The U.S. Senate Banking Committee has advanced the bipartisan *GENIUS Act*, aiming to establish a clear regulatory framework for payment stablecoins. Key provisions include:
- *Licensing Requirements*: Only permitted entities can issue payment stablecoins, ensuring issuers meet specific criteria. - *Reserve Backing*: Stablecoins must be fully backed 1:1 with U.S. dollars or high-quality liquid assets like Treasury bills. - *Regulatory Oversight*: Issuers with over $10 billion in market capitalization will be subject to federal supervision, while smaller issuers can operate under state regulation if states meet federal standards. - *Compliance Measures*: Mandatory adherence to Anti-Money Laundering (AML) laws, regular audits, and public disclosure of redemption policies. - *Issuer Restrictions*: Prohibition of algorithmic stablecoins and limitations on issuers to insured depository institutions and qualified nonbank entities.
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#GENIUS Stablecoin Bill Update 📢 *#GENIUS Stablecoin Bill Update*
The U.S. Senate Banking Committee has advanced the bipartisan *GENIUS Act*, aiming to establish a clear regulatory framework for payment stablecoins. Key provisions include:
- *Licensing Requirements*: Only permitted entities can issue payment stablecoins, ensuring issuers meet specific criteria.
- *Reserve Backing*: Stablecoins must be fully backed 1:1 with U.S. dollars or high-quality liquid assets like Treasury bills.
- *Regulatory Oversight*: Issuers with over $10 billion in market capitalization will be subject to federal supervision, while smaller issuers can operate under state regulation if states meet federal standards.
- *Compliance Measures*: Mandatory adherence to Anti-Money Laundering (AML) laws, regular audits, and public disclosure of redemption policies.
- *Issuer Restrictions*: Prohibition of algorithmic stablecoins and limitations on issuers to insured depository institutions and qualified nonbank entities.