#StablecoinLaw
Stablecoin Law in the US
The US is moving towards establishing a regulatory framework for stablecoins. Two key bills are being considered: the *STABLE Act* (House) and the *GENIUS Act* (Senate). Both aim to create a clear regulatory environment for stablecoin issuance and use.
Key Provisions of the Bills
- *Permitted Payment Stablecoin Issuers*: Both bills allow payment stablecoins to be issued by subsidiaries of insured depository institutions, other entities approved by the Office of the Comptroller of the Currency (OCC), and entities authorized under qualifying state regimes.
- *Regulatory Oversight*: The GENIUS Act designates the Comptroller as the primary federal regulator for federal qualified nonbank payment stablecoin issuers.
- *Reserve Requirements*: Stablecoin issuers must maintain reserves backing their stablecoins.
- *Bank Secrecy Act (BSA) Compliance*: Stablecoin issuers are treated as financial institutions under the BSA for anti-money laundering (AML) and sanctions compliance.
- *Insolvency Priority*: Claims of stablecoin holders against payment stablecoin issuers have priority over other claims in insolvency .
Differences Between the Bills
- *Effective Date*: The STABLE Act has a shorter effective date timeline compared to the GENIUS Act.
- *Federal vs. State Oversight*: The bills differ on how to allocate authority between federal and state regulators.
Implications
The establishment of a clear regulatory framework for stablecoins in the US could stimulate industry growth by providing regulatory certainty. Both bills reflect bipartisan consensus on the need for stablecoin regulation .
Would you like me to look into more details about stablecoin regulation or provide updates on the progress of these bills.
