A cryptocurrency designed to maintain a stable value, usually by being pegged to a fiat currency such as the US dollar.
Most cryptocurrencies swing widely in price, which makes them awkward for payments and accounting. Stablecoins aim to fix this by tracking a reference asset. Fiat-backed stablecoins hold reserves such as cash and short-term government bonds to back each token. Crypto-backed stablecoins use other cryptocurrencies as overcollateralized backing, and algorithmic stablecoins try to maintain their peg through automated supply adjustments.
Stablecoins are widely used for trading on crypto exchanges, cross-border transfers, and in DeFi. Their reliability depends on the quality and transparency of reserves and the issuer's ability to honor redemptions. Some algorithmic designs have collapsed, losing their peg entirely. Regulators in several jurisdictions have introduced or proposed rules covering reserves, audits, and issuer licensing.
A digital form of a country's official currency, known as a CBDC, issued and backed directly by its central bank.
CryptocurrencyA digital currency secured by cryptography and typically recorded on a decentralized blockchain rather than issued by a central bank.
DeFiDecentralized Finance: financial services such as lending, borrowing, and trading built on blockchains using smart contracts.
LiquidityHow quickly and easily an asset can be bought or sold, or converted into cash, without significantly affecting its price.
A plain-English summary of the GENIUS Act: who can issue stablecoins, what reserves and reports are required, who supervises issuers, when the rules start and what it all means for businesses.
A plain-English map of who regulates crypto in the US, from the SEC and CFTC to Treasury, bank regulators and states, plus where the GENIUS and CLARITY Acts stand.
Who has to run KYC and AML checks in crypto, what FinCEN and OFAC expect, how the Travel Rule works, and what a merchant accepting crypto actually needs to do.