# Kevin O’Leary Calls Stablecoins Crypto’s Safest Category

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/35618
Published: 2026-10-20T11:58:35.000Z
Updated: 2026-10-20T11:58:35.000Z
Section: Regulation

> When it takes effect, the GENIUS Act will require 1:1 identifiable reserves for permitted payment stablecoin issuers. It will not provide a U.S. government guarantee or federal deposit insurance.

Investor Kevin O’Leary has described stablecoins as crypto’s safest category, as U.S. law requires reserves for permitted payment stablecoin issuers and excludes a federal guarantee for those payment stablecoins.

The GENIUS Act became law July 18, 2025. It requires permitted payment stablecoin issuers to maintain identifiable reserves at least equal to their outstanding payment stablecoins, a 1:1 ratio. Eligible reserves include U.S. currency and Treasury bills, notes or bonds with maturities of 93 days or less.

The requirement applies to permitted payment stablecoin issuers. Other stablecoins may differ in backing and legal treatment.

The Act excludes U.S. government backing and guarantees for payment stablecoins, along with deposit insurance from the Federal Deposit Insurance Corp. and share insurance from the National Credit Union Administration.

The law takes effect when either deadline arrives: 18 months from enactment, or 120 days from the issuance of final implementing regulations. It is expected to take effect Jan. 18, 2027.