#StablecoinLaw

🏛️ What’s the GENIUS Act?

**Officially called the “Guiding and Establishing National Innovation for U.S. Stablecoins Act.”**

Introduced in Senate (S. 1582) on May 21 2025, passed Senate June 17 (68–30) and House July 17 (308–122), and signed by President Trump on July 18, 2025 .

First major federal stablecoin law, built on bipartisan "Crypto Week" momentum .

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⚖️ Key Rules & Obligations

1. Full reserves in liquid assets – 1:1 backing with USD, deposits, treasuries; issuers must disclose monthly .

2. Monthly attestations & audits – smaller issuers need monthly audits; those with > $50B issuance must undergo PCAOB annual audits .

3. Clear definitions of “payment stablecoi‪n” – not classified as securities or commodities; sets federal and state oversight for issuers .

4. Anti‑money laundering compliance – BSA, OFAC, and AML obligations build in consumer safeguards .

5. Priority in bankruptcy – stablecoin holders are top priority against issuer insolvency .

6. Foreign issuance oversight – foreign stablecoin entities transacting with U.S. users must meet AML, sanctions, and disclosure rules .

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🗓️ Timeline & Next Steps

Effective date: 18 months after enactment (approx. Nov 2026) or 120 days after regulators issue final rules .

Rulemaking window: Federal/state regulators have 180 days to create regulations, with issuer compliance required shortly thereafter .

Three-year transition: Full compliance on custody and transaction restrictions by three years post-signature .

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🎯 Why It Matters

Boosts legitimacy and mainstream use: Analysts believe it could spur stablecoin adoption in payments, treasury demand, and retail .

Investor clarity & consumer safety: Creates transparent standards and federal guardrails .

Critics raise concerns: Potential loopholes (e.g., tech giants issuing stablecoins), regulatory discretion, conflicts of interest with Trump’s ties, and AML weaknesses have drawn scrutiny .