#StablecoinLaw The GENIUS Law establishes a new regulatory framework for "payment stablecoins," which are defined as any digital asset that:

is used or designed to be used as a means of payment or settlement, and

whose issuer:

is obligated to convert, exchange, or repurchase for a fixed amount of monetary value, excluding digital assets denominated in a fixed amount of monetary value; and

states that such issuer will maintain, or create a reasonable expectation of maintaining, a stable value linked to a fixed amount of monetary value.

The definition of "payment stablecoin" does not include a digital asset that is (i) a national currency; (ii) a deposit (including deposits recorded using distributed ledger technology); or (iii) a security. The Law further clarifies that payment stablecoins are not securities (under the jurisdiction of the United States Securities and Exchange Commission (SEC)) or commodities (under the jurisdiction of the Commodity Futures Trading Commission (CFTC)) and are not allowed to pay holders returns or interest solely in relation to the holding, use, or retention of such payment stablecoins