#GENIUSActPass #GENIUSActPass

The GENIUS Act is a bill in the United States aimed at regulating stablecoins, which are digital currencies pegged to the value of stable assets such as the US dollar [1, 2]. The law focuses on consumer protection, ensuring the integrity of the financial system, and strengthening the status of the US dollar [1, 3].

Key Features of the GENIUS Act:

Federal Regulation:

The law establishes a regulatory framework for stablecoins at the federal level, ensuring uniform oversight of their issuance and use [1, 3].

Stablecoin Backing:

The law requires stablecoins to be backed 1:1 by liquid assets such as the US dollar or high-quality assets, enhancing their stability and protecting consumers [1, 2].

Consumer Protection:

The law includes provisions to protect consumers, including giving priority to stablecoin holders in the event of the issuer's bankruptcy [2, 8].

Anti-Money Laundering Compliance:

The law requires stablecoin issuers to comply with anti-money laundering laws [2, 8].

Transparency and Accountability:

The law requires stablecoin issuers to periodically disclose the composition of their reserves, enhancing transparency and accountability.