GENIUS Act of 2025
GENIUS Act of 2025
Plain Language Summary
# GENIUS Act of 2025 Summary **What It Does:** The GENIUS Act would create the first comprehensive federal framework for regulating "stablecoins"—digital currencies designed to maintain a fixed value, typically pegged to the U.S. dollar. The bill would allow only approved entities to issue these digital assets in the United States and require them to hold full cash reserves backing every stablecoin in circulation (a "one-to-one" ratio). Issuers would need to be either subsidiaries of traditional banks, federally-regulated nonbank payment companies, or state-regulated entities (limited to those issuing $10 billion or less in stablecoins). **Who It Affects:** The bill would impact cryptocurrency companies and fintech firms wanting to issue stablecoins, traditional banks, state and federal financial regulators, and ultimately consumers using these digital currencies.
It would essentially create gatekeeping requirements that limit who can enter the stablecoin market. **Key Provisions:** Permitted issuers must maintain full reserves in U.S. currency or liquid assets, publicly disclose their redemption policies, and publish monthly financial reports. Companies can choose between federal or state regulation, though state regulators would only oversee smaller issuers (under $10 billion). **Current Status:** The bill is currently in committee and has not been voted on by the full Senate.
CRS Official Summary
Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 or the GENIUS Act of 2025 This bill establishes a regulatory framework for payment stablecoins (digital assets which an issuer must redeem for a fixed monetary value).Under the bill, only permitted issuers may issue a payment stablecoin in the United States. Permitted issuers must be a subsidiary of an insured depository institution, a federal-qualified nonbank payment stablecoin issuer, or a state-qualified payment stablecoin issuer. Permitted issuers must be regulated by the appropriate federal or state regulator. Permitted issuers may choose federal or state regulation; however, state regulation is limited to those with a stablecoin issuance of $10 billion or less.Permitted issuers must maintain reserves backing the stablecoin on a one-to-one basis using U.S. currency or other similarly liquid assets, as specified. Permitted issuers must also publicly disclose their redemption policy and publish monthly the details of their reserves.The bill sets forth requirements for (1) reusing reserves; (2) providing safekeeping services for stablecoins; and (3) supervisory, examination, and enforcement authority.In a bankruptcy insolvency proceeding involving a payment stablecoin issuer, stablecoin holders have priority over all other claims. Under the bill, permitted payment stablecoins are not considered securities under securities law. However, permitted issuers are subject to the Bank Secrecy Act for anti-money laundering and related purposes.The Federal Reserve must create and implement agreements with other jurisdictions that similarly regulate stablecoins for the purpose of facilitating international transactions and interoperability with U.S. dollar-denominated stablecoins issued overseas.
Latest Action
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.