The stablecoin law is a new regulation designed to make digital money safer and more trustworthy. Stablecoins are cryptocurrencies tied to stable assets like the U.S. dollar. They are often used for fast payments and trading without the price swings of regular cryptocurrencies like Bitcoin.
This law requires stablecoin issuers to keep enough money in reserve to match every coin they create. That means if someone owns one stablecoin worth \$1, the company must hold \$1 in safe, liquid assets. Issuers must also allow users to exchange their stablecoins for real money at any time.
The law includes rules for audits, licensing, and oversight by financial regulators. Its goal is to protect users, prevent fraud, and reduce risks to the broader economy. Supporters believe it brings much-needed trust and structure to the fast-growing world of digital finance.
In short, the stablecoin law is about safety, transparency, and helping digital money work smoothly within the existing financial system.