#USStablecoinBill

The RUU Stablecoin AS refers to two important bills aimed at regulating stablecoins in the United States: the STABLE Bill and the GENIUS Bill.

Key Provisions of the STABLE Bill

- Approved by the House Financial Services Committee with a vote of 32-17 in favor

- Aims to establish a framework for digital assets, providing clarity on regulatory oversight and investor protection

- Dominated by concerns about conflicts of interest due to Donald Trump's involvement in the launch of the World Liberty Financial stablecoin

Key Provisions of the GENIUS Bill

- Introduced by Senators Tim Scott, Bill Hagerty, Cynthia Lummis, and Kirsten Gillibrand to establish a clear regulatory framework for payment stablecoins

- Defines payment stablecoins as digital assets pegged to a fixed monetary value, used for payments or settlements

- Requires stablecoin issuers to maintain 1:1 reserves, undergo regular audits, and comply with anti-money laundering (AML) and know your customer (KYC) rules

Comparison of Both Bills

Both bills aim to regulate stablecoins, but the GENIUS Bill takes a clearer and more flexible approach. Key differences include ¹ ² ³:

- *Scope*: The GENIUS Bill focuses on payment stablecoins, while the STABLE Bill has broader implications for digital assets

- *Oversight*: The GENIUS Bill proposes a dual regulatory framework with federal and state oversight, depending on the size of the issuer

- *Reserves*: Both pieces of legislation require strict reserve standards, but the GENIUS Bill details high-quality and liquid assets such as cash and government bonds

Implications

The passage of either bill could have significant impacts on the stablecoin market, providing clarity and protection for investors while encouraging innovation. However, the differences between the two bills may require further negotiation before a final version is enacted.