#StablecoinLaw

Stablecoin law" refers to the evolving legal and regulatory frameworks governing stablecoins, which are a type of cryptocurrency designed to maintain a stable value, typically pegged to a fiat currency like the U.S. dollar, or to commodities like gold. The goal of stablecoin regulation is to address potential risks related to financial stability, consumer protection, anti-money laundering (AML), and countering the financing of terrorism (CFT).

Here's a breakdown of key developments and aspects of stablecoin law in major jurisdictions:

United States:

* The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act): This is a significant recent development. As of July 2025, the GENIUS Act has been signed into law by President Trump.

* Purpose: It aims to establish a comprehensive federal regulatory framework for "payment stablecoins" – digital assets intended for payments or settlement that are redeemable for a fixed amount of monetary value.

* Key Provisions:

* Requires issuers to hold at least one dollar of permitted reserves for every dollar of stablecoins outstanding.

* Imposes reporting requirements and potentially exams by primary federal regulators.

* Clarifies that payment stablecoins are not securities and are not federally insured.

* Introduces a dual-track framework, allowing some smaller issuers (under $10 billion outstanding) to opt into a state-level regulatory regime if it's "substantially similar" to the federal framework.

* Prohibits stablecoin issuers from tying issuance to other services, misrepresenting insured status, or using deceptive names.

* Includes staggered prohibitions on stablecoin issuance for U.S. and foreign issuers.

* Impact: This law is seen as a major step towards providing legal clarity and legitimacy to the stablecoin market in the U.S., potentially fostering growth and institutional adoption.