Summary
- It was reported that the possibility of applying the Genius Act has been raised in the criminal trial against Do Kwon, co-founder of Terraform Labs.
- The Genius Act reportedly includes strengthened requirements such as licensing for stablecoin issuers, 100% reserve maintenance, external audit obligations, and regulations for foreign issuers.
- Depending on whether the bill is passed, the scope of Do Kwon's legal responsibility and the future impact on the stablecoin market could vary.
On the 25th (local time), Cointelegraph, a U.S. media outlet specializing in virtual assets (cryptocurrencies), reported citing local media Inner City Press that Do Kwon, co-founder of Terraform Labs, may face amended charges during his ongoing criminal trial at the U.S. District Court for the Southern District of New York.
According to the outlet, Judge Paul Engelmayer, who is overseeing the trial, stated during the pretrial conference held that day, "I am aware of the Genius Act," indicating that the proposed bill could impact the judgment on Do Kwon's securities fraud charges.
The Genius Act is a bill that imposes requirements on stablecoin issuers, such as mandatory licensing, maintaining 100% reserves, annual external audits for issuers with a market cap exceeding $5 billion, and regulations on foreign issuers.
It specifically includes legal definitions and criteria for algorithmic stablecoins like TerraUSD (UST).
Depending on whether the bill passes, the scope of Do Kwon's legal liability could change.
Meanwhile, after being arrested in Montenegro on passport forgery charges in 2023, Do Kwon was extradited to the United States in December last year. He is currently facing nine felony charges in the U.S., including securities fraud, commodities fraud, market manipulation, and money laundering.
He claims innocence on all charges and is awaiting trial in custody without bail. According to the local court, Do Kwon's criminal trial is scheduled to begin in January 2026.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
