To provide for the regulation of payment stablecoins, and for other purposes.
Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.
Summary
What This Bill Does
The GENIUS Act creates the first comprehensive federal regulatory framework for payment stablecoins - digital currencies designed to maintain a stable value pegged to the US dollar. It requires all stablecoin issuers to obtain federal or state approval, maintain 1-to-1 reserve backing with safe assets like Treasury bills, and comply with anti-money laundering rules.
Who Benefits and How
Cryptocurrency companies and stablecoin issuers gain regulatory clarity and a legal pathway to operate in the US, as payment stablecoins are explicitly exempted from securities laws. Traditional banks benefit from rules protecting their custody activities from burdensome capital requirements. Large stablecoin issuers (over $10 billion) must register federally, creating barriers that may advantage established players.
Who Bears the Burden and How
Smaller cryptocurrency startups face significant compliance costs including reserve requirements, monthly audits, and licensing fees. The SEC loses jurisdiction over stablecoins, reducing its oversight authority. Unauthorized issuers face penalties of $100,000 per day for non-compliance.
Key Provisions
- Requires 1-to-1 reserve backing with Treasury bills, cash, or other safe assets
- Creates federal licensing pathway through OCC and state-level alternatives for smaller issuers
- Explicitly exempts payment stablecoins from securities laws (SEC jurisdiction)
- Gives stablecoin holders priority claims in bankruptcy over other creditors
- Mandates monthly audits and CEO/CFO certifications of reserve reports
Evidence Chain:
This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers.
At a Glance
What This Bill Does
Establishes a comprehensive federal regulatory framework for payment stablecoins, creating licensing requirements for issuers, mandating reserve backing, and explicitly exempting compliant stablecoins from securities laws.
Key Policy Areas
Financial Services, Banking Regulation, Digital Assets, Consumer Protection
Primary Purpose
Establishes a comprehensive federal regulatory framework for payment stablecoins, creating licensing requirements for issuers, mandating reserve backing, and explicitly exempting compliant stablecoins from securities laws.
Policy Domains
Section 2 - Definitions
Identified Gains
Contextual inference, no direct clause citation- Asset-backed stablecoin issuers
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Algorithmic stablecoin projects
Contextual inference, no direct clause citation
Section 6-7 - Supervision and Enforcement
Identified Gains
Contextual inference, no direct clause citation- Large established stablecoin issuers
- State banking regulators
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Non-compliant issuers
- Institution-affiliated parties of violators
Contextual inference, no direct clause citation
Section 4 - Requirements for Issuing Payment Stablecoins
Identified Gains
Contextual inference, no direct clause citation- Stablecoin issuers
- Cryptocurrency companies
- Banks with digital asset custody services
- Treasury securities market
Contextual inference, no direct clause citation
Identified Costs
Contextual inference, no direct clause citation- Securities and Exchange Commission
- Unauthorized stablecoin issuers
- Small cryptocurrency startups
Contextual inference, no direct clause citation
Sponsors
Legislative Progress
IntroducedMr. Hagerty (for himself, Mr. Scott of South Carolina, Mrs. …
Stakeholder Effects
cui bono?How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.
Algorithmic stablecoin projects, Cryptocurrency and stablecoin companies, Cryptocurrency custodians
Stablecoin issuers faces effects in multiple directions
Positive-direction: Cryptocurrency exchanges, Established cryptocurrency companies, Existing stablecoin issuers, Foreign stablecoin issuers in compliant jurisdictions, Small and mid-size stablecoin issuers, US stablecoin issuers seeking international operations
Negative-direction: Cryptocurrency custodians, Large stablecoin issuers over $10B, Non-bank cryptocurrency custodians, Officers and directors of stablecoin issuers, Permitted payment stablecoin issuers, Small stablecoin startups, Unauthorized stablecoin issuers, Unregulated crypto custody providers
Department of the Treasury, Federal Reserve Board, Federal Reserve System
Banks and credit unions offering digital asset custody, Treasury securities market, Trust companies
Positive-direction: Banks and credit unions offering digital asset custody, Treasury securities market, Trust companies
Negative-direction: Unsecured creditors of stablecoin issuers
Public accounting firms, Securities lawyers and compliance firms
Positive-direction: Public accounting firms
Negative-direction: Securities lawyers and compliance firms
Bill Structure & Actor Mappings
Who is "The Secretary" in each section?
- "the_board"
- → Board of Governors of the Federal Reserve System
- "the_comptroller"
- → Comptroller of the Currency
- "the_corporation"
- → Federal Deposit Insurance Corporation
- "the_secretary"
- → Secretary of the Treasury
- "primary_federal_regulator"
- → OCC, FDIC, Fed, or NCUA depending on issuer type
- "the_board"
- → Board of Governors of the Federal Reserve System
- "the_comptroller"
- → Comptroller of the Currency
Note: Primary Federal payment stablecoin regulator varies by entity type: OCC for Federal qualified nonbanks, appropriate Federal banking agency for depository institution subsidiaries, NCUA for credit union subsidiaries.
Key Definitions
Terms defined in this bill
A digital asset designed for payment/settlement that the issuer is obligated to redeem for a fixed amount of monetary value and maintains stable value relative to that fixed amount; excludes national currencies and registered investment company securities.
A subsidiary of an insured depository institution approved under section 5, a Federal qualified nonbank payment stablecoin issuer approved under section 5, or a State qualified payment stablecoin issuer.
Any digital representation of value which is recorded on a cryptographically-secured distributed ledger.
A nonbank entity approved by the primary Federal payment stablecoin regulator, pursuant to section 5, to issue payment stablecoins.
We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.
Learn more about our methodology