The GENIUS Act (full name: Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025) is a bill proposed by the U.S. Senate in 2025 to provide a clear regulatory framework for stablecoins. The bill was jointly proposed by Senator Bill Hagerty and other bipartisan members to regulate the issuance and circulation of stablecoins and ensure the stability and security of the financial system.
📜 Core content of the bill
1. Issuance licensing system: Only banks, credit unions or non-bank institutions with federal or state licenses are allowed to issue payment stablecoins.
2.100% reserve requirement: All stablecoins must be fully reserved 1:1 in cash, short-term U.S. Treasury bonds or other highly liquid assets.
3. Transparency and Audit: Issuers are required to disclose the composition of their reserves on a monthly basis and undergo annual audits by certified public accountants, especially for issuers with a market capitalization of more than $50 billion.
4. Anti-money laundering and national security compliance: Stablecoin issuers are regarded as financial institutions under the (Bank Secrecy Act) and are required to establish anti-money laundering and sanctions compliance mechanisms, including risk assessment, transaction monitoring and suspicious activity reporting.
5. Restrictions on overseas issuers and technology giants: Overseas stablecoin issuers must comply with the same regulatory standards as domestic U.S. issuers, otherwise they will be prohibited from providing services on U.S. trading platforms; large technology companies (such as Meta and Amazon) must meet strict financial risk control, user data privacy protection and fair business standards if they want to issue stablecoins.
6. Consumer protection and bankruptcy priority: When the issuer goes bankrupt, stablecoin holders will be paid first; members of Congress and senior administrative officials are prohibited from issuing stablecoins while in office to prevent conflicts of interest.
🌍 Strategic significance and impact
Consolidating the dollar's hegemony: By promoting the compliance of stablecoins, anchoring them to U.S. dollar reserve assets, and restricting non-compliant overseas issuers, the bill is reshaping the international competitiveness and financial dominance of the "digital dollar."
Attract international capital: The bill requires compliant stablecoins to use high-quality, low-risk assets (such as U.S. Treasuries) as reserves. It is expected that stablecoin issuers will become major buyers of U.S. Treasuries, enhancing global demand for U.S. dollar assets and consolidating its status as a "global reserve currency."
Regulating foreign-funded stablecoins: Imposing restrictions on overseas issuers such as Tether (such as establishing compliant subsidiaries or exiting the market) can effectively prevent non-US entities from "grabbing" the right to speak on the US dollar digital currency by issuing US dollar stablecoins.
🧭 Current progress
As of May 20, 2025, the U.S. Senate passed the GENIUS Act with 66 votes in favor and 32 votes against, marking a key step in the legislative process. Next, the bill will enter the final vote stage of the full Senate, and then it will need to be reviewed by the House of Representatives and signed by the President to become law.
The advancement of the (GENIUS Act) not only provides a clear regulatory framework for the stablecoin industry, but also lays the foundation for the United States' leadership in the field of digital currency. With the further implementation of the bill, it is expected to attract more institutional investors to enter the stablecoin market and promote the healthy development of the digital financial ecosystem.
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