GENIUS Act Stablecoin Rules to Be Finalized in November
The GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins) Act was signed into law over a year ago, establishing the first comprehensive regulatory framework for payment stablecoins. The act mandates that stablecoins be fully backed by U.S. dollars or short-term Treasuries at a 1:1 ratio, with monthly reserve attestations required from issuers. Large issuers (over $10 billion in circulation) must comply with federal oversight, while smaller ones can opt for state-level regulation if standards are met. The final rules under the GENIUS Act will be published by November 2024 before enforcement begins on January 18, 2027. During this period, public feedback may influence adjustments to redemption extensions and yield restrictions. The act also excludes stablecoins from SEC and CFTC jurisdiction. The upcoming rule publication is expected to impact companies like Circle (CRCL), Coinbase (COIN), and Mastercard (MA). These firms are positioned to benefit as the market adjusts under new regulatory clarity.
