#StablecoinLaw The "GENIUS Act" is the first major federal law in the U.S. that regulates stablecoins. It defines "payment stablecoins" as digital assets designed for payments/settlements, whose issuer must maintain a stable value (generally 1:1 with the dollar) and be redeemable for a fixed amount.

The law establishes a dual regulatory framework, federal and state, for stablecoin issuers. It requires issuers to maintain 1:1 reserves, publicly disclose their redemption policy, and publish the composition of their reserves monthly. It also prohibits certain practices such as linking issuance to other purchases and the use of misleading names. This legislation seeks to provide regulatory clarity and protect consumers in the growing stablecoin market.