#StablecoinLaw Stablecoin law aims to regulate digital assets designed to maintain a stable value, typically pegged to fiat currencies like the US dollar. Recently, the US passed the "GENIUS Act," a landmark federal law establishing a comprehensive framework for payment stablecoins.
Key provisions include:
* Reserve Requirements: Issuers must hold 100% reserves in highly liquid, low-risk assets (e.g., cash, short-term Treasuries).
* Transparency: Monthly public disclosures of reserve composition are mandated.
* Consumer Protection: Strict marketing rules prevent misleading claims (e.g., government backing).
* Illicit Activity: Issuers must comply with AML/CFT laws and be capable of seizing/freezing stablecoins when legally required.