#GENIUSAct

The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025) is a U.S. federal law passed in July 2025 to regulate stablecoins, cryptocurrencies pegged to assets like the U.S. dollar.

Key points:

• Regulation: Only permitted issuers (subsidiaries of insured depository institutions, federal or state-qualified nonbank issuers) can issue stablecoins, regulated by federal or state authorities (state regulation for issuers with ≤$10 billion in issuance).

Consumer Protection: Requires 1:1 reserve backing with liquid assets (e.g., U.S. dollars, Treasuries), monthly reserve disclosures, annual audits for large issuers, and priority for stablecoin holders in bankruptcy.

• Compliance: Issuers must adhere to the Bank Secrecy Act for anti-money laundering, with strict marketing rules prohibiting claims of U.S. government backing or legal tender status.

• Impact: Aims to stabilize the $250 billion stablecoin market, boost consumer trust, and encourage innovation while mitigating financial risks. Critics warn it may favor industry insiders and raise conflict-of-interest concerns.

Signed into law by President Trump on July 18, 2025, after bipartisan support (Senate 68-30, House 308-122).