# kaal:claim:5454054-004

**Claim.** The GENIUS Act of 2025 is what makes merchant-issued stablecoins viable, because it supplies the enabling conditions of 1:1 reserve backing, audits, and AML compliance.

**Type.** condition  **Support.** evidenced

**Holds when.**

- United States
- after July 2025

**Source quote.**

> the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act of 2025, signed into law in July 2025, enables merchant-issued stablecoins by mandating 1:1 reserve backing, audits, and AML compliance.

**From.** Wulf A. Kaal, *Liquid Equity Rewards* (2025), Regulatory Enablers and Implications, page 7

**Cite as.** Wulf A. Kaal, Liquid Equity Rewards (2025). SSRN: https://ssrn.com/abstract=5454054

**Verify.** sha256 of source PDF `9f53a865e6f0e5424640779df8f9b50923cd7d05649301dd4cc727144749b6e6` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Kaal%20-%202025%20-%20Liquid%20Equity%20Rewards.pdf

**Topics.** tokenomics, compliance

**Keywords.** genius-act, stablecoins, reserve-requirements, aml, regulation

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