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![timowlee Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::1072269818370420736.png) Timo Lee [@timowlee](/creator/twitter/timowlee) on x 1715 followers
Created: 2025-07-19 10:10:19 UTC

TLDR: What Does the GENIUS Act Do?

Establishes legal framework: 

It defines who can issue stablecoins and what qualifies as one—tagging them as distinct from other crypto assets.

Reserve requirements: 

Issuers must maintain XXX% reserves in U.S. dollars or short-term Treasuries, with monthly public disclosures and annual audits (particularly for those over $XX billion market cap).

Consumer protections and insolvency rules: 

Stronger safeguards ensure stablecoin holders have priority in bankruptcies, plus anti‑money laundering provisions and powers for regulators to freeze illicit activity.

Federal and state alignment: 

The law aligns U.S. and state regulations to reduce loopholes.

Restricts profiteering by Congress members: 

Congress and their families cannot profit from stablecoin issuance—though this exemption does not apply to the president or his family, drawing criticism about a potential conflict of interest


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**Related Topics**
[market cap](/topic/market-cap)
[$50billion](/topic/$50billion)
[stablecoins](/topic/stablecoins)

[Post Link](https://x.com/timowlee/status/1946512920289907199)