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![Joshu_Woo Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::22346072.png) 🍄 [@Joshu_Woo](/creator/twitter/Joshu_Woo) on x 2711 followers
Created: 2025-07-19 02:49:36 UTC

I just took all of the text @RichardHeartWin provided from the genius bill and told @grok to briefly summarize the whole in laymen’s terms.

If you aren’t an attorney you’ll appreciate this version:
__________________________________________
The **GENIUS Act** (Guiding and Establishing National Innovation for U.S. Stablecoins Act), signed into law, regulates **payment stablecoins**—digital assets designed for payments, pegged to a stable value like the U.S. dollar. Here’s a concise breakdown:

X. **Purpose**: Establishes a federal framework to regulate stablecoin issuance, ensuring financial stability, consumer protection, and anti-money laundering (AML) compliance.

X. **Key Definitions**:
   - **Payment Stablecoin**: Digital asset used for payments, redeemable for a fixed monetary value, not a security or commodity.
   - **Permitted Issuers**: Only approved U.S. entities (banks, nonbanks, or state-regulated entities) can issue stablecoins.
   - **Digital Asset Service Provider**: Entities handling stablecoin transactions (e.g., exchanges, custodians).

X. **Core Requirements**:
   - **Issuance Restrictions**: Only permitted issuers can issue stablecoins; others face fines up to $1M or X years in prison.
   - **Reserves**: Issuers must hold 1:1 reserves (cash, Treasury securities, etc.) to back stablecoins, disclosed monthly.
   - **AML Compliance**: Issuers must follow Bank Secrecy Act rules, maintain AML and sanctions programs, and block illicit transactions.
   - **Consumer Protections**: Clear redemption policies, no deceptive marketing, and no interest payments on stablecoins.

X. **Regulation**:
   - **Federal Oversight**: The Comptroller of the Currency, Federal Reserve, and FDIC regulate federal issuers; states can regulate smaller issuers (<$10B in issuance).
   - **State Option**: States with comparable regimes can regulate issuers, subject to federal review.
   - **Foreign Issuers**: Must register, hold U.S. reserves, and comply with U.S. laws or face bans.

X. **Prohibitions**:
   - No tying stablecoin services to other products.
   - No misleading names implying U.S. government backing.
   - Non-financial public companies need approval to issue stablecoins.

X. **Insolvency Protections**: Stablecoin holders have priority claims in issuer bankruptcy, ensuring access to reserves.
X. **Interoperability**: Regulators may set standards for stablecoin compatibility across platforms.
X. **Enforcement**: Regulators can suspend, fine, or remove non-compliant issuers or officers.
X. **Studies & Reports**: Treasury to study non-payment stablecoins and AML innovations; annual reports on industry trends.

**Effective Date**: XX months post-enactment or XXX days after final regulations.

**In Short**: The Act creates a strict U.S. framework for stablecoin issuance, prioritizing safety, transparency, and AML compliance, while allowing state flexibility and foreign issuer access under tight rules.


XXXXXX engagements

![Engagements Line Chart](https://lunarcrush.com/gi/w:600/p:tweet::1946402012457017358/c:line.svg)

**Related Topics**
[genius act](/topic/genius-act)
[stablecoins](/topic/stablecoins)
[told](/topic/told)

[Post Link](https://x.com/Joshu_Woo/status/1946402012457017358)

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Joshu_Woo Avatar 🍄 @Joshu_Woo on x 2711 followers Created: 2025-07-19 02:49:36 UTC

I just took all of the text @RichardHeartWin provided from the genius bill and told @grok to briefly summarize the whole in laymen’s terms.

If you aren’t an attorney you’ll appreciate this version:


The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act), signed into law, regulates payment stablecoins—digital assets designed for payments, pegged to a stable value like the U.S. dollar. Here’s a concise breakdown:

X. Purpose: Establishes a federal framework to regulate stablecoin issuance, ensuring financial stability, consumer protection, and anti-money laundering (AML) compliance.

X. Key Definitions:

  • Payment Stablecoin: Digital asset used for payments, redeemable for a fixed monetary value, not a security or commodity.
  • Permitted Issuers: Only approved U.S. entities (banks, nonbanks, or state-regulated entities) can issue stablecoins.
  • Digital Asset Service Provider: Entities handling stablecoin transactions (e.g., exchanges, custodians).

X. Core Requirements:

  • Issuance Restrictions: Only permitted issuers can issue stablecoins; others face fines up to $1M or X years in prison.
  • Reserves: Issuers must hold 1:1 reserves (cash, Treasury securities, etc.) to back stablecoins, disclosed monthly.
  • AML Compliance: Issuers must follow Bank Secrecy Act rules, maintain AML and sanctions programs, and block illicit transactions.
  • Consumer Protections: Clear redemption policies, no deceptive marketing, and no interest payments on stablecoins.

X. Regulation:

  • Federal Oversight: The Comptroller of the Currency, Federal Reserve, and FDIC regulate federal issuers; states can regulate smaller issuers (<$10B in issuance).
  • State Option: States with comparable regimes can regulate issuers, subject to federal review.
  • Foreign Issuers: Must register, hold U.S. reserves, and comply with U.S. laws or face bans.

X. Prohibitions:

  • No tying stablecoin services to other products.
  • No misleading names implying U.S. government backing.
  • Non-financial public companies need approval to issue stablecoins.

X. Insolvency Protections: Stablecoin holders have priority claims in issuer bankruptcy, ensuring access to reserves. X. Interoperability: Regulators may set standards for stablecoin compatibility across platforms. X. Enforcement: Regulators can suspend, fine, or remove non-compliant issuers or officers. X. Studies & Reports: Treasury to study non-payment stablecoins and AML innovations; annual reports on industry trends.

Effective Date: XX months post-enactment or XXX days after final regulations.

In Short: The Act creates a strict U.S. framework for stablecoin issuance, prioritizing safety, transparency, and AML compliance, while allowing state flexibility and foreign issuer access under tight rules.

XXXXXX engagements

Engagements Line Chart

Related Topics genius act stablecoins told

Post Link

post/tweet::1946402012457017358
/post/tweet::1946402012457017358