Genius Act

The Genius Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is the first major federal law in the United States to create a comprehensive regulatory framework for payment stablecoins. President Donald Trump signed the legislation into law on July 18, 2025. The act establishes the legal category of "payment stablecoins" - digital tokens pegged to a monetary value and intended for payments. It replaces a scattered mix of state and federal guidelines with clear rules for domestic and foreign issuers operating in U.S. markets. The law explicitly clarifies that compliant payment stablecoins are not classified as securities or commodities, keeping them outside the jurisdiction of the SEC and CFTC. KEY REQUIREMENTS 100% Reserve Backing: Issuers must maintain reserves backed one-for-one with safe, highly liquid assets, such as U.S. dollars or short-term Treasury bills. Public Disclosures: Issuers must release monthly, public disclosures detailing the exact composition of their reserve assets.Marketing Restrictions: Companies are strictly prohibited from making false or misleading claims that their stablecoins are backed by the U.S. government, function as legal tender, or carry federal deposit insurance.Consumer Priority: In the event an issuer becomes insolvent, the law prioritizes the claims of stablecoin holders over all other creditors. GOVERNANCE & OVERSIGHT Dual Regulatory Regime: Oversight is split between federal and state authorities depending on the type of institution, licensing choice, and total issuance volume. Federal Regulators: Eligible federal regulatory bodies include the Office of the Comptroller of the Currency (OCC), the Federal Reserve, the Federal Deposit Insurance Corporation (FDIC), and the National Credit Union Administration (NCUA)

Updated Oct 2, 4:32 PM CDT · 4 coins