#StablecoinLaw

Stablecoin Law Overview

Stablecoin laws are evolving in the U.S., with proposed legislation aiming to establish a regulatory framework for stablecoin issuance and use. Two key bills are the *STABLE Act* (House) and the *GENIUS Act* (Senate).

Key Provisions of the Bills

- *Regulation of Stablecoin Issuers*: Both bills outline requirements for stablecoin issuers, including reserve practices, supervision, enforcement, and Bank Secrecy Act/Anti-money Laundering (BSA/AML) compliance.

- *Permitted Issuers*: Stablecoins can be issued by subsidiaries of insured depository institutions, nonbank entities approved by the OCC, or entities authorized by state regimes.

- *Reserve Requirements*: Issuers must back stablecoins with tangible, liquid assets like U.S. Treasuries or cash equivalents.

- *Transparency and Audits*: Regular audits and disclosures are required to ensure solvency and protect consumers.

Impact and Future Outlook

- The *GENIUS Act* has passed the Senate Banking Committee and is likely to pass given bipartisan support and endorsement by President Trump.

- Clear regulations could encourage growth in the crypto ecosystem by providing safety and simplicity for newcomers.

- The legislation may reshape competitive dynamics, potentially favoring larger players due to increased regulatory costs ¹ ² ³.

Would you like me to look further into stablecoin regulations or their impact on the crypto market?