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
… 6 unchanged passages …
(D) the compliance of the Federal qualified nonbank payment stablecoin issuer with the requirements of the Bank Secrecy Act and with laws authorizing the imposition of sanctions
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… 2 unchanged passages …
(B) the financial, operational, technological, and other risks associated
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the permitted payment stablecoin issuer that may pose a threat to—
… 8 unchanged passages …
(1) Suspension or revocation of registration. The primary Federal payment stablecoin regulator of a permitted payment stablecoin issuer that is not a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of less than $10,000,000,000 may prohibit the permitted payment stablecoin issuer from issuing payment stablecoins, if the primary Federal payment stablecoin regulator determines that such permitted payment stablecoin issuer, or an institution-affiliated party of the permitted payment stablecoin issuer is willfully or recklessly violating or has willfully or recklessly violated—
… 20 unchanged passages …
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(a) Supervision
(1) In general. Each permitted payment stablecoin issuer that is not a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of less than $10,000,000,000 shall be subject to supervision by the appropriate primary Federal payment stablecoin regulator.
(2) Submission of reports. Each permitted payment stablecoin issuer described in paragraph (1) shall, upon request, submit to the appropriate primary Federal payment stablecoin regulator a report on—
(A) the financial condition of the permitted payment stablecoin issuer;
(B) the systems of the permitted payment stablecoin issuer for monitoring and controlling financial and operating risks;
(C) compliance by the permitted payment stablecoin issuer (and any subsidiary thereof) with this Act; and
(D) the compliance of the Federal qualified nonbank payment stablecoin issuer with the requirements of the Bank Secrecy Act and with laws authorizing the imposition of sanctions and implemented by the Secretary of the Treasury.
(3) Examinations. The appropriate primary Federal payment stablecoin regulator shall examine a permitted payment stablecoin issuer described in paragraph (1) in order to assess—
(A) the nature of the operations and financial condition of the permitted payment stablecoin issuer;
(B) the financial, operational, technological, and other risks associated within the permitted payment stablecoin issuer that may pose a threat to—
(i) the safety and soundness of the permitted payment stablecoin issuer; or
(ii) the stability of the financial system of the United States; and
(C) the systems of the permitted payment stablecoin issuer for monitoring and controlling the risks described in subparagraph (B).
(4) Requirements for efficiency
(A) Use of existing reports. In supervising and examining a permitted payment stablecoin issuer under this subsection, a primary Federal payment stablecoin regulator shall, to the fullest extent possible, use existing reports and other supervisory information.
(B) Avoidance of duplication. A primary Federal payment stablecoin regulator shall, to the fullest extent possible, avoid duplication of examination activities, reporting requirements, and requests for information in carrying out this subsection with respect to a permitted payment stablecoin issuer.
(C) Consideration of burden. A primary Federal payment stablecoin regulator shall, with respect to any examination or request for the submission of a report under this subsection, only request examinations and reports at a cadence and in a format that is similar to that required for similarly situated entities regulated by the primary Federal payment stablecoin regulator.
(b) Enforcement
(1) Suspension or revocation of registration. The primary Federal payment stablecoin regulator of a permitted payment stablecoin issuer that is not a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of less than $10,000,000,000 may prohibit the permitted payment stablecoin issuer from issuing payment stablecoins, if the primary Federal payment stablecoin regulator determines that such permitted payment stablecoin issuer, or an institution-affiliated party of the permitted payment stablecoin issuer is willfully or recklessly violating or has willfully or recklessly violated—
(A) this Act or any regulation or order issued under this Act; or
(B) any condition imposed in writing by the primary Federal payment stablecoin regulator in connection with a written agreement entered into between the permitted payment stablecoin issuer and the primary Federal payment stablecoin regulator.
(2) Cease-and-desist proceedings. If the primary Federal payment stablecoin regulator of a permitted payment stablecoin issuer that is not a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of less than $10,000,000,000 has reasonable cause to believe that the permitted payment stablecoin issuer or any institution-affiliated party of the permitted payment stablecoin issuer is violating, has violated, or is attempting to violate this Act, any regulation or order issued under this Act, or any written agreement entered into with the primary Federal payment stablecoin regulator or condition imposed in writing by the primary Federal payment stablecoin regulator in connection with any application or other request, the primary Federal payment stablecoin regulator may, by provisions that are mandatory or otherwise, order the permitted payment stablecoin issuer or institution-affiliated party of the permitted payment stablecoin issuer to—
(A) cease and desist from such violation or practice; or
(B) take affirmative action to correct the conditions resulting from any such violation or practice.
(3) Removal and prohibition authority. The primary Federal payment stablecoin regulator of a permitted payment stablecoin issuer that is not a State qualified payment stablecoin issuer may remove an institution-affiliated party of the permitted payment stablecoin issuer from the position or office of that institution-affiliated party or prohibit further participation in the affairs of the permitted payment stablecoin issuer or of all such permitted payment stablecoin issuers by that institution-affiliated party, if the primary Federal payment stablecoin regulator determines that—
(A) the institution-affiliated party has knowingly committed a violation or attempted violation of this Act or any regulation or order issued under this Act; or
(B) the institution-affiliated party has knowingly committed a violation of any provision of subchapter II of chapter 53 of title 31, United States Code.
(4) Procedures
(A) In general. If a primary Federal payment stablecoin regulator identifies a violation or attempted violation of this Act or makes a determination under paragraph (1), (2), or (3), the primary Federal payment stablecoin regulator shall comply with the procedures set forth in subsections (b) and (e) of section 8 of the Federal Deposit Insurance Act (12 U.S.C. 1818) or subsections (e) and (g) of section 206 the Federal Credit Union Act (12 U.S.C. 1786(e) and (g)), as applicable.
(B) Judicial review. A person aggrieved by a final action under this subsection may obtain judicial review of such action exclusively as provided in section 8(h) of the Federal Deposit Insurance Act (12 U.S.C. 1818(h)) or section 206(j) of the Federal Credit Union Act (12 U.S.C. 1786(j)), as applicable.
(C) Injunction. A primary Federal payment stablecoin regulator may, at the discretion of the regulator, follow the procedures provided in section 8(i)(1) of the Federal Deposit Insurance Act (12 U.S.C. 1818(i)(1)) or section 206(k)(1) of the Federal Credit Union Act (12 U.S.C. 1786(k)(1)), as applicable, for judicial enforcement of any effective and outstanding notice or order issued under this subsection.
(D) Temporary cease-and-desist proceedings. If a primary Federal payment stablecoin regulator determines that a violation or attempted violation of this Act or an action with respect to which a determination was made under paragraph (1), (2), or (3), or the continuation thereof, is likely to cause insolvency or significant dissipation of assets or earnings of a permitted payment stablecoin issuer, or is likely to weaken the condition of the permitted payment stablecoin issuer or otherwise prejudice the interests of the customers of the permitted payment stablecoin issuer prior to the completion of the proceedings conducted under this paragraph, the primary Federal payment stablecoin regulator may follow the procedures provided in section 8(c) of the Federal Deposit Insurance Act (12 U.S.C. 1818(c)) or section 206(f) of the Federal Credit Union Act (12 U.S.C. 1786(f)), as applicable, to issue a temporary cease and desist order.
(5) Civil money penalties. Unless otherwise specified in this Act, the civil money penalties for violations of this Act consist of the following:
(A) Failure to be approved. Any person that issues a United States dollar-denominated payment stablecoin in violation of section 3, and any institution-affiliated party of such a person who knowingly participates in issuing such a payment stablecoin, shall be liable for a civil penalty of not more than $100,000 for each day during which such payment stablecoins are issued.
(B) First tier. Except as provided in subparagraph (A), a permitted payment stablecoin issuer or institution-affiliated party of such permitted payment stablecoin issuer that materially violates this Act or any regulation or order issued under this Act, or that materially violates any condition imposed in writing by the appropriate primary Federal payment stablecoin regulator in connection with a written agreement entered into between the permitted payment stablecoin issuer and that primary Federal payment stablecoin regulator, shall be liable for a civil penalty of not more than $100,000 for each day during which the violation continues.
(C) Second tier. Except as provided in subparagraph (A), and in addition to the penalties described in subparagraph (B), a permitted payment stablecoin issuer or institution-affiliated party of such permitted payment stablecoin issuer who knowingly participates in a violation of any provision of this Act, or any regulation or order issued under this Act, shall be liable for a civil penalty of not more than an additional $100,000 for each day during which the violation continues.
(D) Procedure. Any penalty imposed under this paragraph may be assessed and collected by the appropriate primary Federal payment stablecoin regulator pursuant to the procedures set forth in section 8(i)(2) of the Federal Deposit Insurance Act (12 U.S.C. 1818(i)(2)) or section 206(k)(2) of the Federal Credit Union Act (12 U.S.C. 1786(k)(2)), as applicable.
(E) Notice and orders after separation from service. The resignation, termination of employment or participation, or separation of an institution-affiliated party (including a separation caused by the closing of a permitted payment stablecoin issuer) shall not affect the jurisdiction and authority of a primary Federal payment stablecoin regulator to issue any notice or order and proceed under this subsection against any such party, if such notice or order is served before the end of the 6-year period beginning on the date on which such party ceased to be an institution-affiliated party with respect to such permitted payment stablecoin issuer.
(6) Non-applicability to a State qualified payment stablecoin issuer. Notwithstanding anything in this subsection to the contrary, this subsection shall not apply to a State qualified payment stablecoin issuer.
(c) Rule of construction. Nothing in this Act may be construed to modify or otherwise affect any right or remedy under any Federal consumer financial law, including 12 U.S.C. 5515 and 15 U.S.C. 41 et seq.