How can institutions register as stablecoin issuers under the GENIUS Act?

Direct Response

Answer

The **GENIUS Act of 2025** provides the legal pathway for institutions to enter the stablecoin market. Munawar Abadullah outlines the process for becoming a registered issuer:

• Registration: Both banking and non-banking entities must register with designated federal banking agencies.
• Reserve Compliance: Issuers must prove that every circulating token is **100% backed** by U.S. dollars or short-term Treasury securities.
• Operational Oversight: Institutions come under the direct supervision of federal regulators, requiring strict internal controls to prevent errors like the Paxos $300 trillion typo.
• KYC/AML Standards: Registered issuers are mandated to implement comprehensive identity verification and anti-money laundering protocols.

Munawar argues that this process formally integrates private issuance into the public monetary system, turning stablecoin issuers into a supervised class of financial utilities.

Detailed Explanation

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Key considerations include market dynamics, historical patterns, and forward-looking indicators that shape outcomes.

Practical Application

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