#USStablecoinBill đ What are the key provisions?
î¨0-1î¨ Full reserve backing & audits â Issuers must maintain 1:1 backing with high-quality assets (like cash or Treasuries) and undergo monthly auditsâŻî¨ .
î¨445-0î¨ Licensing & regulated issuance â Only federally or state-licensed entities (e.g., OCC or Fed-regulated) can issue stablecoinsâŻî¨ .
î¨611-0î¨ Ban on algorithmic stablecoins â To avoid collapses like Terra-LUNA, purely algorithmic designs are prohibitedâŻî¨ .
î¨749-0î¨ Consumer protections â Includes redemption rights, fraud prevention, and ensuring holders have priority in issuer bankruptcy casesâŻî¨ .
î¨907-0î¨ Federal vs. state oversight â Smaller issuers under ~$10âŻbillion can opt for state regulation, while larger ones fall under federal controlâŻî¨ .
î¨1074-0î¨ Exclusion from securities law â Clarifies stablecoins arenât regulated as securities by the SEC or CFTCâŻî¨ .
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đ§ Whoâs pushing which bill?
Two primary legislative efforts are converging:
î¨1205-1î¨ GENIUS Act (Senate) â Passed Senate committee 18â6. Includes provisions for offshore issuers complying with U.S. law; targeting floor vote soonâŻî¨ .
î¨1464-0î¨ STABLE Act (House) â Introduced in March; differs slightly (e.g. foreign issuer rules). Now being reconciled with GENIUS ActâŻî¨ .
î¨1616-0î¨ Target timeline â Aiming for final bill by August 2025âŻî¨ .
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đŽ Why it matters
1. Boost in institutional and public trust
î¨1702-1î¨ Clear regulation and auditability could make stablecoins viable for mainstream use in payments, DeFi, and cross-border transfersâŻî¨ .
2. Industry shake-up
î¨1958-1î¨ Estimates suggest up to 70% of current stablecoins may fail to comply, leading to market consolidationâŻî¨ .
3. Balancing innovation and safety
î¨2120-1î¨ By banning risky models while allowing licensed entities, the bill aims to foster innovation within a safer structureâŻî¨ .
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đ Current status & outlook
Senate committee approval (GENIUS Act)
House deliberation (STABLE Act under negotiation)
