#StablecoinLaw The stablecoin law, such as the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) in the United States and the Markets in Crypto-Assets Regulation (MiCA) in the European Union, seeks to regulate the use of these digital currencies backed by traditional assets like fiat currencies.
Key aspects of stablecoin regulation:
- Reserve requirements: Stablecoins must be backed by liquid and transparent assets, such as cash or government bonds.
- Reserve disclosure: Stablecoin issuers must publicly disclose the composition of their reserves.
- Oversight and compliance: Regulatory authorities supervise stablecoin issuers to ensure compliance with rules and protect investors.
- Consumer protection: Regulations aim to prevent fraud and ensure financial stability.