#StablecoinLaw

The US has recently passed its first federal stablecoin law, known as the GENIUS Act, which aims to regulate stablecoins and provide clarity on their usage. Here's what you need to know:

*Key Provisions:*

- *Reserve Requirements*: Stablecoin issuers must hold equivalent reserves in cash or short-term Treasury bills to back their stablecoins 1:1.

- *Transparency Disclosures*: Issuers are required to disclose their holdings every month.

- *Anti-Money Laundering Rules*: The law includes strict anti-money laundering rules to prevent illicit activities.

- *Permission for Commercial Entities*: Banks, retailers, and tech companies are now allowed to issue their own compliant stablecoins.

*Impact:*

- *Market Growth*: The law is expected to boost the market for stablecoins, which currently stands at $238 billion and is projected to reach $2 trillion.

- *Institutional Adoption*: The regulatory clarity provided by the GENIUS Act is likely to increase institutional confidence in stablecoins.

- *Disruption of Traditional Payment Systems*: The law may disrupt credit card networks and payment processors as more entities are able to issue stablecoins ¹.

*Global Regulatory Landscape:*

- *European Union*: The EU's Markets in Crypto-Assets (MiCA) Regulation emphasizes comprehensive oversight and reserve requirements for stablecoin issuers.

- *United Kingdom*: The UK's Financial Services and Markets Act 2023 classifies stablecoins as "systemic payment instruments" and emphasizes oversight by the FCA.

- *Singapore*: Singapore's Payment Services Act emphasizes transparency and reserve requirements for stablecoin issuers, making it a hub for stablecoin activity.