Overview

• The Senate approved the GENIUS Act in June, mandating 100% reserve backing, transparency and audit requirements for dollar-pegged stablecoins.
• Lawmakers in the House must reconcile the GENIUS Act with the STABLE Act’s differing provisions on reserve assets and licensing.
• New York Attorney General Letitia James sent an eight-page letter urging Congress to require FDIC insurance and eliminate nonbank stablecoin issuers.
• James also proposed mandatory digital identity credentials for all transactions to strengthen law enforcement capabilities against illicit finance.
• Stablecoin issuers including Circle and Coinbase welcomed Senate passage and expect final approval to reinforce market stability and U.S. dollar strength.