U.S. Moves Forward with New Crypto Regulations

Key Points

1. The GENIUS regulation, supported by 102 Democrats and 206 Republicans, establishes requirements for stablecoin issuers, including 1:1 reserve backing with U.S. dollars, Treasury bills, repos, and Federal Reserve deposits.

2. Foreign companies must comply with U.S. regulations to serve customers, and unauthorized stablecoin issuance can result in five-year imprisonment.

3. Stablecoin issuers with more than $50 billion in assets are subject to U.S. oversight, and penalties for compliance violations are clearly defined.

4. The legislation will take effect 18 months after publication or 120 days after approval, with the House's STABLE Act set aside to expedite the process.

5. The U.S. anti-CBDC law prohibits central bank digital currencies, while stablecoins, primarily on the Ethereum network, gain traction.