#GENIUSAct pls follow me I will follow you back kind request lovely people 🤗😀🍭💗👍🙂
The GENIUS Act—short for Guiding and Establishing National Innovation for U.S. Stablecoins—is a landmark U.S. law that creates a comprehensive regulatory framework for dollar-backed stablecoins. Signed into law by President Donald Trump on July 18, 2025, it’s being hailed as a turning point for crypto regulation.
🏛️ What the GENIUS Act Does
- Defines who can issue stablecoins: Only licensed entities like banks, federally chartered nonbanks, or state-regulated firms certified by the Treasury.
- Requires 1:1 reserve backing: Stablecoins must be backed by U.S. dollars or liquid assets like short-term Treasuries.
- Mandates transparency: Issuers must provide regular public disclosures and undergo audits if assets exceed $50 billion.
- Protects consumers: Stablecoin holders get priority in bankruptcy, and misleading marketing (e.g., claiming government backing) is banned.
- Bans interest-bearing stablecoins: Yield must come from secondary platforms like DeFi, not the stablecoin itself.
- Enforces compliance: Issuers must follow anti-money laundering rules and be able to freeze or burn coins if legally required.
🌍 Why It Matters
- Boosts trust and adoption: Mastercard called it a “historic turning point” that could bring stablecoins into mainstream finance.
- Opens doors for big players: Banks like JPMorgan and tech giants like Apple are now exploring stablecoin launches.
- Strengthens the U.S. dollar: By requiring reserves in Treasuries, it reinforces the dollar’s role as the global reserve currency.
- Shifts crypto strategy: Offshore and permissionless protocols may lose U.S. access unless they partner with compliant issuers.