GENIUS Act of 2025
Sponsored By: Senator Bill Hagerty
Introduced
Summary
National 1:1 reserve requirement and federal licensing framework for U.S. payment stablecoins that limits issuance to approved entities and sets rules for reserves, transparency, custody, and insolvency. This creates a uniform set of issuance and supervision rules while allowing a limited state opt-in for smaller issuers.
Show full summary
- Consumers and holders: Stablecoin holders get first priority in insolvency proceedings and issuers must publish monthly reserve breakdowns with monthly CPA certification and CEO/CFO attestation. This aims to make redemptions and reserve transparency more reliable for users.
- Issuers and banks: Only permitted issuers may operate and they must back outstanding stablecoins 1:1 with cash, very short‑term Treasuries, certain short‑maturity repos and eligible deposits. Regulators will set capital, liquidity, and operational standards and may assess civil penalties up to $100,000 per day for violations.
- State regulators and market structure: States can run a certified opt‑in regime for issuers with market value at or below $10 billion. Any issuer above $10 billion must transition to federal oversight within 360 days and Treasury can review or reject state certifications.
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 4 benefits, 1 costs, 2 mixed.
Holder protections, custody, and reserves
This bill would require permitted issuers to back each stablecoin 1-to-1 with specified safe assets and publish monthly reserve reports examined by a CPA. CEOs and CFOs would certify monthly reports under penalty of law. Custody firms would have to keep customer assets separate and be supervised. In bankruptcy, stablecoin holders would get first priority over other creditors. If enacted, these rules would strengthen protection and transparency for holders.
Interoperability, cross-border deals, reports
This bill would direct regulators to study and, if needed, set technical interoperability standards with NIST and standards bodies. The Federal Reserve and Treasury would pursue reciprocal arrangements with countries that have similar stablecoin rules. Regulators must also provide rulemaking updates and annual industry reports to Congress and FSOC. If enacted, these steps could make cross-border stablecoin transfers smoother and increase transparency.
Stablecoins excluded from securities
The bill would amend several federal securities laws so that a payment stablecoin issued by a permitted issuer is not a "security" under those laws. This change would apply only to stablecoins from permitted issuers. If enacted, permitted issuers would avoid certain securities regulations, changing the regulatory mix for those products.
New enforcement powers and penalties
If enacted, the primary regulator could suspend or revoke permits, bring cease-and-desist actions, and remove affiliated parties under FDIA procedures. Civil penalties of up to $100,000 per day can apply to unauthorized issuance and material violations, with extra penalties for knowing participation. Former institution-affiliated people can still face enforcement for up to six years after leaving. These tools increase legal and financial exposure for issuers and their officers.
State opt-in and $10 billion transition
If enacted, issuers with market value at or below $10 billion could choose to be regulated under a certified State regime. States must certify within one year and recertify each year. Issuers that grow above $10 billion must move to federal supervision within 360 days or stop issuing new stablecoins until they comply. These rules give smaller issuers more state options but force larger firms to switch to federal oversight.
Who supervises stablecoin issuers
This bill would make the Comptroller the primary federal regulator for qualified nonbank stablecoin issuers. Subsidiaries of insured banks would be supervised like their bank parent and covered by bank privacy rules. Permitted issuers would also be treated as financial institutions for anti-money-laundering rules. If enacted, these changes would centralize oversight but could raise compliance costs for some firms.
Faster licensing and deemed approvals
This bill would require regulators to decide complete permit applications within 120 days. If a regulator misses that deadline, the application is deemed approved. Denials must be explained in writing and applicants can request a hearing on denials. These rules would reduce uncertainty and speed up access to permitted issuer status for applicants.
Sponsors & CoSponsors
Sponsor
Bill Hagerty
TN • R
Cosponsors
Tim Scott
SC • R
Sponsored 2/4/2025
Kirsten Gillibrand
NY • D
Sponsored 2/4/2025
Cynthia Lummis
WY • R
Sponsored 2/4/2025
Angela Alsobrooks
MD • D
Sponsored 2/20/2025
Roll Call Votes
No roll call votes available for this bill.
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