#GENIUSActPass

What is the GENIUS Act?

Focus on Stablecoins: The primary aim of the GENIUS Act is to establish a regulatory framework for stablecoins, which are a type of cryptocurrency typically pegged to the value of a fiat currency like the U.S. dollar.

Regulatory Clarity: It seeks to provide clear rules and guidelines for stablecoin issuers, addressing concerns about consumer protection, anti-money laundering (AML), and financial stability.

Key Provisions:

1:1 Backing: Requires stablecoins to be fully backed by U.S. dollars or highly liquid, short-dated U.S. Treasuries.

Segregated Reserves: Mandates that reserves be held in accounts separate from operating capital.

Audits and Reporting: Requires regular audits and compliance with Bank Secrecy Act programs, including customer due diligence and suspicious activity reporting.