An updated version of the “Genius Law” has been issued, the Stablecoin Bill, which was proposed by Republican Senator Bill Hajri, today. However, the US Senate Banking Committee revealed plans to make changes on the bill on Thursday.
The main aspects of the law of genius
According to the proposal, the genius law determines the requirements for the issuance of Stablecoins in the United States. This will allow some entities, including companies affiliated with secure banks, non -banking exporters, and the country’s recovered institutions, to issue legal Stablecoins. Exporters must comply with bank -like regulations, including capital, liquidity and privacy standards. Young exporters (who are less than $ 10 billion in the market) can choose regulations at the state level, provided that they are compatible with federal guidelines.
The federal and state regulators will supervise the exporters, as observers deal with federal exporters other than banks and federal reserves that have limited power.
The law shows that Stablecoins for payment is not securities, but their position as commodities is still unclear. It gives priority to Stablecoin holders in insolvency procedures and excludes Stablecoins issued on Blockchains private.
Moreover, Verb Access to the main accounts of the federal reserves of exporters do not impose, nor does it impose new accounting requirements such as those under SAB 121. It also encourages international cooperation for Stablecoin transactions.
Genus Law determines the allowed payment regulations for the permissible payment, as it offers three main registration options:
- Companies affiliated with insured deposit institutions (IDI): This requires approval from federal organizers to issue Stablecoins.
- Sources qualified for federal banks: Non -bank entities approved by the financial observer can issue Stablecoins.
- State qualified exporters: The entities approved by government organizers can issue Stablecoins within the framework of the state.
Exporters must comply with the requirements of reserves, ensure the fully support of Stablecoins, and to disclose the details of the reserves monthly. The redemption procedures should be in place, and exporters cannot re -care for reserves. Priority is given to Stablecoin holders if the source insolvency.
The law also puts supervisory powers and enforcement of organizers, including financial and federal reserve, for federal exporters and states. It restricts exporters ’activities on the functions related to the nails, determines the requirements of capital and liquidity, and provides privacy rules under the Gramm-Leach-Lliley Law.
Federal organizers and federal organizers are granted the status of Stablecoin, with the provisions of supervision, enforcement and backup authority. The law also encourages the international cooperation of the interfering operation in Stablecoin, and it provides for a study on algorithm Stablecoins, and the creation of guard rules for portfolio service providers.
Finally, “reciprocity for paid payments issued in the external judicial authorities” includes “reserve requirements, supervision, anti -money laundering, anti -terrorist features, compliance criteria for sanctions, liquidity requirements, risk management standards, to facilitate international and alternative transactions between the United States that is destroyed for defense.”
Also read: Banking and FinTecs Racing to launch their Stablecoins
