The GENIUS Stablecoin Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is the first federal bill in U.S. history targeting stablecoins, passed by the Senate in June 2025.
🧾 1. Bill Overview
Passage Date: June 17, 2025
Senate voting results: 68 votes in favor, 30 votes against, with bipartisan consensus
Status: The first federal-level stablecoin bill will be submitted for House review, expected to be signed by the President before August
🔑 2. Core Provisions
1. [Reserve Asset Requirements]
All stablecoins must be 100% backed by cash or U.S. government bonds (short-term highly liquid assets)
Prohibit re-pledging reserve assets (to prevent risk amplification)
2. [Dual-track Issuance and Regulation System]
Large issuers (assets > $10 billion): must obtain federal-level financial regulatory licenses (like OCC or CFTC)
Small and medium-sized issuers: can accept state government regulation but must meet federal minimum standards
3. [Transparency and Auditing]
Monthly public reserve composition reports
Those with assets exceeding $50 billion must undergo annual financial audits
4. [User Protection]
Clearly grants token holders the legal right to "redeem for fiat at 1:1"
If the issuer goes bankrupt, token holders have priority for repayment
Must comply with the Bank Secrecy Act, anti-money laundering (AML), and sanctions compliance
5. [Restrictions on Foreign Stablecoins]
The Treasury can prohibit non-compliant foreign stablecoins from circulating in the U.S.
Strengthen national security reviews to prevent issuers controlled by hostile nations
6. [Algorithmic Stablecoins]
Not directly prohibited, but the Treasury must submit a risk assessment report for "endogenously collateralized stablecoins"
🏦 3. Restrictions on Tech Giants Issuing Coins
If publicly listed companies in non-financial industries (like Amazon, Walmart, Meta) want to issue stablecoins,
Must pass a unanimous approval from a committee called the "Stablecoin Qualification Review Committee"
Equivalent to restricting large tech companies' involvement in stablecoin issuance
⚖️ 4. Bill Intent and Potential Impact
✅ Positive Goals
Provides a clear regulatory framework to attract compliant stablecoin issuers (like USDC, PayPal USD)
Promote U.S. leadership in the global cryptocurrency payment sector
Encourage financial innovation and protect consumer rights
⚠️ Controversies and Concerns
Some senators criticize the bill:
Anti-money laundering requirements are too lenient
May place taxpayers at risk of stablecoin collapse
Intensifies instability factors in U.S. financial markets
📅 5. Next Steps and Timeline
The bill has been sent to the House, with the possibility of merging with other cryptocurrency regulatory bills (like the CLARITY Act) before summer 2025
If passed smoothly, President Trump is expected to sign it before the August recess
The U.S. stablecoin market will enter a new era of regulatory implementation
✅ Summary Table
Project Regulatory Content
Reserve Assets 100% backed by cash and short-term U.S. Treasury bonds
Issuance Qualification Dual-track regulation by federal and state governments
Auditing and Transparency Monthly reports made public, annual audits (depending on size)
Consumer Rights Legal protection for 1:1 redemption and bankruptcy priority
Foreign Stablecoins Could be prohibited from circulation
Restrictions on Tech Giants Stablecoins can only be issued with special approval
Algorithmic Stablecoins Research not prohibited
Expected Effective Date Q3 2025
