#StablecoinLaw The US has recently passed landmark legislation to regulate stablecoins, providing a clear framework for the industry. Here are the key points:
*Key Provisions:*
- *Reserve Requirements*: Stablecoins must be backed one-to-one with reserves held in liquid assets such as US Treasuries.
- *Annual Audits*: Issuers with a market capitalization exceeding $50 billion will be subject to annual audits to ensure compliance.
- *Regulatory Oversight*: Federal or state regulators will oversee stablecoin issuers to enhance transparency and consumer protection.
- *Licensing Tiers*: Issuers with under $10 billion in stablecoins can seek state-level licenses; larger entities require federal oversight.
- *AML and KYC Compliance*: Aligning stablecoin operations with traditional banking standards ¹ ².
*Legislative Progress:*
- The US House of Representatives has passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), which is expected to become law upon the president's signature.
- The Senate is expected to fast-track the Stablecoin Trust and Transparency Act (STTA), which would mandate full dollar-equivalent reserves, Treasury registration, and independent audits for stablecoin issuers ³ ⁴.
*Impact:*
- The new regulations are expected to provide clarity and stability to the stablecoin market, potentially leading to increased institutional adoption.
- The laws may also impact major stablecoin issuers like Circle and Tether, requiring them to comply with the new regulations ² ⁵.
