Overview

• The act requires issuers to hold reserves in designated low-risk assets, submit to monthly independent audits and follow strict AML and sanctions protocols.
• Issuers must monitor and report suspicious transactions and permit asset freezes under court orders.
• The U.S. stablecoin market has expanded to roughly $260 billion in circulation, with Tether and USDC controlling over 80 percent of tokens.
• A June FATF report documented rising stablecoin use by terrorist networks, drug traffickers and cybercriminals since 2024.
• Ethics concerns have intensified around President Trump’s USD1 token after its role in a $2 billion MGX-Binance transaction.