$SUI The US Congress is advancing federal stablecoin legislation through two similar bills: the STABLE Act and the GENIUS Act. Both bills aim to establish a novel federal regulatory framework for stablecoins, but they differ in key details.

*Key Provisions of the Bills:*

- *STABLE Act:*

- *Reserve Requirements*: 1:1 backing with US assets, such as cash and Treasury bills.

- *Issuer Classification*: Only banks or licensed entities can issue stablecoins.

- *Algorithmic Stablecoins*: Two-year ban on new algorithmic stablecoins.

- *Consumer Protection*: Monthly disclosures, audits, and clear redemption policies.

- *GENIUS Act:*

- *Reserve Requirements*: 1:1 backing with high-quality liquid assets, like Treasury bills.

- *Issuer Classification*: Tiered system based on issuer size, with federal oversight for larger issuers.

- *Algorithmic Stablecoins*: Treasury-led study on algorithmic stablecoins, rather than a ban.

- *Consumer Protection*: Mandatory disclosures, redemption rights, and fraud protection.

*Regulatory Framework:*

- *Federal and State Oversight*: Both bills propose dual oversight, but the STABLE Act leans towards centralized federal regulation, while the GENIUS Act allows for more state-level regulation for smaller issuers.

- *Enforcement*: Regulators can impose fines, revoke registration, and pursue cease-and-desist proceedings for non-compliance.

*Recent Developments:*

- The GENIUS Act was signed into law by President Trump on July 18, 2025, establishing a federal regulatory framework for payment stablecoins.

- The law requires stablecoin issuers to prioritize consumer protection, financial stability, and anti-money laundering compliance ¹.