The regulation of stablecoins in the US is beginning to take shape! 🇺🇸 Two bills, the STABLE Act and the GENIUS Act, are in the process of being passed. Both bills aim to create a federal regulatory framework for stablecoins.
*Focus Points of the Bills:*
- *Definition of Stablecoin*: The STABLE Act and the GENIUS Act have similar definitions of stablecoins, but with some differences. The STABLE Act clarifies that stablecoins must be valued in national currency.
- *Stablecoin Reserves*: Both bills require stablecoins to have reserves consisting of safe assets such as US currency, bank deposits, and Treasury securities.
- *Oversight*: The STABLE Act and the GENIUS Act establish oversight by federal and state regulators.
- *Anti-Money Laundering Prevention*: Both bills require stablecoin issuers to comply with Anti-Money Laundering (AML) and Know-Your-Customer (KYC) regulations.
*Implications:*
- *Issuance of Stablecoins*: These bills allow non-banks to issue stablecoins with approval from the Office of the Comptroller of the Currency (OCC).
- *International Compliance*: The bills also regulate cooperation with foreign regulators for stablecoins issued outside the US.
