#StablecoinLaw

The US has passed landmark stablecoin legislation, known as the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. This law establishes clear federal rules for stablecoin issuance, reserves, audits, and anti-money laundering compliance. Here are the key points ¹:

*Key Provisions:*

- *Reserve Requirements*: Stablecoins must be 100% backed by high-quality liquid assets, such as US dollars or short-term Treasuries.

- *Licensing Tiers*: Issuers with under $10 billion in stablecoins can seek state-level licenses, while larger entities require federal oversight.

- *AML and KYC Compliance*: Aligning stablecoin operations with traditional banking standards.

- *Consumer Protections*: Ensuring stablecoin holders have priority claims in insolvency proceedings.