According to PANews, a draft of the GENIUS Act has been revealed, outlining several key regulatory measures for stablecoin issuers. The draft aims to prohibit misleading claims of FDIC insurance by stablecoin issuers and the use of terms associated with the U.S. government in their naming conventions. Additionally, it seeks to prevent non-financial tech companies, such as Meta and Google, from issuing stablecoins, reinforcing the separation between banking and commerce.
The proposed legislation also aims to enhance enforcement capabilities against violations and expand ethical oversight for special government employees, including figures like Elon Musk. These measures are part of a broader effort to regulate the stablecoin market and ensure transparency and accountability among issuers and related entities.
