The GENIUS Act is approaching, and stablecoin issuers are facing compliance challenges.

[Coin World] The “GENIUS Act” that the U.S. Congress is about to pass will incorporate stablecoins into the mainstream financial system. However, the act requires that stablecoin issuers hold cash, short-term U.S. Treasury securities, and other safe assets as reserves. Large issuers must also disclose audited annual financial reports, which poses a severe challenge for a certain stablecoin issuer—whose stablecoin is currently partially supported by Bitcoin and gold, and has long refused to fully disclose financial details. Former federal prosecutor Scott Armstrong, who has handled encryption cases, pointed out: “This could result in a certain company being unable to continue operating in the U.S.” Analysts believe that the GENIUS Act will force a certain company to accept audits, making it the “biggest loser.” As of now, representatives of a certain company have not responded to requests for comment.