#StablecoinLaw The "GENIUS Act," recently signed into law in the US, establishes a comprehensive regulatory framework for stablecoins. Here are the main points:

* 100% Reserve Backing: Stablecoin issuers are now required to hold 100% reserves with highly liquid assets, such as U.S. dollars or short-term Treasuries. This is a crucial measure to ensure the stability and redeemability of stablecoins.

* Transparency and Disclosures: Issuers must make monthly, public disclosures of the composition of their reserves. They also need to establish and publicly disclose clear redemption policies, including any fees, with at least seven days' notice for changes.

* Consumer Protection: The law includes strict marketing rules to prevent deceptive practices. Issuers are explicitly forbidden from making misleading claims that their stablecoins are backed by the U.S. government, federally insured, or legal tender. In case of insolvency, stablecoin holders' claims are prioritized over all other creditors.

* Anti-Money Laundering (AML) and Sanctions: Stablecoin issuers are designated as "financial institutions" under the Bank Secrecy Act, subjecting them to robust AML, Know Your Customer (KYC), and transaction monitoring requirements. They must also have the technical capability to seize, freeze, or burn payment stablecoins when legally required and comply with lawful orders.

* Regulatory Clarity: The Act clarifies that compliant stablecoins are neither securities nor commodities, providing a clear regulatory path and avoiding conflicts between different regulatory bodies (like the SEC and CFTC). The primary regulator will typically be the Federal Reserve, the Office of the Comptroller of the Currency (OCC), or a state banking regulator.

* Dual Federal-State Framework: The law establishes a dual federal-state regulatory framework, allowing both federally and state-approved entities to issue stablecoins while maintaining uniform standards.