#StablecoinLaw

The Stablecoin Law is a significant piece of legislation aimed at regulating stablecoins in the United States. Two bills, the STABLE Act and the GENIUS Act, have been proposed to establish a federal regulatory framework for stablecoins ¹.

*Key Provisions:*

- _Regulatory Framework_: Both bills create a regime for the issuance and regulation of payment stablecoins, allowing them to be issued by subsidiaries of insured depository institutions, nonbank entities approved by the OCC, and entities authorized to issue stablecoins under qualifying state regimes ¹.

- _Reserve Requirements_: Stablecoin issuers must maintain reserves backing all outstanding payment stablecoins on at least a one-to-one basis, held in safe assets such as U.S. currency, bank deposits, or Treasury securities ¹.

- _Enforcement and Penalties_: Federal stablecoin regulators would have enforcement mechanisms, including civil money penalties, to ensure compliance with the laws ¹.

*Differences Between the Bills:*

- _Federal Preemption_: The STABLE Act would preempt conflicting state laws, while the GENIUS Act does not include this provision ¹.

- _Consumer Protection_: The GENIUS Act includes broader consumer protection provisions, which were added through amendments ¹.

*Next Steps:*

- The Senate has already voted to advance the GENIUS Act, while the House Financial Services Committee has voted to advance the STABLE Act ¹.

- Compromise between the two bills is expected, but the path forward is uncertain ¹.