#StablecoinLaw The **GENIUS Act**, signed into law by President Trump on July 18, 2025, establishes the first federal regulatory framework for **payment stablecoins** in the U.S. Key provisions include:

1. **Definition**: Stablecoins must maintain a 1:1 reserve with liquid assets (e.g., cash, Treasuries) and be redeemable for fixed monetary value .

2. **Issuer Requirements**: Only "Permitted Payment Stablecoin Issuers" (PPSIs)—federally or state-approved entities—can issue stablecoins, with strict AML, disclosure, and audit rules .

3. **Oversight**: Federal regulators (OCC, FDIC) oversee large issuers (>$10B); states regulate smaller ones .

4. **Consumer Protections**: Holders gain priority claims in insolvency, and issuers cannot pay interest .

5. **Foreign Issuers**: Must comply with U.S. standards or face bans .

The law aims to balance innovation with financial stability, taking effect by 2027 .