the GENIUS Act

3 Key Essentials of the GENIUS Act.
Firstly, the Guilding and Establishing National Innovation for U.S.A Stablecoin GENIUS Act establishes a clear regulatory framework for the issuance of "payment stablecoin" digital assets backed by low-risk reserves like cash or treasuries and designed to maintain a fixed value attached to a national currency such as the US dollar.
1. Financial Stability: The GENIUS Act addresses financial stability risk by requiring, among other things, that stablecoins be backed by highly quality assets.
Furthermore, the GENIUS Act requires payment stablecoin issuers to hold digital quality reserve assets, safeguard them with qualified custodians, provide monthly reserve disclosure, and publish redemption policies.
Thus, the GENIUS Act includes bankruptcy provisions to ensure stablecoin holders have priority claims on reserve assets.
2. Cross-border Parity: The GENIUS Act also ensures that foreign issuers are subject to the same rules as U.S. issuers for preventing money laundering, terrorist financing, and sanction violations if they issue stablecoin holders have priority claims on reserve assets.
Also, the GENIUS Act facilitates the enforcement of the Bank Secrecy Act of 1970 (BSA) and Treasury Department's permitted issuers could have accessed the U.S.A market without equivalent obligations.
Thus, the GENIUS Act involves anti-money laundering (AML) and sanctions compliance provisions that require issuers to meet AML and sanctions compliance requirements before issuing payment stablecoins to holders in the U.S.A.
3. Regulatory Clarity: The GENIUS Act provides a clear framework for the stablecoin market in the United States to facilitate enhanced adoption of digital assets and the growth of the digital ecosystem.
This regulatory clarity also attracts stablecoin activity to the United States and increases the demand for treasuries by providing clear rules that will make payment stablecoins from U.S.-issued issuers more attractive in the global marketplace and by restricting the use of foreign entity-issued stablecoins in the U.S. market unless they are regulated by comparable regimes.
Mazi Onwuso Benjamin!!