Stablecoin Reserve Requirements — Global

Related Jurisdictions

Related Frameworks

Key Facts

• **Stable Digital Assets:** These are explicitly addressed in the law. Article 3.m defines a "stable digital asset" as a digital asset that aims to maintain a stable value by referencing the value of another asset or a basket of assets, including fiat currencies, commodities, or other crypto-assets. (AD)
• **Relationship to E-money/Payment Tokens/Securities:** (AD)
• The law creates a *specific category* for stable digital assets. However, depending on their design and underlying assets, stable digital assets *may also* fall under existing financial regulations if they meet the criteria. (AD)
• If a stable digital asset has rights or features that make it an investment contract, security, or otherwise within the federal securities laws, it may be regulated under securities law; however, payment stablecoins issued in compliance with the GENIUS Act are generally not securities. (AD)
• If it functions purely as a **means of payment** without meeting the strict definition of e-money, it would still be subject to the general provisions of Law 8/2023 regarding stable digital assets and potentially payment services regulations. (AD)
• Law 8/2023 aims to provide a specific framework *for* digital assets, but it also clarifies that if a digital asset falls within the scope of existing financial legislation (e.g., banking, insurance, investment services), those specific laws will also apply. (AD)
• **Full Backing:** The law generally requires stable digital assets to be fully backed by the underlying reserve assets they purport to reference. This backing must be sufficient to cover all issued stable digital assets. (AD)
• **Segregation:** Reserve assets must be segregated from the issuer's operating funds and managed in a way that minimizes risk of loss. (AD)
• **Prudent Management:** Issuers must implement robust governance and risk management frameworks for managing the reserve assets, including policies for their safekeeping, investment (if permitted), and redemption. (AD)
• **Transparency and Audit:** Issuers are required to provide regular, transparent reports on the composition and value of their reserve assets, and these reports may be subject to independent audit. (AD)