Genius Act
Genius Act 2025, an U.S. legislation to regulate stablecoins, focusing on reserves and compliance.
What is Genius Act?
The Genius Act is a proposed U.S. legislative framework aimed at regulating stablecoins, introduced to establish clear rules for issuers regarding reserve management, transparency, and compliance with anti-money laundering (AML) standards. While not yet enacted as of September 2025, it seeks to address regulatory uncertainty in the U.S. stablecoin market, ensuring consumer protection and financial stability. The act targets stablecoins like USDT and USDC, aiming to foster innovation while mitigating risks associated with their widespread adoption.
Related Terms
Tether
The company issuing USDT, a leading USD-pegged stablecoin, focused on blockchain-based financial solutions.
Convertible Preferred Stock
Preferred stock convertible into common shares, blending dividend income with equity conversion potential.
Concentrated Liquidity
A DeFi mechanism allowing liquidity providers to allocate capital within specific price ranges for higher efficiency.
Capital Inefficiency
The underutilization of provided liquidity in DeFi protocols, where most capital remains idle across unused price ranges.
Algorithmic Stablecoin
A digital asset maintaining value through supply adjustments without direct collateral.
Altcoin
Any digital asset or cryptocurrency other than Bitcoin, often developed to offer alternative features, use cases, or improvements.