#StablecoinLaw

Stablecoin law refers to the regulatory frameworks being developed and implemented around the world to govern stablecoins. Stablecoins are a type of cryptocurrency designed to maintain a stable value, typically by being pegged to a fiat currency like the U.S. dollar, or to other assets.

The aim of stablecoin regulation is to provide consumer protection, ensure financial stability, combat money laundering, and foster innovation within the digital asset space.

Here's a breakdown of recent developments in key jurisdictions:

United States:

* The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act): This is a landmark piece of legislation recently signed into law by President Trump (as of July 2025).

* Purpose: It establishes the first federal regulatory framework for stablecoins.

* Key Provisions:

* Requires stablecoins to be backed by high-quality, liquid assets (e.g., U.S. dollars and short-term Treasury bills).

* Mandates that issuers publicly disclose the composition of their reserves monthly.

* Sets out requirements for stablecoin issuers, including compliance with U.S. anti-money laundering and sanctions laws.

* Prohibits members of Congress and their families from profiting off stablecoins, though this ban does not extend to the President and his family.

* Aims to provide regulatory clarity and legitimacy to the stablecoin market, with estimations of it growing significantly.

* Other Related Legislation:

* CLARITY Act: This bill, currently in the Senate, aims to clarify jurisdiction over digital assets, defining which are commodities (regulated by the CFTC) and which are securities (regulated by the SEC).

* CBDC Anti-Surveillance State Act: Also headed to the Senate, this bill prohibits the Federal Reserve from issuing a central bank digital currency (CBDC) without congressional approval.