General information only. CryptoRegHub provides summaries for informational purposes and does not constitute legal or compliance advice. Always verify with official sources and consult qualified legal counsel before making compliance decisions.
CryptoRegHub provides plain-English summaries of crypto regulations for informational purposes only. This does not constitute legal, compliance, or financial advice. Regulations change frequently — always verify information with official sources and consult qualified legal counsel before making any compliance decisions.
The Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act) was signed into law by President Trump on 18 July 2025, following bipartisan passage — 68-30 in the Senate and 308-122 in the House. It is the first major cryptocurrency legislation enacted in the United States and establishes a comprehensive federal regulatory framework for "payment stablecoins": digital assets designed to maintain a stable value, redeemable at a fixed amount, used for payments or settlement. The Act creates a federal licensing pathway through the OCC for non-bank issuers, and allows subsidiaries of insured depository institutions to issue stablecoins under their existing prudential regulators (FDIC, Federal Reserve, NCUA). Payment stablecoins are explicitly classified as neither securities nor commodities, placing them outside SEC and CFTC jurisdiction. Implementing regulations must be issued by 18 July 2026, with the regime taking full effect by 18 January 2027 (or 120 days after regulations are issued, whichever is earlier).
Applies to any entity wishing to issue a payment stablecoin to US persons. After the effective date, only "permitted payment stablecoin issuers" (PPSIs) may issue payment stablecoins. Three years after enactment (July 2028), digital asset service providers will be prohibited from offering or selling stablecoins issued by non-PPSIs to US persons. Foreign issuers may serve US markets only if their home jurisdiction is certified as having a substantially equivalent regulatory regime by the US Treasury. The Act preempts state chartering/licensing laws for federal PPSIs, but does not preempt state consumer protection laws.
Key requirements for permitted payment stablecoin issuers: (1) 1:1 reserve backing in US dollars or approved low-risk liquid assets (e.g. US Treasury bills, insured deposits). Reserves may not be rehypothecated except in limited defined circumstances. (2) Monthly reserve composition disclosure published on website, independently examined by a registered public accounting firm, with CEO and CFO certification to the primary regulator. (3) Issuers with over USD 50 billion in outstanding issuance must publish audited annual financial statements. (4) Clear and conspicuous redemption policy with timely redemption procedures and fee disclosure. (5) Prohibition on paying interest or yield to stablecoin holders solely for holding the token (yield on other terms by third parties not prohibited). (6) BSA/AML compliance: treated as a financial institution — must maintain AML program, KYC, suspicious activity reporting, OFAC sanctions compliance. (7) Technical capability to block, freeze and burn tokens on lawful order. (8) Tailored capital, liquidity and risk management requirements set by regulators.
Always refer to official sources to confirm current requirements. CryptoRegHub summaries are for general guidance only.
Large fines, licence revocation, or criminal referral risk
This summary is for general informational purposes only and does not constitute legal advice. Always verify with official sources and consult qualified legal counsel.