#StablecoinLaw 🟡Stablecoins Take Off in the U.S.: Requirements and Limits for the Arrival of Major Banks

Issuers must maintain reserves to back the assets in a one-to-one ratio. They must consist of dollars, deposits, or short-term Treasury bills and bonds. Donald Trump has kept one of his major promises: to give the United States the first legislation on digital assets, after years of skepticism and oppression from previous administrations and regulators. After the Senate's approval, on Thursday the House of Representatives passed the Genius Act, a regulation that governs stablecoins, and represents the first piece of a broader legislative framework that will need to be debated in the Senate, which includes comprehensive regulation of the digital asset market and a ban on the development of the digital dollar. This law 'will ensure the status of the dollar as the world's reserve currency,' Trump said last Friday after signing the law. What does the regulation cover?

The Genius Act focuses on the regulation of dollar-denominated stablecoins. Stablecoins are cryptocurrencies linked to other assets, generally to traditional and stable currencies like the euro and the greenback, to minimize the volatility of their value. They are used to buy and sell other cryptocurrencies, as a refuge during times of high market volatility, as a means of payment, or for international and instant transfers. The text establishes who the authorized issuers are to offer these assets, introduces a supervision model shared between the federal government and the states, requires full backing in reserves, and imposes transparency obligations on companies. What are the requirements for issuers?

The regulation stipulates that banks, credit unions, and non-bank entities authorized by the Office of the Comptroller of the Currency, which regulates and supervises all national banks, federal savings cooperatives, and federal branches.