#GENIUSActPass
đď¸ What is the GENIUS Act?
GENIUS stands for Guiding and Establishing National Innovation for U.S. Stablecoins. Itâs the first-ever federal bill in the U.S. to regulate payment stablecoinsâdigital currencies pegged 1:1 to assets like the U.S. dollarâestablishing a nationwide framework for their issuance and oversight
â Senate Approval
Passed Senate 68â30 on June 17, 2025
Now heads to the House of Representatives.
Expected signing by President Trump before Congressâs 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 >âŻ$10âŻbillion 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 â¤âŻ93 days, overnight repo).
No commingling or rehypothecation of reserves
Transparency & Audits
Monthly public disclosures on reserves.
Annual GAAP audits for issuers with >âŻ$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 stablecoinsâthough 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.âbalancing innovation, consumer protection, and financial oversight
