$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.