad at the time.
The case against Bolsonaro carries echoes of Trump’s failed prosecution over the January 6, 2021 attacks by his supporters on the US Capitol to try and reverse his election loss to Joe Biden.
Both men have claimed to be victims of political persecution, and Trump has stepped in in defense of his ally, to the anger of Lula who has labeled the tariff threat “unacceptable blackmail.”
Washington also announced an investigation into “unfair trading practices” by Brazil, a move that could provide a legal basis for imposing tariffs on South America’s largest economy.
On Tuesday, prosecutors asked the trial judges of the Supreme Court to find Bolsonaro guilty of “armed criminal association” and planning to “violently overthrow the democratic order.”
The defense must still present its closing arguments, after which a five-member panel of judges including Moraes will decide the ex-president’s fate.
Bolsonaro and seven co-accused risk up to 40 years in prison.
He has repeatedly stated his desire to be a candidate in presidential elections next year, but has been ruled ineligible to hold office by a court that found him guilty of spreading misinformation about Brazil’s electoral system.
Lula, for his part, said Friday he intends to seek another term.
“You can be sure that I will be a candidate again... I will not hand this country over to that bunch of lunatics who almost destroyed it,” the 79-year-old said at a public event in the state of Ceara.
Moraes has repeatedly clashed with Bolsonaro and other rightwing figures he has accused of spreading fake news.
Last year, the judge suspended tech titan Elon Musk’s X network in Brazil for 40 days for failing to tackle the spread of disinformation shared mainly by Bolsonaro backers
 

 


Trump signs stablecoin law as crypto industry aims for mainstream adoption

Trump signs stablecoin law as crypto industry aims for mainstream adoption
Updated 19 July 2025

Trump signs stablecoin law as crypto industry aims for mainstream adoption

Trump signs stablecoin law as crypto industry aims for mainstream adoption
  • Law requires tokens to be backed by liquid assets
  • Measure is first major crypto law enacted in US
  • Critics say loopholes in law risk making US haven for criminals

WASHINGTON: US President Donald Trump on Friday signed a law to create a regulatory regime for dollar-pegged cryptocurrencies known as stablecoins, a milestone that could pave the way for the digital assets to become an everyday way to make payments and move money.
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 law is a huge win for crypto supporters, who have long lobbied for such a regulatory framework in a bid to gain greater legitimacy for an industry that began in 2009 as a digital Wild West famed for its innovation and speculative chaos.
“This signing is a massive validation of your hard work and pioneering spirit,” said Trump at a signing event that included dozens of government officials, crypto executives and lawmakers. “It’s good for the dollar and it’s good for the country.”
Treasury Secretary Scott Bessent, in a statement, said the new technology would buttress the dollar’s status as the global reserve currency, expand access to the dollar economy and boost demand for US Treasuries, which back stablecoins.
Stablecoins are designed to maintain a constant value, usually a 1:1 US dollar peg, and their use has exploded, notably by crypto traders moving funds between tokens. The industry hopes they will enter mainstream use for sending and receiving payments instantly.
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.

 

Crypto companies and executives argue such legislation will enhance stablecoins’ credibility and make banks, retailers and consumers more willing to use them to transfer funds instantly.
The stablecoin market, which crypto data provider CoinGecko said is valued at more than $260 billion, could grow to $2 trillion by 2028 under the new law, Standard Chartered bank estimated earlier this year.
The law’s passage culminates a long lobbying effort by the industry, which donated more than $245 million in last year’s elections to aid pro-crypto candidates including Trump, according to Federal Election Commission data.
The Republican president, who has launched his own coin, thanked executives for their support during the 2024 presidential campaign, saying, “I pledged that we would bring back American liberty and leadership and make the United States the crypto capital of the world, and that’s what we’ve done.”
Democrats and critics have said the law should have blocked big tech companies from issuing their own stablecoins, which could increase the clout of an already powerful sector, contained stronger anti-money laundering protections and prohibited foreign stablecoin issuers.
“By failing to close known loopholes and protect America’s digital dollar infrastructure, Congress has risked making the US financial system a global haven for criminals and adversarial regimes to exploit,” said Scott Greytak, deputy executive director of Transparency International US

Could boost demand for T-bills
Big US banks are internally debating an expansion into cryptocurrencies as regulators give stronger backing to digital assets, but banks’ initial steps will focus on pilot programs, partnerships or limited crypto trading, Reuters reported in May.
Several crypto firms including Circle and Ripple are seeking banking licenses, which would cut costs by bypassing intermediary banks.
Backers of the bill have said it could potentially give rise to a new source of demand for short-term US government debt, because stablecoin issuers will have to purchase more of the debt to back their assets.
Trump has sought to broadly overhaul US cryptocurrency policies, signing an executive order in March establishing a strategic bitcoin reserve.
The president launched a meme coin called $TRUMP in January and partly owns crypto company World Liberty Financial.