Search
Results for “Stablecoin reserves vs Proof of reserves”
Stablecoin reserves
Stablecoin reserves are the assets an issuer holds to back the coins it has issued, so each can be redeemed for a fixed amount. In the US, the GENIUS Act of July 2025 requires a permitted payment stablecoin issuer to hold identifiable reserves on an at least 1-to-1 basis, from a fixed list of assets.
What it means for you. In the US, issuers under the Act must publish their reserve composition monthly, have it examined monthly by a registered public accounting firm, and disclose redemption procedures and all fees; they cannot pay holders interest or yield just for holding the coin. The Act takes effect 18 months after enactment or 120 days after final regulations, whichever is earlier.
Source: GENIUS Act, Public Law 119-27 (govinfo compilation) · checked 4 October 2026
Proof of reserves
Proof of reserves is a voluntary report in which a crypto platform or token issuer tries to show that, at a given moment, it holds enough assets to cover what it holds for customers. In the US, the SEC's investor office says such reports are not audits and may give no meaningful assurance.
What it means for you. A proof of reserves is a snapshot: it may not show what happened between snapshots, such as lending out customer assets, may not reveal the platform's full liabilities or where you stand in line if it fails, and does not stop assets moving right after. The platform chooses which wallets are examined, the level of assurance and who does the check.
Sources: SEC investor alert: Exercise Caution with Crypto Asset Securities, SEC investor bulletin: Exercise Caution With Alternatives to Financial Statement Audits · checked 4 October 2026