GENIUS Act of 2025
Sponsored By: Senator Bill Hagerty
In Committee
Summary
Creates a federal framework for payment stablecoins. This bill would define who may issue U.S. payment stablecoins and set rules for reserves, audits, custody, anti‑money‑laundering, and cross‑border compliance.
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- Consumers and users: Permitted issuers would have to back each stablecoin 1:1 with U.S. currency or similarly liquid assets, publish a redemption policy, and post monthly reserve composition and outstanding totals.
- Issuers and banks: Only permitted issuers may issue payment stablecoins and they must be an insured depository subsidiary, a federal‑qualified nonbank issuer, or a state‑qualified issuer limited to $10 billion or less in outstanding issuance. CEOs and CFOs must certify monthly reports and issuers with more than $50 billion outstanding must publish audited annual GAAP financial statements.
- Regulators and cross‑border rules: Federal regulators would set capital, liquidity, AML, custody, and operational standards and the Comptroller would supervise federal nonbank issuers. Treasury could bar secondary U.S. trading of noncompliant foreign stablecoins and impose penalties up to $1,000,000 per day for foreign issuers and $100,000 per day for U.S. intermediaries, while custodians must protect customer assets and stablecoin holders have priority claims on required reserves in insolvency.
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Bill Overview
Analyzed Economic Effects
7 provisions identified: 1 benefits, 0 costs, 6 mixed.
Stronger reserve and custody protections
If enacted, permitted stablecoins would need reserves equal to outstanding coins on a 1:1 basis. Issuers must post monthly reserve details and get monthly independent exams. Custodians must segregate customer assets and protect them from custodian creditors. Holders would get priority for required reserves in issuer bankruptcy and regulators could intervene in insolvency cases. False monthly certifications could bring criminal penalties, and issuers may not reuse reserves except in narrow, listed cases.
Technical standards and industry reports
If enacted, regulators with NIST and standards bodies would assess and may set technical interoperability rules so different stablecoins and systems work together. Regulators must also publish yearly industry reports starting one year after enactment and the Financial Stability Oversight Council would include the findings in its annual report.
Who may issue and marketing limits
If enacted, only licensed permitted issuers could issue U.S. payment stablecoins. Unlicensed coins could not be treated as cash, used for wholesale settlement, or as cash‑equivalent collateral. The bill would ban marketing that falsely says a stablecoin is U.S. government backed or FDIC/NCUA insured. People convicted of certain financial felonies could not be officers or directors, and knowing violations can bring fines up to $1 million and up to five years in prison.
AML, sanctions, and foreign issuer rules
If enacted, permitted stablecoin issuers would be treated as financial institutions under the Bank Secrecy Act. Issuers must run AML and sanctions programs, check customers, keep records, and block prohibited transactions. Treasury must coordinate with issuers on lawful blocking orders and can designate foreign issuers noncompliant. Persistent noncompliance can lead to bans on U.S. platforms trading that foreign stablecoin and civil penalties for platforms and foreign issuers.
Capital, liquidity, and risk rules
If enacted, regulators would set tailored capital, liquidity, reserve‑diversification, and interest‑rate risk rules for permitted issuers. Standards must fit each issuer's business and not be more than needed to keep operations going. Federal banking agencies must avoid forcing insured depository institutions to hold consolidated capital above what the permitted issuer must hold.
Licensing, review, and enforcement rules
If enacted, regulators must tell applicants within 30 days if an application is complete and decide within 120 days or face deemed approval. Regulators could suspend or revoke registrations and fine violators up to $100,000 per day. Rulemaking deadlines and a 12-month safe harbor for certain pending applicants would govern timing. The Comptroller would supervise some nonbank issuers and regulators get powers for urgent interventions.
State opt-in and host‑state rules
If enacted, issuers with $10 billion or less in outstanding stablecoins could opt for a State regime that matches federal rules. States must certify initial similarity within one year and recertify yearly. If an issuer grows above $10 billion, it must move to the federal framework within 360 days unless a waiver is granted. Host-State consumer laws apply to out-of-State State-qualified issuers only to the same extent as for out-of-State federal nonbank issuers.
Sponsors & CoSponsors
Sponsor
Bill Hagerty
TN • R
Cosponsors
Tim Scott
SC • R
Sponsored 3/10/2025
Kirsten Gillibrand
NY • D
Sponsored 3/10/2025
Cynthia Lummis
WY • R
Sponsored 3/10/2025
Angela Alsobrooks
MD • D
Sponsored 3/10/2025
Roll Call Votes
No roll call votes available for this bill.
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