#StablecoinLaw "Stablecoin law" refers to the emerging body of legislation and regulation specifically designed to govern stablecoins, a type of cryptocurrency engineered to minimize price volatility by pegging their value to a stable asset (like the U.S. dollar or a commodity). This area of law is rapidly developing globally, with significant recent developments in the United States.

Here's a breakdown of key aspects:

1. The GENIUS Act in the United States:

* Major Milestone: As of mid-July 2025, the U.S. has enacted its first major federal law governing cryptocurrencies, specifically focusing on stablecoins. This is known as the "Guiding and Establishing National Innovation for U.S. Stablecoins" or GENIUS Act.

* Purpose: The GENIUS Act aims to provide regulatory clarity, consumer protection, and strengthen the U.S. dollar's reserve currency status by establishing a clear framework for dollar-backed stablecoins.

* Key Provisions:

* Reserve Requirements: Mandates 100% reserve backing with liquid assets like U.S. dollars or short-term Treasuries.

* Disclosure: Requires monthly, public disclosures of the composition of reserves by stablecoin issuers.

* Issuance Requirements: Generally permits stablecoins to be issued only by "Permitted Stablecoin Issuers" (banks, non-banks, credit unions) meeting the Act's requirements. A prohibition on issuing payment stablecoins without being a permitted issuer takes effect three years after enactment (around July 2028).