#StablecoinLaw Stablecoin law refers to legislation and regulations designed to govern the issuance and use of stablecoins, a type of cryptocurrency pegged to an asset like the U.S. dollar to maintain a stable value. The primary goal is to mitigate risks to consumers and the broader financial system by ensuring stability, transparency, and accountability.
A key example is the U.S. "GENIUS Act," signed into law in July 2025, which establishes a comprehensive federal framework. It mandates that stablecoins be backed 1-to-1 with high-quality, liquid assets and requires issuers to comply with anti-money laundering and consumer protection rules. Similarly, the European Union's Markets in Crypto-Assets (MiCA) regulation imposes reserve requirements and prohibits interest payments on stablecoins. These laws aim to provide clarity, foster consumer trust, and prevent market instability.