GENIUS Act (Pub. L. 119-27, 2025) — Federal payment-stablecoin framework
The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act, July 2025) is the first federal framework for payment stablecoins: only a permitted payment stablecoin issuer may issue one, issuers must hold identifiable reserves backing outstanding stablecoins on at least a 1-to-1 basis, and must disclose their redemption policy and publish monthly reserve composition. GENIUS Act issuers are also Bank Secrecy Act financial institutions.
Verbatim regulatory text
Verbatim provisions from GENIUS Act (Pub. L. 119-27, 2025) — Federal payment-stablecoin framework — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
GENIUS Act §3(a)
It shall be unlawful for any person other than a permitted payment stablecoin issuer to issue a pay- ment stablecoin in the United States.
GENIUS Act §4(a)(1)(A)
maintain identifiable reserves backing the out- standing payment stablecoins of the permitted payment stablecoin issuer on an at least 1 to 1 basis, with reserves comprising—
GENIUS Act §4(a)(2)(B)
publicly disclose the issuer’s redemption policy, which shall— (i) establish clear and conspicuous procedures for timely redemption of outstanding payment stablecoins, provided that any discretionary limitations on timely redemptions can only be imposed by a State qualified payment stablecoin regulator, the Corporation, the Comptroller, or the Board, consistent with section 7;
GENIUS Act §4(a)(2)(C)
publish the monthly composition of the issuer’s reserves on the website of the issuer, containing— (i) the total number of outstanding payment stablecoins issued by the issuer; and (ii) the amount and composition of the reserves described in subparagraph (A), including the average tenor and geographic location of custody of each cat- egory of reserve instruments.
GENIUS Act §4(a)(1)(A) — enumerated items (chapeau recall fix)
(i) United States coins and currency (including Federal Reserve notes) or money standing to the credit of an account with a Federal Reserve Bank; (ii) funds held as demand deposits (or other deposits that may be withdrawn upon request at any time) or insured shares at an insured depository institution (including any foreign branches or agents, including correspondent banks, of an insured deposi- tory institution), subject to limitations established by the Corporation and the National Credit Union Administration, as applicable, to address safety and soundness risks of such insured depository institution; (iii) Treasury bills, notes, or bonds— (I) with a remaining maturity of 93 days or less; or (II) issued with a maturity of 93 days or less; (iv) money received under repurchase agreements, with the permitted payment stablecoin issuer acting as a seller of securities and with an overnight maturity, that are backed by Treasury bills with a maturity of 93 days or less; (v) reverse repurchase agreements, with the per- mitted payment stablecoin issuer acting as a purchaser of securities and with an overnight maturity, that are collateralized by Treasury notes, bills, or bonds on an overnight basis, subject to overcollateralization in line with standard market terms, that are— (I) tri-party; (II) centrally cleared through a clearing agency registered with the Securities and Exchange Commission; or Time period. Time period. 12 USC 5903. VerDate Sep 11 2014 23:57 Aug 06, 2025 Jkt 059139 PO 00027 Frm 00007 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL027.119 PUBL027 kcroghan on LAP5R21GR3PROD with PUBLAWS 139 STAT. 426 PUBLIC LAW 119–27—JULY 18, 2025 (III) bilateral with a counterparty that the issuer has determined to be adequately credit- worthy even in the event of severe market stress; (vi) securities issued by an investment company registered under section 8(a) of the Investment Com- pany Act of 1940 (15 U.S.C.