# 119-s-394: GENIUS Act of 2025 119-s-394, GENIUS Act of 2025, is a 119th Congress bill sponsored by Sen. Hagerty, Bill [R-TN] (R-TN); status introduced; PRIA reads it as touching household money (as of 2025-12-21). - Canonical: https://policyrisk.com/legislation/119-s-394 - As of: 2025-12-21 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: 119-s-394 - Congress: 119 - Title: GENIUS Act of 2025 - Status: introduced - Introduced: 2025-02-04 - Sponsor: Sen. Hagerty, Bill [R-TN] (R-TN) - Cosponsors: 4 - Policy area: Finance and Financial Sector - Touches household money: yes - Last recorded action: 2025-12-21 ## 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. - 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. ## Cosponsors (4) - Sen. Scott, Tim [R-SC] (R-SC), 2025-02-04T00:00:00.000Z - Sen. Gillibrand, Kirsten E. [D-NY] (D-NY), 2025-02-04T00:00:00.000Z - Sen. Lummis, Cynthia M. [R-WY] (R-WY), 2025-02-04T00:00:00.000Z - Sen. Alsobrooks, Angela D. [D-MD] (D-MD), 2025-02-20T00:00:00.000Z ## Provisions PRIA read - Holder protections, custody, and reserves: benefit, medium. 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. I… - Interoperability, cross-border deals, reports: benefit, medium. 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 update… - Stablecoins excluded from securities: benefit, medium. 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… - Faster licensing and deemed approvals: benefit, low. 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… - New enforcement powers and penalties: cost, medium. 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 participatio… - State opt-in and $10 billion transition: mixed, medium. 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 stablecoin… - Who supervises stablecoin issuers: mixed, medium. 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-l… ## Related bills - 119-s-5025: Lindsey O. Graham Sanctioning Russia Act of 2026 - 119-s-919: GENIUS Act of 2025 - 119-s-4395: Terrorism Risk Insurance Program Reauthorization Act of 2026 - 119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former United States Senator for the State of Kansas. - 119-sres-897: A resolution honoring the life, service, and legacy of the Honorable Jon Llewellyn Kyl, former Senator for the State of Arizona. - 119-sres-801: A resolution honoring the life and legacy of the Honorable Lindsey Olin Graham, a Senator from the State of South Carolina. ## Sources - [119-s-394 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/394) ## Related - [119-s-5025: Lindsey O. Graham Sanctioning Russia Act of 2026](https://policyrisk.com/legislation/119-s-5025) - [119-s-919: GENIUS Act of 2025](https://policyrisk.com/legislation/119-s-919) - [119-s-4395: Terrorism Risk Insurance Program Reauthorization Act of 2026](https://policyrisk.com/legislation/119-s-4395) - [119-sres-913: A resolution relating to the death of the Honorable Nancy Kassebaum, former Uni…](https://policyrisk.com/legislation/119-sres-913) - [119-sres-897: A resolution honoring the life, service, and legacy of the Honorable Jon Llewel…](https://policyrisk.com/legislation/119-sres-897) - [119-sres-801: A resolution honoring the life and legacy of the Honorable Lindsey Olin Graham,…](https://policyrisk.com/legislation/119-sres-801) - [All bills in Congress](https://policyrisk.com/legislation) Source: PRIA, https://policyrisk.com/legislation/119-s-394 (as of 2025-12-21).