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RE: LeoThread 2025-05-20 13:09

in LeoFinance5 months ago

Key Provisions of the GENIUS Act
Definition and Classification of Payment Stablecoins:
The GENIUS Act defines a payment stablecoin as a digital asset pegged to a fixed monetary value (e.g., the U.S. dollar) used for payments or settlement. These are explicitly classified as distinct from securities, commodities, or investment company products, ensuring they are regulated under a specialized framework rather than by the Securities and Exchange Commission (SEC). This prevents stablecoins from being treated as investment products and clarifies their role as payment instruments.

The bill also ensures that custodied stablecoin assets are not classified as liabilities on issuers’ financial statements, aligning with the repeal of SEC Staff Accounting Bulletin 121 (SAB 121), which had previously required such classification.