#StablecoinLaw

The recently signed U.S. Stablecoin Law establishes a federal regulatory framework for stablecoins aiming for mainstream adoption. Key provisions include:

Legal definition of stablecoins for the first time in the U.S., clarifying their classification as payment stablecoins.

Requirement that stablecoins be fully backed by liquid reserves such as U.S. dollars or short-term Treasury bills, ensuring each token is equivalent to actual assets held by issuers.

New federal licensing and reserve requirements for stablecoin issuers to improve transparency and consumer protection.

Imposition of Bank Secrecy Act (BSA) / Anti-Money Laundering (AML) standards tailored to issuer size and complexity, with some differences between the House's STABLE Act and the Senate's GENIUS Act.

Provisions preventing certain federal politicians, including potentially the president, from issuing their own stablecoins.

The law accompanies other crypto measures like the Clarity Act (regulating other digital commodities) and the Anti-CBDC Surveillance State Act (blocking retail central bank digital currencies by the Fed).

This law was passed amid bipartisan support and marks a milestone for stablecoins worth over $160 billion by providing clearer rules aimed at reducing risks from private stablecoins and boosting dollar demand globally.

Legislative negotiation details:

The Senate passed the GENIUS Act with concessions on consumer protection and state law preemption.

The House is advancing the STABLE Act, creating some legislative coordination challenges.

Final comprehensive framework is expected soon, with some provisions possibly attached to must-pass legislation.

Overall, the Stablecoin Law is designed to promote mainstream adoption by enhancing regulatory clarity, consumer protections, and market stability while balancing innovation and oversight.