GENIUS Act imposes anti-money-laundering compliance checks and restricts reserve investments to safe assets

Quotes that support claims

Stablecoin issuers may also be prohibited from using reserves for anything other than redemption and certain safe investments — such as low‑risk Treasury repos — to guard against shadow‑banking risks.

The GENIUS Act seeks to create a regulatory framework for dollar‑pegged payment stablecoins, mandating full 1:1 reserve backing, licenses at the federal or state level, Anti-Money Laundering compliance checks and sufficient consumer protections.