The GENIUS Act, now Public Law 119-27, establishes the first federal regulatory framework for stablecoins in the United States. This landmark legislation requires that only federally licensed entities can offer stablecoin services to U.S. customers, ensuring full reserve backing and adherence to bank-like AML/KYC rules. Additionally, monthly audited reports are mandated, and foreign issuers must comply with stringent U.S. standards to operate in the market.
The act also prohibits interest payments on stablecoins and mandates the segregation of assets to protect client funds. Implementation begins in 2027, with full compliance expected by 2028. While the GENIUS Act aims to reduce market fragmentation and enhance regulatory clarity, comprehensive crypto market regulations are still forthcoming.
GENIUS Act Introduces First U.S. Federal Stablecoin Regulations
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