#USStablecoinBill

The U.S. Stablecoin Bill, known as the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), aims to establish a comprehensive regulatory framework for stablecoins. It mandates that issuers maintain 1:1 reserves in U.S. dollars or high-quality liquid assets, prohibits rehypothecation, and requires monthly reserve certifications. The bill introduces a dual regulatory approach: issuers with over $10 billion in market capitalization would fall under federal oversight, while smaller issuers could operate under state regulation, provided the state's framework aligns with federal standards. Additionally, the legislation bans algorithmic stablecoins to prevent risks similar to past collapses like TerraUSD. Despite initial bipartisan support, the bill faces opposition from some Senate Democrats who express concerns over consumer protection, anti-money laundering provisions, and potential conflicts of interest related to political affiliations. As debates continue, the GENIUS Act represents a significant step toward integrating stablecoins into the U.S. financial system with clear regulatory guidelines.