GENIUS Act of 2025
GENIUS Act of 2025
Plain Language Summary
# GENIUS Act of 2025 Summary **What It Does:** The GENIUS Act would create the first comprehensive federal framework for regulating "stablecoins"—digital currencies backed by traditional money or liquid assets. The bill aims to allow these cryptocurrencies to be issued and used in the U.S. by establishing clear rules about who can issue them, how they must be backed, and what oversight applies. Only certain financial institutions would be permitted to issue stablecoins: subsidiaries of traditional banks, federally-regulated fintech companies, or state-regulated issuers (for smaller operations under $10 billion). **Key Requirements:** The bill mandates that stablecoin issuers maintain full cash reserves (dollar-for-dollar backing) and publicly disclose their redemption policies.
Issuers must submit to federal or state regulation, with state oversight limited to smaller operations. The framework also includes fraud protections and gives Congress oversight authority to monitor the system. **Who It Affects:** The bill primarily impacts cryptocurrency companies wanting to issue stablecoins, traditional financial institutions, and potentially consumers using digital currencies for payments. It could accelerate mainstream adoption of cryptocurrency-based payment systems while reassuring regulators and the public about their stability. **Current Status:** The bill is currently in committee (S 919, 119th Congress), meaning it has not yet been debated or voted on by the full Senate.
CRS Official Summary
Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 or the GENIUS Act of 2025This bill establishes a regulatory framework for payment stablecoins (digital assets which an issuer must redeem for a fixed value).Under the bill, only permitted issuers may issue a payment stablecoin for use by U.S. persons, subject to certain exceptions. 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.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.The bill specifies requirements for (1) reusing reserves; (2) providing safekeeping services for stablecoins; and (3) supervisory, examination, and enforcement authority over federal-qualified issuers.The bill allows foreign issuers to offer stablecoins in the United States if the issuer has the capability to comply with lawful orders. The Department of the Treasury must establish reciprocal agreements between the United States and similarly regulated jurisdictions.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.
Latest Action
Placed on Senate Legislative Calendar under General Orders. Calendar No. 33.