>All the incentives for stablecoin issuers are to invest at least some of their reserves in riskier assets to get higher returns. No. The GENIUS Act requires

>All the incentives for stablecoin issuers are to invest at least some of their reserves in riskier assets to get higher returns. No. The GENIUS Act requires 100% reserve backing with liquid assets like U.S. dollars or short-term Treasuries and requires issuers to make monthly, public disclosures of the composition of reserves. https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-president-donald-j-trump-signs-genius-act-into-law https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-pr...