The GENIUS Act is a proposed legislation in the United States aimed at regulating stablecoins, which are digital currencies tied to the value of stable assets like the US dollar [1, 2]. The law focuses on consumer protection, ensuring the safety of the financial system, and enhancing the status of the US dollar [1, 3].

Key features of the GENIUS Act:

Federal Regulation:

The law establishes a regulatory framework for stablecoins at the federal level, ensuring unified oversight over their issuance and use [1, 3].

Support for Stablecoins:

The law requires that stablecoins be backed 1:1 by liquid assets such as the US dollar or high-quality assets, which enhances their stability and protects consumers [1, 2].

Consumer Protection:

The law includes provisions to protect consumers, including prioritizing stablecoin holders in case of the issuer's bankruptcy [2, 8].

Compliance with Anti-Money Laundering