#USStablecoinBill
What is the GENIUS Act?
The GENIUS Act is a proposed U.S. legislation aimed at creating a comprehensive regulatory framework for the issuance and regulation of stablecoins in the United States. The law requires stablecoin issuers to be licensed and under federal or state oversight, ensuring full 1:1 financial reserves in U.S. dollars or high-quality liquid assets.
What are the key points in the law?
Definition of stablecoin: A digital currency designed for use as a means of payment or settlement, fully backed by liquid assets.
Issuance requirements: The issuer must be licensed and under federal or state oversight, with full financial reserves.
Consumer protection: Imposing strict liquidity and capital standards, and prohibiting the use of reserves for other purposes.
Controversial exemptions: Some foreign entities, such as Tether, may be exempt from these requirements for a certain period.
What challenges does the law face?
Despite initial support, nine Democratic senators withdrew their support for the law, citing concerns about money laundering and risks to the financial system.
Is there a conflict of interest?
Concerns have been raised about the Trump family's ties to World Liberty Financial, which owns a stablecoin called USD1, and its involvement in billion-dollar deals, raising questions about potential conflicts of interest.