U.S. REGULATORS FAILED TO PUT IN PLACE THE STABLE CURRENCY RULES UNDER THE GENIUS ACT AS SCHEDULED

ON 19 JULY, UNITED STATES REGULATORS FAILED TO INTRODUCE, WITHIN ONE YEAR, THE REGULATIONS FOR THE IMPLEMENTATION OF THE STABILIZATION CURRENCY UNDER THE GENIUS ACT. AS AT 18 JULY, THE MAIN REGULATORY BODIES, SUCH AS THE MINISTRY OF FINANCE, OOCC, FDIC AND NCUA, HAD NOT YET COMPLETED FINAL RULES, AND MANY OF THE CORE SYSTEMS WERE STILL AT THE STAGE OF PROPOSALS OR CONSULTATIONS. AMONG THEM, THE CALL FOR OPINIONS ON THE RULES FOR THE IDENTIFICATION OF CUSTOMERS OF ISSUERS OF STABLE CURRENCY WILL CONTINUE UNTIL 21 AUGUST, AND THE PROPOSAL BY FDIC ON BANK SECRECY AND COMPLIANCE WITH SANCTIONS WILL BE OPEN FOR COMMENT UNTIL 4 AUGUST. RULES SUCH AS RESERVE ASSETS, CAPITAL, LIQUIDITY, TRUSTEESHIP, FORECLOSURE, RISK MANAGEMENT AND COUNTY-LEVEL REGULATORY RECOGNITION ARE ALSO NOT YET FINALIZED. THE GENIUS ACT ENTERED INTO FORCE ON 18 JULY 2025, REQUIRING THE REGULATOR TO COMPLETE THE ACCOMPANYING RULES WITHIN ONE YEAR. THE ACT HAS ESTABLISHED REQUIREMENTS FOR THE STORAGE, FORECLOSURE, DISCLOSURE, LICENSING AND SUPERVISION OF THE ISSUER OF THE PAYMENT-TYPE STABLE CURRENCY, INCLUDING THE MAINTENANCE OF 1:1 OF THE CURRENT ASSET RESERVE, THE DISCLOSURE OF THE FORECLOSURE POLICY AND MONTHLY DISCLOSURE OF THE RESERVE, AND PROHIBITS THE DIRECT PAYMENT OF INTEREST OR PROCEEDS TO THE HOLDER. REGULATORY DELAYS DO NOT AUTOMATICALLY DELAY THE ENTRY INTO FORCE OF THE LAW. THE GENIUS ACT WILL ENTER INTO FORCE NO LATER THAN 18 JANUARY 2027, IMPLYING A FURTHER REDUCTION IN THE LEAD-UP FOR REGULATORS AND POTENTIAL STABLE ISSUERS。