S. 1582
GENIUS Act
Sponsor: Bill Hagerty
5 cosponsors
Official summary
Written by the Congressional Research Service.
Guiding and Establishing National Innovation for U.S. Stablecoins Act or the GENIUS Act
This act establishes a regulatory framework for payment stablecoins (digital assets which an issuer must redeem for a fixed value).
Under the act, only permitted issuers may issue a payment stablecoin for use by U.S. persons, subject to certain exceptions and safe harbors. 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 act specifies requirements for (1) reusing reserves; (2) providing safekeeping services for stablecoins; and (3) supervisory, examination, and enforcement authority over federal-qualified issuers.
The act allows foreign issuers of stablecoins to offer, sell, or make available in the United States stablecoins using digital asset service providers, subject to requirements, including a determination by the Department of Treasury that they are subject to comparable foreign regulations.
Under the act, permitted payment stablecoins are not considered securities or commodities under law. However, permitted issuers are subject to the Bank Secrecy Act for anti-money laundering and related purposes.
(Sec. 3) This section establishes that only payment stablecoin issuers permitted under this act are allowed to issue a payment stablecoin in the United States. Knowing violations of this requirement shall be subject to a fine of up to $1 million for each violation, up to 5 years imprisonment, or both. Treasury may issue regulations establishing limited safe harbors from this requirement that are consistent with the act's purposes, limited in scope, and apply to a de minimus volume of transactions.
Three years after the date of enactment, digital asset service providers are prohibited from offering or selling stablecoins that are not issued by permitted issuers. Providers are also prohibited from offering, selling, or otherwise making available in the United States a foreign-issued payment stablecoin, unless it complies with requirements provided in section 18 of the act.
(Sec. 4) This section establishes requirements for permitted issuers. Issuers must maintain reserves on a one-to-one basis. Reserves must be comprised of
- U.S. coins and currency;
- demand deposits or shares at an insured depository institution;
- certain Treasury acts, notes, or bonds;
- money received under certain repurchase agreements or reverse repurchase agreements;
- certain investment company securities and money market funds invested in certain approved assets on this list;
- similarly liquid federal assets approved by regulators; or
- certain listed reserves in tokenized forms.
Issuers must comply with redemption requirements, such as establishing timely redemption procedures and disclosing such procedures and associated fees. Issuers must also report on the monthly composition of the issuer's reserves. These reports must be examined by a registered public accounting firm and certified by the chief executive officer and chief financial officer of the issuer.
The section prohibits the rehypothecation, or reuse, of reserves with limited exceptions.
Primary federal payment stablecoin regulators (federal regulators) and state payment stablecoin regulators (state regulators), where applicable, must issue regulations to implement capital requirements, liquidity reserve standards, reserve asset diversification standards, and risk management standards.
Issuers are subject to the anti-money laundering and counterterrorism requirements that are applicable to financial institutions.
The section sets forth requirements regarding activities of a permitted issuer, including by prohibiting issuers from providing services on the condition that a customer obtains an additional paid product or service from the issuer or a subsidiary.
Large issuers (those with more than $50 billion in consolidated total outstanding issuance) must publish an audited annual financial statement in accordance with generally accepted accounting principles.
The section prohibits a public nonfinancial services company from issuing payment stablecoins unless the company obtains unanimous approval from the Stablecoin Certification Review Committee.
A state qualified payment stablecoin issuer with a consolidated total outstanding issuance of not more than $10 billion may opt for state regulation if such regulation is substantially similar to the federal regulatory framework under this act. If the issuance exceeds that amount, the issuer must transition to federal regulation, receive a waiver from the federal regulator to remain under state regulation, or stop issuing stablecoins until the issuance is under the threshold.
(Sec. 5) This section establishes requirements for stablecoins issued by subsidiaries of insured depository institutions and certain entities chartered by the Office of the Comptroller of the Currency (OCC) to issue payment stablecoins. Federal regulators must establish an application process and a supervision framework for such entities.
The section sets forth requirements for the review of applications, explanations for denials, and an appeals process.
(Sec. 6) This section sets forth supervision, examination, and enforcement requirements for payment stablecoin issuers under federal supervision. The provisions include reporting on financial conditions, risk management, compliance with the act, and compliance with sanctions and anti-money laundering requirements. The section specifies that payment stablecoin issuers with less than $10 billion in consolidated total outstanding issuance are subject to federal supervision if they are not state qualified payment stablecoin issuers.
The section establishes civil penalties for violations of this act that are committed by those subject to federal supervision.
(Sec. 7) This section establishes state regulatory authority over issuers that qualify for and elect state regulation. The Federal Reserve Board may exercise enforcement authority over state issuers in unusual and exigent circumstances. The OCC must exercise enforcement authority over nonbank state issuers in these circumstances.
(Sec. 8) This section requires foreign issuers to comply with the terms of lawful orders to be allowed to offer, sell, or make available for trading a payment stablecoin in the United States. The section sets forth enforcement and appeal provisions. Treasury may waive the prohibition against the secondary trading of foreign payment stablecoins in the United States from noncompliant foreign issuers on a case-by-case basis if certain criteria are met.
(Sec. 9) Treasury must seek public comment regarding methods, techniques, or strategies for financial institutions to detect illicit activities involving digital assets and perform research and risk assessments on such methods, techniques, or strategies. Treasury must report their legislative recommendations to Congress and the Financial Crimes Enforcement Network must issue rules based on the results.
(Sec. 10) This section establishes requirements for custodial or safekeeping services for payment stablecoin reserves, collateral, and the private keys used to issue stablecoins. Among other requirements, such property must be separately accounted for and not comingled with other assets of the custodian.
(Sec. 11) This section addresses the treatment of payment stablecoins and stablecoin issuers in bankruptcy and insolvency proceedings, including their claim priority, conditions for an automatic stay, and the treatment of reserves as property of the estate.
Federal regulators must also report on topics regarding potential insolvency proceedings of issuers.
(Sec. 12) Federal regulators may, if determined necessary after an assessment, prescribe technical standards for issuers to promote compatibility and interoperability with other issuers and the broader digital finance system.
(Sec. 13) This section requires regulators to issue regulations to carry out the act, with federal and state regulators and Treasury coordinating as appropriate.
(Sec. 14) This section requires Treasury to study and report on nonpayment stablecoins, including endogenously collateralized payment stablecoins (a digital asset the originator of which has represented will be converted, redeemed, or repurchased for a fixed amount of monetary value and that relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price).
(Sec. 15) This section requires federal regulators to annually report on payment stablecoin activity trends, the number of payment stablecoin issuer applicants, and the potential financial stability risks to the safety and soundness of the broader financial system posed by payment stablecoin activities.
(Sec. 16) This section defines authorities related to the act, such as by providing that the act does not limit the authority of a depository institution, credit union, national bank, or trust company to issue digital assets to represent deposits or shares.
Federal financial regulators may not require a financial institution to include certain digital assets held in its custody as a liability on financial statements or balance sheets.
(Sec. 17) This section establishes that payment stablecoins issued by permitted issuers are not securities or commodities under federal law.
(Sec. 18) This section provides an exception to the act's prohibition on foreign-issued payment stablecoins. For the exception to apply, foreign issuers must be subject to regulation and supervision by a foreign country that is comparable to the requirements under this act, as determined by Treasury. The foreign issuer must also be registered with the OCC, hold sufficient reserves in a U.S. financial institution (subject to exceptions), and the country where the issuer is domiciled must not be subject to U.S. sanctions.
The section sets forth requirements for Treasury's determination as to whether a foreign country has comparable regulatory and supervisory requirements, including the process of requesting a determination, the deadline for Treasury to render a decision, and the process by which Treasury may rescind a previous determination.
The section also sets forth OCC registration requirements.
Treasury may implement reciprocal or bilateral agreements between the United States and jurisdictions with comparable regulatory requirements.
(Sec. 19) This section requires certain federal employees to disclose holdings over $5,000 of permitted payment stablecoins as part of required financial disclosures.
(Sec. 20) The act takes effect on the earlier of (1) 18 months after the date of enactment, or (2) 120 days after federal regulators issue final regulations implementing the act.
Text of the bill
Where this section came from
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May 5, 2025 · Placed on Calendar Senate
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Jun 17, 2025 · Engrossed in Senate S.Amdt. 2307: In the nature of a substitute. Official page › On the Cloture Motion — Cloture Motion Rejected, 48–49 · Roll Call 240On Cloture on the Motion to Proceed — Cloture on the Motion to Proceed Agreed to, 66–32 · Roll Call 262On the Motion to Proceed — Motion to Proceed Agreed to, 69–31 · Roll Call 263On the Cloture Motion — Cloture Motion Agreed to, 68–30 · Roll Call 305On the Motion to Table — Motion to Table Failed, 45–52 · Roll Call 309On the Motion — Motion Agreed to, 64–33 · Roll Call 310On the Amendment — Amendment Agreed to, 67–30 · Roll Call 311On the Cloture Motion — Cloture Motion Agreed to, 67–27 · Roll Call 312On Passage of the Bill — Bill Passed, 68–30 · Roll Call 318
… 21 unchanged passages …
(iv) developing, operating, or engaging in the business of validating transactions or operating a distributed ledger
node
; or
… 43 unchanged passages …
(23) Permitted payment stablecoin issuer. The term permitted payment stablecoin issuer means a person formed in the United States that
— (A)
is— (
i
A
) a subsidiary of an insured depository institution that has been approved to issue payment stablecoins under section 5; (
ii
B
) a Federal qualified payment stablecoin issuer; or (
iii
C
) a State qualified payment stablecoin issuer
; and (B) does not offer a payment of yield or interest on its issued payment stablecoin
.
… 7 unchanged passages …
(27)
Stablecoin Certification Review Committee. The term Stablecoin Certification Review Committee means the committee of that name and having the functions as provided in this Act— (A) of which— (i) the Secretary of the Treasury shall serve as Chair; and (ii) the Chair of the Board (or the Vice Chair for Supervision, as delegated by the Chair of the Board), and the Chair of the Corporation shall serve as members; and (B) which, unless otherwise specified in this Act, shall act by 2/3 vote of its members at any meeting called by the Chair or by unanimous written consent. (28)
State. The term State means each of the several States of the United States, the District of Columbia, and each territory of the United States. (
28
29
) State chartered depository institution. The term State chartered depository institution has the meaning given the term State depository institution in section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)). (
29
30
) State payment stablecoin regulator. The term State payment stablecoin regulator means a State agency that has primary regulatory and supervisory authority in such State over entities that issue payment stablecoins. (
30
31
) State qualified payment stablecoin issuer. The term State qualified payment stablecoin issuer means an entity that—
… 2 unchanged passages …
(
31
32
) Subsidiary. The term subsidiary has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (
32
33
) Subsidiary of an insured credit union. With respect to an insured credit union, the term subsidiary of an insured credit union means—
… 3 unchanged passages …
In this Act:
(1) Appropriate Federal banking agency. The term appropriate Federal banking agency has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(2) Bank Secrecy Act. The term Bank Secrecy Act means—
(A) section 21 of the Federal Deposit Insurance Act (12 U.S.C. 1829b);
(B) chapter 2 of title I of Public Law 91–508 (12 U.S.C. 1951 et seq.); and
(C) subchapter II of chapter 53 of title 31, United States Code.
(3) Board. The term Board means the Board of Governors of the Federal Reserve System.
(4) Comptroller. The term Comptroller means the Office of the Comptroller of the Currency.
(5) Corporation. The term Corporation means the Federal Deposit Insurance Corporation.
(6) Digital asset. The term digital asset means any digital representation of value that is recorded on a cryptographically secured distributed ledger.
(7) Digital asset service provider. The term digital asset service provider—
(A) means a person that, for compensation or profit, engages in the business in the United States (including on behalf of customers or users in the United States) of—
(i) exchanging digital assets for monetary value;
(ii) exchanging digital assets for other digital assets;
(iii) transferring digital assets to a third party;
(iv) acting as a digital asset custodian; or
(v) participating in financial services relating to digital asset issuance; and
(B) does not include—
(i) a distributed ledger protocol;
(ii) developing, operating, or engaging in the business of developing distributed ledger protocols or self-custodial software interfaces;
(iii) an immutable and self-custodial software interface;
(iv) developing, operating, or engaging in the business of validating transactions or operating a distributed ledger; or
(v) participating in a liquidity pool or other similar mechanism for the provisioning of liquidity for peer-to-peer transactions.
(8) Distributed ledger. The term distributed ledger means technology in which data is shared across a network that creates a public digital ledger of verified transactions or information among network participants and cryptography is used to link the data to maintain the integrity of the public ledger and execute other functions.
(9) Distributed ledger protocol. The term distributed ledger protocol means publicly available and accessible executable software deployed to a distributed ledger, including smart contracts or networks of smart contracts.
(10) Federal branch. The term Federal branch has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(11) Federal qualified payment stablecoin issuer. The term Federal qualified payment stablecoin issuer means—
(A) a nonbank entity, other than a State qualified payment stablecoin issuer, approved by the Comptroller, pursuant to section 5, to issue payment stablecoins;
(B) an uninsured national bank—
(i) that is chartered by the Comptroller, pursuant to title LXII of the Revised Statutes; and
(ii) that is approved by the Comptroller, pursuant to section 5, to issue payment stablecoins; and
(C) a Federal branch that is approved by the Comptroller, pursuant to section 5, to issue payment stablecoins.
(12) Foreign payment stablecoin issuer. The term foreign payment stablecoin issuer means an issuer of a payment stablecoin that is—
(A) organized under the laws of or domiciled in a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands; and
(B) not a permitted payment stablecoin issuer.
(13) Institution-affiliated party. With respect to a permitted payment stablecoin issuer, the term institution-affiliated party means any director, officer, employee, or controlling stockholder of the permitted payment stablecoin issuer.
(14) Insured credit union. The term insured credit union has the meaning given that term in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
(15) Insured depository institution. The term insured depository institution means—
(A) an insured depository institution, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813); and
(B) an insured credit union.
(16) Lawful order. The term lawful order means any final and valid writ, process, order, rule, decree, command, or other requirement issued or promulgated under Federal law, issued by a court of competent jurisdiction or by an authorized Federal agency pursuant to its statutory authority, that—
(A) requires a person to seize, freeze, burn, or prevent the transfer of payment stablecoins issued by the person;
(B) specifies the payment stablecoins or accounts subject to blocking with reasonable particularity; and
(C) is subject to judicial or administrative review or appeal as provided by law.
(17) Monetary value. The term monetary value means a national currency or deposit (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) denominated in a national currency.
(18) Money. The term money—
(A) means a medium of exchange currently authorized or adopted by a domestic or foreign government; and
(B) includes a monetary unit of account established by an intergovernmental organization or by agreement between 2 or more countries.
(19) National currency. The term national currency means each of the following:
(A) A Federal Reserve note (as the term is used in the first undesignated paragraph of section 16 of the Federal Reserve Act (12 U.S.C. 411)).
(B) Money standing to the credit of an account with a Federal Reserve Bank.
(C) Money issued by a foreign central bank.
(D) Money issued by an intergovernmental organization pursuant to an agreement by 2 or more governments.
(20) Nonbank entity. The term nonbank entity means a person that is not a depository institution or subsidiary of a depository institution.
(21) Offer. The term offer means to make available for purchase, sale, or exchange.
(22) Payment stablecoin. The term payment stablecoin—
(A) means a digital asset—
(i) that is, or is designed to be, used as a means of payment or settlement; and
(ii) the issuer of which—
(I) is obligated to convert, redeem, or repurchase for a fixed amount of monetary value, not including a digital asset denominated in a fixed amount of monetary value; and
(II) represents that such issuer will maintain, or create the reasonable expectation that it will maintain, a stable value relative to the value of a fixed amount of monetary value; and
(B) does not include a digital asset that—
(i) is a national currency;
(ii) is a deposit (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), including a deposit recorded using distributed ledger technology; or
(iii) is a security, as defined in section 2 of the Securities Act of 1933 (15 U.S.C. 77b), section 3 of the Securities Exchange Act of 1934 (15 U.S.C. 78c), or section 2 of the Investment Company Act of 1940 (15 U.S.C. 80a–2), except that, for the avoidance of doubt, no bond, note, evidence of indebtedness, or investment contract that was issued by a permitted payment stablecoin issuer shall qualify as a security solely by virtue of its satisfying the conditions described in subparagraph (A), consistent with section 17 of this Act.
(23) Permitted payment stablecoin issuer. The term permitted payment stablecoin issuer means a person formed in the United States that is—
(A) a subsidiary of an insured depository institution that has been approved to issue payment stablecoins under section 5;
(B) a Federal qualified payment stablecoin issuer; or
(C) a State qualified payment stablecoin issuer.
(24) Person. The term person means an individual, partnership, company, corporation, association, trust, estate, cooperative organization, or other business entity, incorporated or unincorporated.
(25) Primary Federal payment stablecoin regulator. The term primary Federal payment stablecoin regulator means—
(A) with respect to a subsidiary of an insured depository institution (other than an insured credit union), the appropriate Federal banking agency of such insured depository institution;
(B) with respect to an insured credit union or a subsidiary of an insured credit union, the National Credit Union Administration;
(C) with respect to a State chartered depository institution not specified under subparagraph (A), the Corporation, the Comptroller, or the Board; and
(D) with respect to a Federal qualified payment stablecoin issuer, the Comptroller.
(26) Registered public accounting firm. The term registered public accounting firm has the meaning given that term under section 2 of the Sarbanes-Oxley Act of 2002 (15 U.S.C. 7201).
(27) Stablecoin Certification Review Committee. The term Stablecoin Certification Review Committee means the committee of that name and having the functions as provided in this Act—
(A) of which—
(i) the Secretary of the Treasury shall serve as Chair; and
(ii) the Chair of the Board (or the Vice Chair for Supervision, as delegated by the Chair of the Board), and the Chair of the Corporation shall serve as members; and
(B) which, unless otherwise specified in this Act, shall act by 2/3 vote of its members at any meeting called by the Chair or by unanimous written consent.
(28) State. The term State means each of the several States of the United States, the District of Columbia, and each territory of the United States.
(29) State chartered depository institution. The term State chartered depository institution has the meaning given the term State depository institution in section 3(c) of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)).
(30) State payment stablecoin regulator. The term State payment stablecoin regulator means a State agency that has primary regulatory and supervisory authority in such State over entities that issue payment stablecoins.
(31) State qualified payment stablecoin issuer. The term State qualified payment stablecoin issuer means an entity that—
(A) is legally established under the laws of a State and approved to issue payment stablecoins by a State payment stablecoin regulator; and
(B) is not an uninsured national bank chartered by the Comptroller pursuant to title LXII of the Revised Statutes, a Federal branch, an insured depository institution, or a subsidiary of such national bank, Federal branch, or insured depository institution.
(32) Subsidiary. The term subsidiary has the meaning given that term in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813).
(33) Subsidiary of an insured credit union. With respect to an insured credit union, the term subsidiary of an insured credit union means—
(A) an organization providing services to the insured credit union that are associated with the routine operations of credit unions, as described in section 107(7)(I) of the Federal Credit Union Act (12 U.S.C. 1757(7)(I));
(B) a credit union service organization, as such term is used under part 712 of title 12, Code of Federal Regulations, with respect to which the insured credit union has an ownership interest or to which the insured credit union has extended a loan; and
(C) a subsidiary of a State chartered insured credit union authorized under State law.