#StablecoinLaw The US is on the verge of enacting a stablecoin law, with two key bills making their way through Congress: the *STABLE Act* (House of Representatives) and the *GENIUS Act* (Senate). These bills aim to establish a federal regulatory framework for stablecoins, which are digital assets designed to maintain a stable value relative to a national currency.
*Key Provisions:*
- *Licensing Requirements*: Only federally or state-approved entities can issue stablecoins.
- *Reserve Requirements*: Issuers must maintain 1:1 reserve backing with safe assets like US currency or Treasury bills.
- *Transparency*: Monthly audited reports on reserve holdings are required.
- *Federal Preemption*: The STABLE Act preempts state licensing requirements for federally approved issuers.
*Differences Between the Bills:*
- The STABLE Act has a more centralized framework with broader federal preemption, while the GENIUS Act maintains greater state regulatory authority.
- The GENIUS Act includes a $10 billion threshold for state-chartered issuers to transition to federal supervision.
*Timeline:*
- The STABLE Act is expected to be voted on in the House as early as July 2025.
- The GENIUS Act is being advanced in the Senate, with potential for reconciliation and final passage before the August 2025 recess ¹ ².