All Roll Calls
Yes: 626 • No: 291
119-s-1582119th CongressWALLET
GENIUS Act
Sponsored By: Senator Hagerty, Bill [R-TN]
Became Law
Summary
This law creates a _national regulatory framework for payment stablecoins_. It limits who may issue U.S. payment stablecoins and requires one-to-one reserves, monthly disclosure, audits, anti-money-laundering controls, and clear redemption rules.
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- Families and holders: Clear redemption rules and public monthly reserve reports are required to improve transparency. Holders get priority to required reserves in insolvency and issuers may not pay interest just for holding a stablecoin.
- Issuers and banks: Only permitted issuers can issue payment stablecoins and State supervision is limited to issuers with $10 billion or less of outstanding issuance. Issuers must back coins 1:1 with U.S. cash or short-term Treasuries, provide monthly CEO/CFO certifications, and very large nonreporting issuers face audited GAAP statements above $50 billion.
- Foreign issuers and platforms: Digital asset service providers may not offer U.S. persons stablecoins unless issued by a permitted issuer or a foreign issuer meets comparable rules. Treasury can make reciprocal arrangements, issue waivers, and seek civil fines up to $1,000,000 or marketing penalties up to $500,000 for violations.
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Bill Overview
Analyzed Economic Effects
10 provisions identified: 1 benefits, 2 costs, 7 mixed.
Your stablecoins are fully backed
Each payment stablecoin is backed 1‑to‑1 by safe assets like U.S. cash, insured deposits, or Treasuries with 93 days or less to maturity. Issuers must post month‑end totals and reserve makeup every month, and a public accountant must examine each monthly report. CEOs and CFOs must certify these reports, and issuers over $50 billion must publish annual audited GAAP statements. Reserves cannot be reused except for narrow needs like margin, standard custody, or short‑term repos of 93 days or less that are cleared or pre‑approved. Issuers must publish clear redemption rules and give at least 7 days’ notice before changing fees. Issuers cannot pay interest or yield just for holding a stablecoin, and they cannot imply U.S. government backing in their names or ads.
Protections if an issuer fails
If a permitted issuer goes insolvent, holders share first in the required reserves, pro rata. If reserves fall short, holders get a top claim on the estate to the extent more reserves should have been held. Redemptions from required reserves are not blocked by the usual bankruptcy pause, and courts aim to start payouts within 14 days after the required hearing when the issuer files the needed papers. Custody assets are not recorded as a custodian’s liabilities, and capital is only required to cover operational risk. Stablecoins from non‑permitted issuers are not cash equivalents and cannot be used as margin or wholesale settlement assets.
Only licensed firms can issue stablecoins
The law makes it illegal to issue payment stablecoins unless you are a permitted issuer. Regulators must accept applications, say within 30 days if they are complete, and decide within 120 days. They can deny only for unsafe or unsound activity and must give written reasons and steps to fix it. Applicants can request a hearing within 30 days of a denial. Issuing on a public or decentralized network is not a valid reason to deny. Non‑financial public companies cannot issue unless a committee unanimously finds no material risk and will publish guidance within 1 year.
Tough fines and swift enforcement
Breaking the law can bring big fines and even jail. Issuance and related violations can cost up to $100,000 per day. Foreign issuers that keep offering after a noncompliance finding face up to $1,000,000 per violation per day. Platforms that break Treasury bans can face $100,000 per violation per day. People who knowingly violate can face up to $1,000,000 in fines and up to 5 years in prison. Regulators can seek injunctions, issue temporary cease‑and‑desist orders for urgent risks, and remove or bar officers who knowingly violate. In emergencies, federal regulators can order State issuers to limit redemptions or risky affiliate deals after notice; such orders lapse if not affirmed within 10 days.
Foreign stablecoins face U.S. checks
Three years after enactment, platforms in the U.S. cannot offer payment stablecoins unless they are from permitted issuers. A foreign issuer can be offered here only if Treasury finds its home rules comparable, it registers with the Comptroller, and it holds U.S. reserves for U.S. customers unless a reciprocity deal applies. Registration is deemed approved after 30 days unless rejected; Treasury must publish comparability findings and decide within 210 days. If a foreign issuer stays noncompliant 30 days after notice, Treasury can ban U.S. secondary trading 30 days after publishing the finding. Treasury can grant narrow safe harbors and waivers or licenses and must report waivers within 7 days.
Regulators will supervise and standardize
Federal regulators must examine permitted issuers, get needed reports, and avoid duplicate exams. They must finish implementing rules within 1 year and report to Congress within 180 days after the effective date. Regulators, with NIST and standards groups, must assess and may set interoperability standards using notice‑and‑comment rulemaking so permitted stablecoins can work across networks.
State option for smaller issuers
Issuers with $10 billion or less in stablecoins can operate under a certified State regime that is substantially similar to federal rules. Treasury sets the principles for “substantially similar” by rule. States must seek certification within 1 year after the effective date, and a review committee must decide within 30 days; denials give at least 180 days to fix issues. If an issuer grows above $10 billion, it has 360 days to join the federal framework or must stop issuing new coins until it drops below $10 billion.
Stronger AML rules and research
Permitted issuers are treated as financial institutions under anti‑money‑laundering laws. They must verify customers, keep records, monitor and report suspicious activity, and be able to block or freeze illegal transactions. Treasury opens a 60‑day public comment 30 days after enactment, then reports to Congress within 180 days. FinCEN must issue guidance and start rulemaking within 3 years to set standards, including for DeFi risks.
You can still self-custody
The law does not block three narrow actions. You can send coins directly to another person without an intermediary. You can move your assets between your U.S. account and your foreign account if both are from the same parent company. You can use your own software or hardware wallet for self‑custody.
Officials must disclose small stablecoins
Federal public financial disclosure filers must list permitted payment stablecoins that add up to $5,000 or less. This rule takes effect no later than 18 months after enactment or 120 days after final rules, whichever is earlier.
Sponsors & CoSponsors
Sponsor
Hagerty, Bill [R-TN]
TN • R
Cosponsors
Sen. Lummis, Cynthia M. [R-WY]
WY • R
Sponsored 5/1/2025
Sen. Scott, Tim [R-SC]
SC • R
Sponsored 5/1/2025
Sen. Sullivan, Dan [R-AK]
AK • R
Sponsored 5/7/2025
Sen. Moreno, Bernie [R-OH]
OH • R
Sponsored 6/17/2025
Sen. Ricketts, Pete [R-NE]
NE • R
Sponsored 6/17/2025
Roll Call Votes
house vote • 7/17/2025
On Passage
Yes: 308 • No: 122
senate vote • 6/17/2025
On Passage of the Bill S. 1582
Yes: 68 • No: 30
senate vote • 6/12/2025
On the Cloture Motion S. 1582
Yes: 67 • No: 27
senate vote • 5/21/2025
On the Motion to Proceed S. 1582
Yes: 69 • No: 31
senate vote • 5/19/2025
On Cloture on the Motion to Proceed S. 1582
Yes: 66 • No: 32
senate vote • 5/8/2025
On Cloture on the Motion to Proceed S. 1582
Yes: 48 • No: 49