Establishing Safety and Regulation for US Payment Stablecoins (GENIUS Act).
This law creates a regulatory framework for payment stablecoins, aiming to enhance financial security for users of these digital assets. It mandates that issuers maintain reserves on at least a 1:1 basis in specified assets and ensures that stablecoin holders' claims have priority over other claims if an issuer faces insolvency. This allows citizens to use dollar-pegged digital currencies more safely.
Key points
All payment stablecoins must be 100% backed by reserves consisting of assets like cash, deposits, or short-term Treasury bills.
Issuers must publish a monthly report on their website detailing the composition of their reserves, which must be examined by a registered public accounting firm.
If a stablecoin issuer becomes insolvent, claims by stablecoin holders have first priority over any other claim against the debtor.
The law amends legal definitions to clarify that payment stablecoins issued by permitted issuers are not considered securities.
Status:
Introduced
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