The GENIUS Act creates a regulatory framework for payment stablecoins. Only permitted issuers can issue stablecoins, with reserves required on a one-to-one basis. Issuers can choose federal or state regulation, with state limited to 10 billion dollars or less in issuance.
Latest Action
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
AI Summary
Plain-English explanation of this bill
The GENIUS Act creates a regulatory framework for payment stablecoins. Only permitted issuers can issue stablecoins, with reserves required on a one-to-one basis. Issuers can choose federal or state regulation, with state limited to 10 billion dollars or less in issuance.
Last updated: 1/5/2026
Official Summary
Congressional Research Service summary
<p><strong>Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 or the GENIUS Act of 2025 </strong></p><p>This bill establishes a regulatory framework for payment stablecoins (digital assets which an issuer must redeem for a fixed monetary value).</p><p>Under the bill, only permitted issuers may issue a payment stablecoin in the United States. Permitted issuers must be a subsidiary of an insured depository institution, a federal-qualified nonbank payment stablecoin issuer, or a state-qualified payment stablecoin issuer. Permitted issuers must be regulated by the appropriate federal or state regulator. Permitted issuers may choose federal or state regulation; however, state regulation is limited to those with a stablecoin issuance of $10 billion or less.</p><p>Permitted issuers must maintain reserves backing the stablecoin on a one-to-one basis using U.S. currency or other similarly liquid assets, as specified. Permitted issuers must also publicly disclose their redemption policy and publish monthly the details of their reserves.</p><p>The bill sets forth requirements for (1) reusing reserves; (2) providing safekeeping services for stablecoins; and (3) supervisory, examination, and enforcement authority.</p><p>In a bankruptcy insolvency proceeding involving a payment stablecoin issuer, stablecoin holders have priority over all other claims. </p><p>Under the bill, permitted payment stablecoins are not considered securities under securities law. However, permitted issuers are subject to the Bank Secrecy Act for anti-money laundering and related purposes.</p><p>The Federal Reserve must create and implement agreements with other jurisdictions that similarly regulate stablecoins for the purpose of facilitating international transactions and interoperability with U.S. dollar-denominated stablecoins issued overseas.</p>
Key Points
Main provisions of the bill
Creates regulatory framework for stablecoins
Requires one-to-one reserve backing
Allows federal or state regulation choice
Limits state regulation to 10 billion dollar issuers
Gives stablecoin holders bankruptcy priority
How This Impacts Americans
Potential effects on citizens and communities
Stablecoin issuers would face clear regulatory requirements. Consumers would have protections including reserve requirements and bankruptcy priority. The crypto industry would have regulatory clarity for dollar-backed stablecoins.
Policy Areas
Primary Policy Area
Finance and Financial Sector
Scope & Jurisdiction
Jurisdiction Level
federal
Congressional Session
119th Congress
Citation Reference
394, 119th Congress (2025). "GENIUS Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-s-394