#StablecoinLaw Stablecoin Law
In the United States, the *GENIUS Act* was recently signed into law, marking a pivotal moment for the stablecoin market. This law establishes a clear framework for the issuance and trading of stablecoins, which may open the door to significant interest from traditional finance ¹.
Key Features of the GENIUS Act
- *Dual Regulation*: Issuers with a market value exceeding $10 billion will be subject to federal oversight, while smaller issuers can operate under state-level regulations.
- *Reserve Requirements*: Stablecoins must be backed 1:1 by high-quality liquid assets such as cash or U.S. Treasury bonds.
- *Consumer Protection*: Users can redeem stablecoins at face value without delay, with issuers complying with anti-money laundering and know-your-customer laws.
- *Ban on Algorithmic Stablecoins*: The law imposes a two-year ban on algorithmic stablecoins.
Impact on the Cryptocurrency Market
This law could lead to increased institutional participation in the stablecoin market, enhancing liquidity and stability. It also aims to solidify the dominance of the U.S. dollar in the digital age ¹ ².
Do you want to know more about the effects of this law or have other questions about stablecoins?
