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
… 12 unchanged passages …
(d) State-chartered depository institutions.
A
(1)
State-chartered
In general. A
depository institution chartered under the banking laws of a State
,
shall
that
not
has
be
a
required
subsidiary
to
that
obtain
is
a
charter,
permitted
license,
payment
or
stablecoin
other
issuer,
authorization
may
to do business from a State to
engage in the business of money transmission
, the
or
issuance
provide
of
custodial
payment
services
instruments
through
or
the
stored
permitted
value,
payment
custodial
stablecoin
services,
issuer
or
in
any
similar
State
or related activity,
if such State-chartered depository institution is— (
1
A
)
subject
required by the laws or regulations of the home State
to
prudential
establish
regulation
and maintain adequate liquidity,
and
supervision
such liquidity is regularly reassessed
by the
chartering
home
State
in
banking
a
supervisor
manner
to
that
take
is
into
substantially
account
similar
any
to
changes in
the
prudential
financial
regulation
condition
and
supervision
risk
applicable
profile
to
of
insured
the
depository
institution,
institutions
including
chartered
any uninsured deposits maintained
by such
State
institution
; and (
2
B
) required by the laws
or regulations
of the
chartering
home
State to
establish and
maintain
reserves
adequate
for
capital,
any
and
outstanding
such
deposit
capital
liabilities
is
in
regularly
an
reassessed
amount
by
equal
the home State banking supervisor
to
or
take
greater
into
than
account
such
any
liabilities
changes in the financial condition
and
to
risk
hold
profile of the institution, including any uninsured deposits maintained by
such
reserves
institution. (2) Rule of construction. Nothing
in
this section shall limit, or be construed to limit, the authority of
a
manner
host
that
State
is
bank
at
regulator,
least
to
as
perform
protective
examinations
of
customers
a
as
depository
is
institution’s
required
subsidiary
under
permitted payment stablecoin issuer or activities conducted through the permitted payment stablecoin issuer to ensure compliance with host State consumer protection laws that the host State bank regulator has specific jurisdiction to enforce, which shall apply to such institution consistent with
section
8.
7(f).
(e) Definitions. In this section:
(1)
Depository
Home
institution;
State
bank supervisor
. The
terms
term
depository
home
institution and
State
bank
means
supervisor have
the
meanings
State
given
by
those
which
terms under section 3 of
the
Federal
depository
Deposit
institution
Insurance
is
Act (12 U
chartered
.
S.C. 1813).
(2)
Federal
Host
credit union;
State
credit union
. The
terms
term
Federal
host
credit
State
union
means
and
a
State
credit union have the meanings given those terms
in
section
which
101
a
of
depository
the
institution
Federal
establishes
Credit
a
Union
branch,
Act
solicits
(12
customers,
U.S.C.
or
1752).
otherwise
(3)
engages
State
in
credit
business
union
activities,
supervisor.
other
The
than
term State credit union supervisor has
the
meaning
home
given that term in section 6003 of the Anti-Money Laundering Act of 2020 (31 U
State
.
S.C. 5311 note).
(a) Rule of construction. Nothing in this Act may be construed to limit the authority of a depository institution, Federal credit union, State credit union, national bank, or trust company to engage in activities permissible pursuant to applicable State and Federal law, including—
(1) accepting or receiving deposits or shares (in the case of a credit union), and issuing digital assets that represent those deposits or shares;
(2) utilizing a distributed ledger for the books and records of the entity and to effect intrabank transfers; and
(3) providing custodial services for payment stablecoins, private keys of payment stablecoins, or reserves backing payment stablecoins.
(b) Regulatory review. Entities regulated by the primary Federal payment stablecoin regulators are authorized to engage in the payment stablecoin activities and investments contemplated by this Act, including acting as a principal or agent with respect to any payment stablecoin and payment of fees to facilitate customer transactions. The primary Federal payment stablecoin regulators shall review all existing guidance and regulations, and if necessary, amend or promulgate new regulations and guidance, to clarify that regulated entities are authorized to engage in such activities and investments.
(c) Treatment of custody activities. The appropriate Federal banking agency, the National Credit Union Administration (in the case of a credit union), and the Securities and Exchange Commission may not require a depository institution, national bank, Federal credit union, State credit union, or trust company, or any affiliate thereof—
(1) to include digital assets held in custody that are not owned by the entity as a liability on the financial statement or balance sheet of the entity, including payment stablecoin custody or safekeeping activities; or
(2) to hold in custody or safekeeping regulatory capital against digital assets and reserves backing such assets described in section 4(a)(1)(A), except as necessary to mitigate against operational risks inherent in custody or safekeeping services, as determined by—
(A) the appropriate Federal banking agency;
(B) the National Credit Union Administration (in the case of a credit union);
(C) a State bank supervisor; or
(D) a State credit union supervisor.
(d) State-chartered depository institutions
(1) In general. A depository institution chartered under the banking laws of a State, that has a subsidiary that is a permitted payment stablecoin issuer, may engage in the business of money transmission or provide custodial services through the permitted payment stablecoin issuer in any State if such State-chartered depository institution is—
(A) required by the laws or regulations of the home State to establish and maintain adequate liquidity, and such liquidity is regularly reassessed by the home State banking supervisor to take into account any changes in the financial condition and risk profile of the institution, including any uninsured deposits maintained by such institution; and
(B) required by the laws or regulations of the home State to establish and maintain adequate capital, and such capital is regularly reassessed by the home State banking supervisor to take into account any changes in the financial condition and risk profile of the institution, including any uninsured deposits maintained by such institution.
(2) Rule of construction. Nothing in this section shall limit, or be construed to limit, the authority of a host State bank regulator, to perform examinations of a depository institution’s subsidiary permitted payment stablecoin issuer or activities conducted through the permitted payment stablecoin issuer to ensure compliance with host State consumer protection laws that the host State bank regulator has specific jurisdiction to enforce, which shall apply to such institution consistent with section 7(f).
(e) Definitions. In this section:
(1) Home State. The term home State means the State by which the depository institution is chartered.
(2) Host State. The term host State means a State in which a depository institution establishes a branch, solicits customers, or otherwise engages in business activities, other than the home State.