The United States has passed its groundbreaking genius law and is one step closer to his pledge to make President Trump the “crypto capital of the world.”
Unfortunately for Trump, no matter what his administration does, I’m worried that these efforts will be in vain. For me, the United Arab Emirates will always be the true home of code.
The law, signed by Trump in July, is a more encrypted, positive law from a key part of the administration’s mission from the US, a key part of pushing the US onto the defi podium.
Trump: “The golden age of America is above us, and today’s signature.”
President Trump signs the Genius Act, signaling the first law of the stablecoin Act. pic.twitter.com/jd2ttv0p9b
– Coindesk (@coindesk) July 18, 2025
US stubcoin regulations
It has established a clear regulatory framework for stubcoins in the US, further establishing them within the US regulated capital markets, and retaining stubcoin issuers such as circles and tethers to enhance anti-money laundering compliance. In fact, the move has already strengthened consumer and business trust in digital assets, prompting the Wall Street giant to launch its own stubcoin.
With the world’s largest bank on board with cryptocurrency, we see why Trump thinks his actions give the US an edge as a global crypto superpower. Unfortunately for him, this “huge” leaps code is just one of many small steps the United Arab Emirates took years ago.
In fact, the United Arab Emirates has been actively encouraging crypto entrepreneurs to set up shops on their shores for many years. Initially, its advanced government has established a framework for clearly regulating crystals for cryptographic codes, and has pioneered the way governments regulate cryptographic codes globally.
Dubai’s Virtual Asset Regulatory Authority (VARA) is looking for ways to ease the regulatory costs of small crypto companies.
During Paris Blockchain Week, Vara CEO Matthew White discussed potential solutions including models in which larger entities support smaller entities.
– Satoshi Club (@esatoshiclub) April 11, 2024
The UAE Central Bank (CBUAE) and Dubai Virtual Asset Regulator (VARA) – the world’s first virtual asset regulator – will provide comprehensive monitoring, checking and balance on digital assets, promoting the fostering of transparency, consumer security and DEFI innovation. In the UAE, Crypto is not Wild West. It is a true, legitimate asset class.
Dubai sets standard
The simple fact is that the UAE is much faster than the regulatory block, and it is earning rewards. VARA was founded in 2022, and FSRA in Abu Dhabi implemented its first cryptocurrency regulation framework in 2018. This is a head start for seven years of American genius law. Is the current US government really looking forward to holding a crypto coup later this day?
Additionally, the UAE imposes a zero tax on crypto revenue or capital gains, making it extremely difficult to compete, especially due to the higher tax jurisdictions of the EU and the US. The final result is as follows: The country allows crypto investors and entrepreneurs to thrive, not just survive. We actively encourage crypto investments and trading.
The UAE introduces retroactive VAT exemption for crypto trading https://t.co/aanpfojfyo
– Bitcoin.com News (@BTCTN) October 7, 2024
Going further, the UAE is fully integrating its digital assets into its national infrastructure. By 2026, we will see the Digital Dirham, the central bank digital currency of the United Arab Emirates supported by all financial institutions registered in the UAE.
And, in a more consumer note, in Dubai, you can even buy a home using Bitcoin supported by Cbuae and Vara. With these latest innovations, the UAE has embraced crypto and made it a pillar of its economic landscape, beyond empowering investment activities in its space.
Crypto issuer destination
Looking at the big picture, it’s no wonder the country is a clear first choice destination for exchanges with crypto issuers. And then there’s innovation going on where big crypto players are going.
OKX, the world’s second largest crypto exchange, has launched regulated crypto derivatives for retail investors in the region. Beyond that, there are a staggering number of over 500 crypto startups operating in the country.
https://www.youtube.com/watch?v=2U3GHNN59TC
These organizations and their people were seduced by the UAE by their appetites, infrastructure and aggressive regulations. In my opinion, the act of genius in the United States does not provide a competitive advantage to take away its throne…
At the end of the day, the UAE is unable to accept digital assets in ways other global markets have and challenge themselves as a crypto homeland.
Bitcoin Ownership Rate
Of course, I cannot say I am surprised. They have the highest Bitcoin ownership rate globally at 27.2%, which is an incredible level of appetite. Given all the factors mentioned above, it is no wonder the crypto world has embraced the UAE in return.
Ultimately, the United Arab Emirates is lighter than other countries in their approach to defi in every respect. Regulatory changes in other markets will not fill the gap and replace it as a global leader. The United Arab Emirates will always be Kingpin, and the crown of that code cannot be grabbed.
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