#StablecoinLaw . latest stablecoin regulation (#StablecoinLaw)
šŗšø United States ā The GENIUS Act & Federal Framework .In midāJune 2025, the U.S. Senate passed the GENIUS Act (āGuiding and Establishing National Innovation for U.S. Stablecoins Actā), and the House approved it on July 17, with President Trump signing it into law on July 18, 2025 .
Key provisions include:
Mandatory 1:1 backing with U.S. dollars or high-quality liquid assets (e.g. short-term Treasuries).
Public disclosure of reserve holdings, monthly attestations, and thirdāparty audits for large issuers .
Consumer protectionsāincluding redemptions, disclosures on fees/risks, and priority in insolvency proceedings.
Strict AML/KYC compliance, sanctions screening, and fraud prevention systems.
Businesses, including nonbank companies and large retailers, may issue stablecoins but must obtain regulatory approval via a new Stablecoin Certification Review Committee, and banks require oversight by OCC, Fed, or FDIC depending on size and charter type .
Critics point to gaps such as the exclusion of the president from income restrictions (while banning Congress from profiting), continued dominance of offshore tokens like USDT, and minimal FDICālike protection for holders .
This law has already triggered growing interest from major banks like JPMorgan, Citi, and Goldman in issuing licensed stablecoins or deposit tokens for everyday use and crossāborder payments .
š Europe ā MiCA Regulation Fully in Force
The Markets in CryptoāAssets Regulation (MiCA) came into full effect by January 2025 across the EU . It defines stablecoins as either AssetāReferenced Tokens (ARTs) or EāMoney Tokens (EMTs), requiring:
100% reserves, independent quarterly audits, and regular public disclosures.
Strict enforcement measures, including penalties up to ā¬15 million or 3% of turnover for nonācompliance, and delisting of illegal tokens from exchanges .
Nonācompliant coins like several U.S.-based tokens have already been delisted by exchanges operating in the EU
š Asia & Other Jurisdictions
Singapore regulates stablecoins under the Payment Services Act. SGD/G10āpegged tokens must obtain licenses, maintain full reserves, guarantee redemption within five days, and undergo regular audits .
Hong Kongās Stablecoins Bill, adopted in midā2025, establishes licensing, reserve segregation, AML/KYC, and governance rules for issuers of fiat-referenced stablecoins .
Japan only permits licensed banks, trust firms, or money-transfer operators to issue stablecoins. These must be fully backed, redeemable on demand, and subject to AML and other legal controls .
UAE (Abu Dhabi/DIFC) allows issuance of dirham-backed stablecoins under strict reserve and licensing frameworks, while foreignācurrency stablecoins remain limited in use
š§© Summary & Broader Implications
Across regions, core regulatory themes converge around fullāasset backing, audit and transparency mandates, strict AML/consumer protections, and licensing regimes for issuers. While the U.S. GENIUS Act now anchors federal law, MiCA had already set a global standard in the EU. Asia and the Middle East are rapidly aligning with these norms, positioning regulated stablecoins as structural components of financial innovation and payments.
For stakeholdersāusers, platforms, and issuersākey areas to monitor include enforcement actions, compliance costs, interoperability between regimes, and how consumer risk protections evolve internationally.
