#GENIUSAct What is the GENIUS Act (Governing & Establishing National Innovation for U.S. Stablecoins)?

The GENIUS Act, now heading to President Trump, is landmark legislation providing a federal framework for fiat‑backed stablecoins, with key provisions including:

1. Clear regulatory structure

Federal licensing for stablecoin issuers (via OCC for nonbank issuers) and optional state oversight .

1:1 reserve requirement in high-quality liquid assets (e.g., dollars, govt bonds) .

Transparency & consumer protection

Mandatory monthly reserve disclosures and annual audits for large issuers .

Holders gain legal redemption rights if the issuer fails .

3. AML & sanctions compliance

Issuers treated as regulated financial institutions under Bank Secrecy Act .

4. Limitations on non‑financial firms

Only financial entities can issue stablecoins unless non‑financial firms obtain unanimous approval .5. Federal‑state balance & Treasury oversight .