#GENIUSActPass

The GENIUS Law is a legislative proposal in the United States aimed at regulating stablecoins, which are cryptocurrencies designed to maintain a stable value, generally linked to a fiat currency such as the US dollar. The law establishes a framework for the issuance and use of these coins, with the goal of protecting consumers and ensuring financial stability.

**What does the GENIUS Law entail?**

**Regulation of stablecoins:**

The law seeks to establish a regulatory framework for stablecoins, defining requirements for their issuance and use, including transparency standards, auditing, and anti-money laundering laws.

**Backing with liquid assets:**

The law requires that stablecoins be backed by liquid assets, such as cash or US Treasury bonds, to ensure parity with the currency to which they are linked.

**Consumer protection:**

The law includes measures to protect consumers, such as risk disclosure, refund mechanisms, and liquidity requirements.

**Transparency and auditing:**

Issuers of stablecoins with a large number of tokens in circulation are required to undergo annual audits by independent entities.

**AML/CFT standards:**

The law requires that issuers of stablecoins **meet** anti-money laundering and counter-terrorism financing standards.

**Why is the GENIUS Law important?**

**Consolidation of the dollar:**

Some analysts suggest that the law could consolidate the role of the US dollar as the reference currency in the cryptocurrency space, especially in the realm of stablecoins.

**Institutional adoption:**

The clear regulation and transparency provided by the law could encourage institutional adoption of stablecoins, as it would provide greater security and confidence to investors.