#GENIUSActPass What is the GENIUS Law?

The GENIUS Law refers to the issuance and exchange of stablecoins, a form of digital currency backed by another form of currency such as the US dollar or a commodity like gold.

Stablecoins are designed to be less volatile than other forms of cryptocurrency, which can experience large price swings and, in turn, pose difficulties for individuals using them to facilitate a purchase or sale.

The bill establishes standards for stablecoin issuers, including the requirement that companies maintain a reserve of underlying assets for the cryptocurrency. This provision aims to protect consumers, who otherwise risk being unable to withdraw their holdings in the event of a rapid and widespread sell-off of coins.