#StablecoinLaw The US Congress is advancing stablecoin legislation through two similar bills: the STABLE Act and the GENIUS Act. Both bills aim to establish a regulatory framework for stablecoins, but they differ in key details.

*Key Provisions:*

- *Regulatory Framework*: Both bills would allow payment stablecoins to be issued by subsidiaries of insured depository institutions, other entities approved by the Office of the Comptroller of the Currency (OCC), and entities authorized to issue stablecoins under qualifying state regimes.

- *Reserve Requirements*: Stablecoin issuers would need to maintain 1:1 backing for all outstanding stablecoins, with acceptable reserve assets including cash deposits, US Treasury bills, and central bank reserves.

- *Custody Requirements*: Custodial intermediaries would need to segregate customer assets from their own, ensuring client funds remain protected even if the custodian faces financial difficulties.

- *Supervision and Enforcement*: Federal stablecoin regulators would have enforcement powers, including suspending or revoking a permitted payment stablecoin issuer's registration and assessing civil money penalties.

*Differences between STABLE Act and GENIUS Act:*

- *Federal vs. Tiered Approach*: The STABLE Act creates a uniform federal framework, while the GENIUS Act maintains greater state regulatory authority with a $10 billion threshold for mandatory federal oversight.

- *Algorithmic Stablecoin Provisions*: The STABLE Act imposes a two-year moratorium on new algorithmic stablecoins, while the GENIUS Act directs the Treasury to study algorithmic stablecoins.

- *State Authority and Preemption*: The STABLE Act's preemption provisions supersede state licensing requirements for federally approved issuers, while the GENIUS Act preserves state authority .

*Impact on Stablecoin Issuers:*

- *Circle (USDC)* and *Paxos (PYUSD)* are well-positioned to benefit from the legislation due to their compliance-first approach and existing regulatory relationships.

- *Tether (USDT)*, the world's largest stablecoin issuer.