Stablecoin Law: Recent Updates in the U.S. 🇺🇸
The U.S. Congress is advancing stablecoin legislation with the GENIUS Act and STABLE Act, aiming to regulate dollar-pegged cryptocurrencies. The GENIUS Act, passed by the Senate (68-30) and House (308-122), establishes a federal framework requiring stablecoins to be backed by liquid assets like U.S. dollars and Treasury bills, with monthly reserve disclosures. It clarifies stablecoins aren’t securities, offering regulatory clarity. However, critics like Senator Warren argue it lacks consumer protections and national security safeguards, risking financial instability. The bill awaits President Trump’s signature to become law.
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The crypto industry views this as a milestone, enabling wider stablecoin adoption in mainstream finance. Banks and retailers like JPMorgan are exploring stablecoin offerings, with transactions hitting $28 trillion last year. Yet, concerns persist over loopholes, like foreign issuers evading U.S. regulations, potentially undermining domestic oversight. The legislation balances innovation with federal and state coordination, but debates continue over privacy protections and anti-money laundering measures. As stablecoins grow, reshaping payments, Congress must address these gaps to ensure consumer safety and financial stability while fostering a digital dollar era.
