#StablecoinLaw The US government has recently passed the GENIUS Act, a law governing dollar-linked stablecoins. This legislation aims to provide regulatory clarity and oversight to the stablecoin industry, currently valued at $265 billion.

*Key Provisions of the GENIUS Act:*

- *Mandatory Reserve Requirements*: Stablecoin issuers must maintain sufficient reserves to back their tokens.

- *Audits and Compliance*: Regular audits will be conducted to ensure compliance with the new regulations.

- *Ban on Algorithmic Stablecoins*: Algorithmic stablecoins are prohibited due to their potential risks.

*Impact on the Crypto Market:*

- *Increased Institutional Adoption*: The GENIUS Act is expected to attract more institutional investors to the stablecoin space, driving growth and expansion.

- *Regulatory Clarity*: The law provides a clear framework for stablecoin issuers, custodians, and users, reducing uncertainty and operational risks.

- *Cross-Border Collaboration*: Foreign stablecoin issuers may seek US regulatory approval to expand their reach, promoting global cooperation.¹ ²

*Market Reaction:*

- *Growth in Institutional Crypto Assets*: Institutional crypto assets under management (AUM) have surged to $45 billion, with stablecoins accounting for over 60% of institutional digital asset holdings.

- *Major Institutions Entering the Space*: Banks like Bank of America, U.S. Bank, and Amazon are planning to launch stablecoin products, leveraging the regulatory clarity provided by the GENIUS Act.