#StablecoinLaw The GENIUS Law, a historic legislation regulating stablecoins in the United States, has been signed by President Donald Trump. This law establishes a federal framework for the issuance, supervision, and use of stablecoins, which are considered crucial for the digital financial sector.
*Key provisions of the GENIUS Law:*
- *Reserve requirements*: Stablecoin issuers must maintain fully backed reserves in cash, bank deposits, short-term Treasury bonds, or other liquid assets.
- *Transparency*: Monthly audits by registered accounting firms are required, with details on the composition of reserves.
- *Regulatory oversight*: Entities may choose federal or state regulation if the state regime is "substantially similar" to the federal one and has a capitalization not exceeding $10 billion.
- *Consumer protection*: Strict rules for the custody and segregation of user assets.
*Impact and consequences:*
- *Strengthening the US dollar*: The law aims to reinforce the dominance of the dollar in digital transactions.
- *Reduction of financial costs*: The growing demand for Treasury bonds could reduce financial costs for the government.
- *Innovation*: The law promotes competition between banks and fintechs, allowing them to issue stablecoins under a clear regulatory framework.