#StablecoinLaw

Here’s an in‑depth overview of **#StablecoinLaw**, focusing on the GENIUS Act and its implications (100+ words):

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**#StablecoinLaw – The GENIUS Act: U.S. Stablecoin Regulation Enters a New Era**

The **GENIUS Act** (Guiding and Establishing National Innovation for U.S. Stablecoins Act) represents the first complete federal legislative framework for payment‑stablecoins in U.S. history. Signed into law on **July 18, 2025**, it mandates that only **permitted payment stablecoin issuers**—such as bank subsidiaries or licensed non-bank entities—may issue U.S.-dollar–pegged stablecoins, backed on a strict **1:1 basis** with high-quality liquid assets like cash or short-term U.S. Treasuries ([Wikipedia][1]).

Issuers must conduct **monthly reserve attestations**, and those with more than **\$50 billion** in circulation are required to submit **annual independent audits**. Holders receive **priority redemption rights** in case of issuer insolvency, giving consumer protection a judicial guarantee ([The Crypto News][2]).

The Act introduces a **dual federal vs state licensing regime**: issuers under \$10 b in circulation may opt for state oversight (provided it mirrors federal standards); large-scale issuers must operate under federal supervision via regulators like the OCC or the Federal Reserve ([Skadden][3], [TRM Labs][4], [Gibson Dunn][5]).

To enhance enforcement, stablecoin issuers are now classified as **financial institutions** under the Bank Secrecy Act. They must implement **AML/KYC protocols**, transaction monitoring, and sanctions compliance. The Act also prohibits deceptive marketing—no project may call itself a “payment stablecoin” without official approval—and noncompliant issuers face civil penalties up to **\$100,000 per day** ([TRM Labs][4]).

Effective enforcement begins **18 months after enactment** (around **November 2026**), allowing regulators and issuers time to adapt. During that period, rules and f .