Summary of the American GENIUS Act in Key Points:
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✅ Full Name of the Act
GENIUS Act = Guiding and Establishing National Innovation for U.S. Stablecoins Act
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🎯 Its Goal
To regulate stablecoins in America in a way that protects consumers and supports innovation.
📜 Key Provisions
1. Transparency: Every stablecoin must be 100% backed by dollars or liquid assets.
2. Monthly Reports: Issuers are required to publish public reports on reserves.
3. Withdrawal Protection: Users can withdraw their funds at any time.
4. Anti-Money Laundering: Imposing AML (Anti-Money Laundering) obligations.
5. Issuance Licenses: Only licensed entities (banks or specific companies) are allowed to issue currencies.
6. Consumer Priority: If an issuer goes bankrupt, users have priority in recovering their funds.
7. Prohibition of Unregulated Foreign Currencies: Prohibiting the trading of non-compliant foreign stablecoins.
8. Financial Penalties: Up to one million dollars per day in case of violation of the law.
🏛️ Current Status
Approved in the Senate (June 17, 2025).