From Law to Supervisory Practice

Stablecoins are integral to digital payment infrastructure but may contribute to financial instability due to opaque reserves, operational risks, and regulatory arbitrage. This chapter examines how the US GENIUS Act (2025) can establish an operationally enforceable regime that ensures parity maintenance, liquidity, and transparency. A methodological approach is adopted, integrating comparative legal analysis (GENIUS, Commonwealth, MiCA, and UK) with regulatory engineering. The resulting practice-oriented toolkit aims to transform stablecoins from speculative digital assets into balance sheet- and audit-compliant payment instruments. The analysis underscores that effective stablecoin regulation requires coordinated integration of law, governance, and technology. This chapter targets regulators, supervisory authorities, and policy analysts.