$SUI The US government is establishing a regulatory framework for stablecoins through the STABLE Act and GENIUS Act. Key provisions include¹ ² ³:

- *Reserve Requirements*: Stablecoin issuers must maintain 1:1 backing with liquid assets like US dollars or Treasury securities.

- *Disclosure and Transparency*: Monthly reporting and audits by registered accounting firms to ensure reserve sufficiency and compliance.

- *Regulatory Oversight*: Dual regulatory framework with federal and state authorities, including the OCC and state banking regulators.

- *Ban on Algorithmic Stablecoins*: Prohibition on stablecoins without backing assets, like Terra's UST.

- *Effective Date*: The law will take effect 18 months or 120 days after federal agencies finalize rules.

These regulations aim to enhance consumer protection, prevent market consolidation, and ensure financial stability.