#GENIUSActPass 🏛️ What is the GENIUS Act?
GENIUS stands for Guiding and Establishing National Innovation for U.S. Stablecoins. It’s the first-ever federal bill in the U.S. to regulate payment stablecoins—digital currencies pegged 1:1 to assets like the U.S. dollar—establishing a nationwide framework for their issuance and oversight
✅ Senate Approval
Passed Senate 68–30 on June 17, 2025
Now heads to the House of Representatives.
Expected signing by President Trump before Congress’s August recess
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Legal Issuers Only
Issuers must be U.S. bank subsidiaries, federally chartered non-banks, or state-chartered entities.
Companies with > $10 billion in outstanding stablecoins must choose federal oversight; smaller issuers may stay under state rules if standards match closely
100% Reserve
Stablecoins must be fully backed with U.S. dollars or high-quality liquid assets (cash, short-dated Treasuries ≤ 93 days, overnight repo).
No commingling or rehypothecation of reserves
Transparency & Audits
Monthly public disclosures on reserves.
Annual GAAP audits for issuers with > $50 billion in circulation
Consumer & Bankruptcy Protections
Stablecoin holders receive redemption priority if an issuer fails
AML/Sanctions Compliance
Treated as financial institutions under Bank Secrecy Act; must follow anti-money laundering and OFAC rules
Governance & Interoperability
Treasury to study algorithmic stablecoins.
Federal Reserve/Treasury to coordinate with foreign regulators for cross-border interoperability
Tech & Big Tech Limits
Non-financial public companies (e.g., Meta, Amazon) need unanimous approval from Treasury, Fed, and FDIC to issue stablecoins
Political Conflict Safeguards
Elected officials (including their families) are banned from issuing stablecoins—though the president is exempt. The act also prevents issuance by Congress and exec-branch members
Bottom line: The GENIUS Act is a landmark, bipartisan step toward finally regulating stablecoins in the U.S.—balancing innovation, consumer protection, and financial oversight