GENIUS Act of 2025

The GENIUS Act of 2025 would create a regulatory framework for payment stablecoins, which are digital assets that issuers must redeem at a fixed value. Only certain entities would be permitted to issue these stablecoins to U.S. users: subsidiaries of banks, federally-qualified nonbank issuers, or state-qualified issuers (limited to those with $10 billion or less in stablecoin issuance). These issuers would need to maintain reserves equal to the full value of stablecoins in circulation, using U.S. currency or similarly liquid assets, and would be required to publicly disclose their redemption policies and publish monthly reserve details.

If enacted, the bill would allow foreign stablecoin issuers to operate in the United States if they can comply with U.S. legal orders, subject to Treasury Department agreements with similarly regulated countries. Permitted stablecoins would not be classified as securities, but issuers would still need to comply with anti-money laundering laws. The bill has passed committee review and is eligible for a Senate floor vote, though it has not yet become law.