Key takeaways
- The US GENIUS Act and the EU's MiCA both require stablecoins to be fully backed by safe, liquid reserves and redeemable at par.
- They differ on who may issue, which assets count as reserves, how much must sit in bank deposits, and how reserves are reported and certified.
- The GENIUS Act requires monthly published reserve reports examined by an accounting firm and certified by the CEO and CFO.
- MiCA requires e-money token issuers to hold at least 30% of funds received as bank deposits, rising to 60% for significant tokens.
- Issuers active in both markets can run one daily reconciliation and apply each regime's tests to it.
Two frameworks, one purpose
The United States and the European Union now both have comprehensive stablecoin laws. The GENIUS Act, signed on 18 July 2025, governs payment stablecoins in the US and takes effect on the earlier of 18 January 2027 or 120 days after final implementing regulations. MiCA, the EU's Markets in Crypto-Assets Regulation, has applied to stablecoins since mid-2024. Both aim to make sure that a holder can always redeem a token for its face value, because the issuer holds enough safe assets to pay.
For issuers operating in both markets, or planning to, the useful question is where the rules agree and where they differ. The table summarises the main points; our guides to the GENIUS Act monthly reserve report and MiCA reserve requirements cover each in depth.
| Point | GENIUS Act (US) | MiCA (EU) |
|---|---|---|
| Token types | Payment stablecoins redeemable for a fixed amount | E-money tokens (one currency) and asset-referenced tokens (other assets) |
| Who may issue | Permitted payment stablecoin issuers under federal or qualifying state regimes | EMTs: credit institutions and e-money institutions; ARTs: authorised issuers |
| Backing | At least one to one in eligible reserve assets | Fully backed; EMT funds safeguarded with deposit minimums |
| Reserve assets | Cash, deposits, short-dated Treasuries, certain repos and money market funds | Bank deposits plus secure, low-risk, highly liquid assets in the same currency |
| Deposit minimum | No fixed percentage | At least 30% of EMT funds received, 60% for significant EMTs |
| Redemption | At par, under published redemption policies | At par, at any time, for EMT holders |
| Reporting | Monthly published reserve report examined by a registered accounting firm | Supervisory reporting and disclosure under MiCA and EBA standards |
| Executive accountability | Monthly CEO and CFO certification, with criminal liability for knowingly false statements | Management body responsibility under MiCA governance rules |
Where the differences bite
Three differences matter most in practice. First, deposit concentration. MiCA's minimum share of bank deposits for e-money tokens shapes how an EU reserve is built, while the GENIUS Act allows a reserve weighted more heavily to short-dated Treasuries. A single global reserve may not satisfy both without being split or adjusted. Second, reporting rhythm and accountability. The GENIUS Act's monthly examined report with personal executive certification is a distinctive feature, and issuers must build the monthly process and evidence to support it. Third, eligibility of issuers. A US issuer cannot offer an e-money token in the EU without an EU credit institution or e-money institution behind it, and an EU issuer must meet US requirements to offer payment stablecoins in the US.
Timing is a fourth. MiCA's stablecoin rules already apply, while the GENIUS Act's obligations start on its effective date, with detailed rules still being finalised by federal regulators. Issuers planning for both should build to the stricter of the two requirements on each point, so that the US regime does not force a redesign once it takes effect.
One process, two sets of tests
The daily work is the same under both laws: count tokens outstanding across every network, reconcile them to the issuance ledger, confirm reserves from bank and custody statements, and test coverage. Our guide to stablecoin reserve reconciliation sets out the process. What differs is the test applied to the result. For the US, coverage, eligible asset categories and the monthly report. For the EU, coverage, deposit share, currency matching and the significance thresholds.
Issuers should keep separate reserve pools where the rules require it, reconcile each daily, and report each under its own regime. Hong Kong adds a third set of tests for issuers active there; see the Hong Kong Stablecoins Ordinance.
Safeheld runs the daily reserve reconciliation once and applies GENIUS Act, MiCA, NYDFS and Hong Kong tests to the result. See proof of reserves vs attestation.
Frequently asked questions
What is the main difference between the GENIUS Act and MiCA?
Both require full backing and redemption at par, but they differ on who may issue, eligible reserve assets, deposit minimums, and reporting and certification.
Does MiCA require stablecoin reserves in bank deposits?
For e-money tokens, at least 30% of funds received must be deposited at credit institutions, or 60% for significant tokens.
Does the GENIUS Act require executive certification?
Yes. The CEO and CFO must certify the monthly reserve report, with criminal liability for knowingly false certification.
Can one reserve satisfy both regimes?
Not always. Differences in deposit minimums and eligible assets may require separate or adjusted reserve pools.
References
- GENIUS Act, S.1582, 119th Congress (Public Law 119-27)
- Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA)
About Safeheld
Safeheld reconciles client money every day, resolves every difference and prepares every regulatory return for sign-off, for regulated firms in the United States, the United Kingdom, the European Union, Canada, Australia, Singapore and Hong Kong. To discuss your operations, contact us at safeheld.com/contact.
This article is for general information and does not constitute legal or regulatory advice.