GENIUS Act

The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is a 2025 United States federal law that creates a regulatory framework for payment stablecoins.

What is the GENIUS Act?

The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is a 2025 United States federal law that creates a regulatory framework for payment stablecoins. It establishes rules for how stablecoins can be issued, backed, audited, and supervised within the U.S. financial system.

What does the GENIUS Act regulate?

The Act regulates the issuance of payment stablecoins by requiring that only permitted payment stablecoin issuers (PPSIs) may issue them. These issuers must meet strict requirements for licensing, reserves, disclosures, and risk management. The law also sets standards for anti-money-laundering compliance, consumer protection, and financial oversight.

How are stablecoins used under the GENIUS Act?

Stablecoins issued under the Act must maintain 1:1 backing with U.S. dollars or other low-risk assets. Issuers must conduct regular audits, publish reserve information, and comply with federal and state regulatory obligations. Digital asset platforms offering stablecoins to U.S. users must ensure the stablecoins come from approved issuers. The law also establishes procedures for handling stablecoin assets if an issuer becomes insolvent, giving holders priority claims.

When was the GENIUS Act passed and how did it develop?

The Act moved through the U.S. legislative process in 2025. It was introduced in early 2025, passed by the Senate in June, passed by the House in July, and signed into law later that month. It became the first comprehensive U.S. federal law specifically focused on payment stablecoins.

What are noteworthy examples of the GENIUS Act?

  • It establishes clear federal rules for stablecoin issuance in the United States.
  • It creates consistent standards for reserve backing, disclosures, and licensing.
  • It introduces consumer protections by prioritizing stablecoin holders during insolvency.
  • It influences how exchanges and payment platforms list and support stablecoins.
  • It provides regulatory clarity that may encourage institutional use of compliant stablecoins.