#GENIUSAct 100% Reserve Requirement:

Issuers of stablecoins must maintain a full reserve of liquid U.S. assets like dollars or short-term Treasury bills to back their coins.

Transparency & Disclosure:

Monthly reserve disclosures are mandatory. Audited financial statements are required if the stablecoin’s market cap exceeds $50 billion.

AML Compliance:

All issuers must comply with Anti-Money Laundering (AML) and Counter-Terrorism Financing regulations.

Investor Protection:

In the event of bankruptcy, users holding stablecoins are given first priority to recover funds.

Tech Giants Restricted:

The bill limits Big Tech companies from launching their own stablecoins to prevent monopoly and misuse of user data.

Political Debate:

Senator Elizabeth Warren raised concerns that the bill could benefit Donald Trump, who is linked to a stablecoin project called USD1.

Some Democrats were hesitant, delaying progress earlier this month due to political concerns.