SUMMARY OF STABLECOIN LAW 🇺🇸

🌟 This GENIUS law establishes the first federal legal framework for stablecoin, focusing on user protection, national security, and maintaining the position of the USD as the global reserve currency.

🔒 USER PROTECTION

– Requires stablecoins to have 100% of reserves backed by USD or short-term treasury bonds

– Mandates monthly transparent disclosures of reserve composition

– Prohibits misleading advertising and false claims that stablecoins are government-backed

– In case of bankruptcy, prioritizes the interests of stablecoin holders over other creditors

💵 STRENGTHENING THE POSITION OF THE USD

– Stablecoins must be backed by U.S. assets, increasing demand for U.S. bonds

– Helps maintain the USD's position as the global reserve currency

– Attracts investment and innovation, while creating a clear environment for the stablecoin industry to grow

🛡️ ENHANCING NATIONAL SECURITY & COMPLIANCE

– Applies the Bank Secrecy Act to stablecoin issuers

– Requires the establishment of anti-money laundering systems and compliance with international sanctions

– Issuers must have the ability to freeze, seize, or burn stablecoins upon legal request