Recent stablecoin laws, like the US "GENIUS Act" signed in July 2025, are ushering in a new era of regulation. This landmark legislation, alongside the EU's MiCA, aims to bolster consumer protection and financial stability. Key provisions include mandatory 1:1 reserve backing with high-quality, liquid assets (like cash or short-term Treasuries), regular independent audits, and public disclosures of reserve composition. Issuers must also comply with strict anti-money laundering (AML) and know-your-customer (KYC) requirements. These laws seek to provide regulatory clarity, preventing market failures and fostering responsible innovation in the rapidly evolving digital asset space.
