🇺🇸 President Trump Signs GENIUS Act to Regulate Stablecoins
In a significant move for the cryptocurrency sector, President Donald Trump today signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law, marking the first-ever federal regulatory framework for stablecoins in the United States .
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🏛️ Key Takeaways from the GENIUS Act
• Federal framework: The GENIUS Act defines “payment stablecoins” as U.S. dollar-pegged digital currencies used for payments. It mandates 1:1 backing with liquid assets—such as cash, Treasury bills—with monthly audits, quarterly attestations, and annual audits required.
• Dual oversight: Stablecoin issuers will be regulated either by federal banking regulators (e.g., Treasury, OCC) or by state authorities, depending on issuer size. A 3‑year moratorium applies before certain restrictions fully take effect.
• Consumer safeguards: Token holders gain priority in insolvency situations; issuers must comply with anti‑money‑laundering and sanctions rules; interest-yield schemes are banned.
• Conflict-of-interest measures: Members of Congress and senior executive officials (excluding the president) are barred from launching stablecoin ventures while in office.
• International implications: Foreign stablecoins must meet U.S. standards or originate from jurisdictions with equivalent regulatory regimes to enter the U.S. market.