PlainBillCongress, translated.Legislation. Context. Public interest.Alternate name Official bill text · Enrolled
Became Public Law No: 119-27.
Congressional Research Service
Version 49 · Public Law · Jul 18, 2025
Guiding and Establishing National Innovation for U.S. Stablecoins Act or the GENIUS Act
This act establishes a regulatory framework for payment stablecoins (digital assets which an issuer must redeem for a fixed value).
Under the act, only permitted issuers may issue a payment stablecoin for use by U.S. persons, subject to certain exceptions and safe harbors. Permitted issuers must be a subsidiary of an insured depository institution, a federal-qualified nonbank payment stablecoin issuer, or a state-qualified payment stablecoin issuer. Permitted issuers must be regulated by the appropriate federal or state regulator. Permitted issuers may choose federal or state regulation; however, state regulation is limited to those with a stablecoin issuance of $10 billion or less.
Showing the opening paragraphs of the official summary.
Permitted issuers must maintain reserves backing the stablecoin on a one-to-one basis using U.S. currency or other similarly liquid assets, as specified. Permitted issuers must also publicly disclose their redemption policy and publish monthly the details of their reserves.
The act specifies requirements for (1) reusing reserves; (2) providing safekeeping services for stablecoins; and (3) supervisory, examination, and enforcement authority over federal-qualified issuers.
The act allows foreign issuers of stablecoins to offer, sell, or make available in the United States stablecoins using digital asset service providers, subject to requirements, including a determination by the Department of Treasury that they are subject to comparable foreign regulations.
Under the act, permitted payment stablecoins are not considered securities or commodities under law. However, permitted issuers are subject to the Bank Secrecy Act for anti-money laundering and related purposes.
(Sec. 3) This section establishes that only payment stablecoin issuers permitted under this act are allowed to issue a payment stablecoin in the United States. Knowing violations of this requirement shall be subject to a fine of up to $1 million for each violation, up to 5 years imprisonment, or both. Treasury may issue regulations establishing limited safe harbors from this requirement that are consistent with the act's purposes, limited in scope, and apply to a de minimus volume of transactions.
Three years after the date of enactment, digital asset service providers are prohibited from offering or selling stablecoins that are not issued by permitted issuers. Providers are also prohibited from offering, selling, or otherwise making available in the United States a foreign-issued payment stablecoin, unless it complies with requirements provided in section 18 of the act.
(Sec. 4) This section establishes requirements for permitted issuers. Issuers must maintain reserves on a one-to-one basis. Reserves must be comprised of
U.S. coins and currency;
demand deposits or shares at an insured depository institution;
certain Treasury acts, notes, or bonds;
money received under certain repurchase agreements or reverse repurchase agreements;
certain investment company securities and money market funds invested in certain approved assets on this list;
similarly liquid federal assets approved by regulators; or
certain listed reserves in tokenized forms.
Issuers must comply with redemption requirements, such as establishing timely redemption procedures and disclosing such procedures and associated fees. Issuers must also report on the monthly composition of the issuer's reserves. These reports must be examined by a registered public accounting firm and certified by the chief executive officer and chief financial officer of the issuer.
The section prohibits the rehypothecation, or reuse, of reserves with limited exceptions.
Primary federal payment stablecoin regulators (federal regulators) and state payment stablecoin regulators (state regulators), where applicable, must issue regulations to implement capital requirements, liquidity reserve standards, reserve asset diversification standards, and risk management standards.
Issuers are subject to the anti-money laundering and counterterrorism requirements that are applicable to financial institutions.
The section sets forth requirements regarding activities of a permitted issuer, including by prohibiting issuers from providing services on the condition that a customer obtains an additional paid product or service from the issuer or a subsidiary.
Large issuers (those with more than $50 billion in consolidated total outstanding issuance) must publish an audited annual financial statement in accordance with generally accepted accounting principles.
The section prohibits a public nonfinancial services company from issuing payment stablecoins unless the company obtains unanimous approval from the Stablecoin Certification Review Committee.
A state qualified payment stablecoin issuer with a consolidated total outstanding issuance of not more than $10 billion may opt for state regulation if such regulation is substantially similar to the federal regulatory framework under this act. If the issuance exceeds that amount, the issuer must transition to federal regulation, receive a waiver from the federal regulator to remain under state regulation, or stop issuing stablecoins until the issuance is under the threshold.
(Sec. 5) This section establishes requirements for stablecoins issued by subsidiaries of insured depository institutions and certain entities chartered by the Office of the Comptroller of the Currency (OCC) to issue payment stablecoins. Federal regulators must establish an application process and a supervision framework for such entities.
The section sets forth requirements for the review of applications, explanations for denials, and an appeals process.
(Sec. 6) This section sets forth supervision, examination, and enforcement requirements for payment stablecoin issuers under federal supervision. The provisions include reporting on financial conditions, risk management, compliance with the act, and compliance with sanctions and anti-money laundering requirements. The section specifies that payment stablecoin issuers with less than $10 billion in consolidated total outstanding issuance are subject to federal supervision if they are not state qualified payment stablecoin issuers.
The section establishes civil penalties for violations of this act that are committed by those subject to federal supervision.
(Sec. 7) This section establishes state regulatory authority over issuers that qualify for and elect state regulation. The Federal Reserve Board may exercise enforcement authority over state issuers in unusual and exigent circumstances. The OCC must exercise enforcement authority over nonbank state issuers in these circumstances.
(Sec. 8) This section requires foreign issuers to comply with the terms of lawful orders to be allowed to offer, sell, or make available for trading a payment stablecoin in the United States. The section sets forth enforcement and appeal provisions. Treasury may waive the prohibition against the secondary trading of foreign payment stablecoins in the United States from noncompliant foreign issuers on a case-by-case basis if certain criteria are met.
(Sec. 9) Treasury must seek public comment regarding methods, techniques, or strategies for financial institutions to detect illicit activities involving digital assets and perform research and risk assessments on such methods, techniques, or strategies. Treasury must report their legislative recommendations to Congress and the Financial Crimes Enforcement Network must issue rules based on the results.
(Sec. 10) This section establishes requirements for custodial or safekeeping services for payment stablecoin reserves, collateral, and the private keys used to issue stablecoins. Among other requirements, such property must be separately accounted for and not comingled with other assets of the custodian.
(Sec. 11) This section addresses the treatment of payment stablecoins and stablecoin issuers in bankruptcy and insolvency proceedings, including their claim priority, conditions for an automatic stay, and the treatment of reserves as property of the estate.
Federal regulators must also report on topics regarding potential insolvency proceedings of issuers.
(Sec. 12) Federal regulators may, if determined necessary after an assessment, prescribe technical standards for issuers to promote compatibility and interoperability with other issuers and the broader digital finance system.
(Sec. 13) This section requires regulators to issue regulations to carry out the act, with federal and state regulators and Treasury coordinating as appropriate.
(Sec. 14) This section requires Treasury to study and report on nonpayment stablecoins, including endogenously collateralized payment stablecoins (a digital asset the originator of which has represented will be converted, redeemed, or repurchased for a fixed amount of monetary value and that relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price).
(Sec. 15) This section requires federal regulators to annually report on payment stablecoin activity trends, the number of payment stablecoin issuer applicants, and the potential financial stability risks to the safety and soundness of the broader financial system posed by payment stablecoin activities.
(Sec. 16) This section defines authorities related to the act, such as by providing that the act does not limit the authority of a depository institution, credit union, national bank, or trust company to issue digital assets to represent deposits or shares.
Federal financial regulators may not require a financial institution to include certain digital assets held in its custody as a liability on financial statements or balance sheets.
(Sec. 17) This section establishes that payment stablecoins issued by permitted issuers are not securities or commodities under federal law.
(Sec. 18) This section provides an exception to the act's prohibition on foreign-issued payment stablecoins. For the exception to apply, foreign issuers must be subject to regulation and supervision by a foreign country that is comparable to the requirements under this act, as determined by Treasury. The foreign issuer must also be registered with the OCC, hold sufficient reserves in a U.S. financial institution (subject to exceptions), and the country where the issuer is domiciled must not be subject to U.S. sanctions.
The section sets forth requirements for Treasury's determination as to whether a foreign country has comparable regulatory and supervisory requirements, including the process of requesting a determination, the deadline for Treasury to render a decision, and the process by which Treasury may rescind a previous determination.
The section also sets forth OCC registration requirements.
Treasury may implement reciprocal or bilateral agreements between the United States and jurisdictions with comparable regulatory requirements.
(Sec. 19) This section requires certain federal employees to disclose holdings over $5,000 of permitted payment stablecoins as part of required financial disclosures.
(Sec. 20) The act takes effect on the earlier of (1) 18 months after the date of enactment, or (2) 120 days after federal regulators issue final regulations implementing the act.
People & committees
Sen. Hagerty, Bill [R-TN] · R–TN
Legislative record
A procedural vote is different from passage. Passage in one chamber does not establish enactment. Explore the glossary.
Became Public Law No: 119-27.
Became Public Law No: 119-27.
Signed by President.
Signed by President.
Presented to President.
Presented to President.
Motion to reconsider laid on the table Agreed to without objection.
On passage Passed by the Yeas and Nays: 308 - 122 (Roll no. 200). (text: CR H3405-3418)
House roll call 200 · Individual votesPassed/agreed to in House: On passage Passed by the Yeas and Nays: 308 - 122 (Roll no. 200).
House roll call 200 · Individual votesConsidered as unfinished business. (consideration: CR H3449-3450)
POSTPONED PROCEEDINGS - At the conclusion of debate on S. 1582, the Chair put the question on passage of the bill and by voice vote, announced that the ayes had prevailed. Ms. Waters demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.
The previous question was ordered pursuant to the rule.
DEBATE - The House proceeded with one hour of debate on S. 1582.
Rule provides for consideration of H.R. 4016, H.R. 3633, H.R. 1919 and S. 1582. The resolution provides for consideration of H.R. 4016 and H.R. 3633 under a structured rule, and H.R. 1919 and S. 1582 under a closed rule, with one hour of general debate on each bill. The resolution provides for a motion to recommit on H.R. 4016, H.R. 3633, and H.R. 1919, and a motion to commit on S. 1582.
Considered under the provisions of rule H. Res. 580. (consideration: CR H3405-3427)
Rule H. Res. 580 passed House.
Rules Committee Resolution H. Res. 580 Reported to House. Rule provides for consideration of H.R. 4016, H.R. 3633, H.R. 1919 and S. 1582. The resolution provides for consideration of H.R. 4016 and H.R. 3633 under a structured rule, and H.R. 1919 and S. 1582 under a closed rule, with one hour of general debate on each bill. The resolution provides for a motion to recommit on H.R. 4016, H.R. 3633, and H.R. 1919, and a motion to commit on S. 1582.
Held at the desk.
Received in the House.
Message on Senate action sent to the House.
Passed Senate with an amendment by Yea-Nay Vote. 68 - 30. Record Vote Number: 318. (text: CR S3419-3432)
Senate roll call 318 · Individual votesPassed/agreed to in Senate: Passed Senate with an amendment by Yea-Nay Vote. 68 - 30. Record Vote Number: 318.
Senate roll call 318 · Individual votesConsidered by Senate. (consideration: CR S3418-3432)
Cloture on the bill, as amended invoked in Senate by Yea-Nay Vote. 67 - 27. Record Vote Number: 312.
Senate roll call 312 · Individual votesConsidered by Senate. (consideration: CR S3366-3367)
Motion by Senator Thune to commit to Senate Committee on Banking, Housing, and Urban Affairs with instructions to report back forthwith with the following amendment (SA 2312) fell when cloture was invoked on amendment SA 2307 in Senate.
Considered by Senate. (consideration: CR S3335-3336)
Motion by Senator Thune to commit to Senate Committee on Banking, Housing, and Urban Affairs with instructions to report back forthwith with the following amendment (SA 2312) made in Senate.
Cloture motion on the bill presented in Senate. (CR S3276)
Considered by Senate. (consideration: CR S3275-3277)
Considered by Senate. (consideration: CR S3155-3156)
Measure laid before Senate by motion. (consideration: CR S3025)
Motion to proceed to consideration of measure agreed to in Senate by Yea-Nay Vote. 69 - 31. Record Vote Number: 263.
Senate roll call 263 · Individual votesMotion to proceed to measure considered in Senate. (CR S3017)
Motion to proceed to measure considered in Senate. (CR S2983)
Motion by Senator Thune to reconsider the vote by which cloture on the motion to proceed to the measure was not invoked (Record Vote No. 240) rendered moot in Senate.
Cloture motion on the motion to proceed rendered moot in Senate.
Second cloture motion on the motion to proceed invoked in Senate by Yea-Nay Vote. 66 - 32. Record Vote Number: 262. (CR S2965)
Senate roll call 262 · Individual votesSecond cloture motion on the motion to proceed presented in Senate. (CR S2947)
Motion to proceed to consideration of measure made in Senate.
Motion to proceed to consideration of measure made in Senate. (CR S2847)
Motion by Senator Thune to reconsider the vote by which cloture on the motion to proceed to the measure was not invoked (Record Vote No. 240) made in Senate.
Cloture on the motion to proceed to the measure not invoked in Senate by Yea-Nay Vote. 48 - 49. Record Vote Number: 240. (CR S2823)
Senate roll call 240 · Individual votesMotion to proceed to consideration of measure made in Senate. (CR S2814)
Cloture motion on the motion to proceed to the measure presented in Senate. (CR S2772)
Motion to proceed to consideration of measure made in Senate. (CR S2772)
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 66.
Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
Introduced in Senate
Primary sources
Text links open the official source. We also preserved the text version used in the PlainBill explanation below.
Source last updated: Jul 29, 2026. Consult Congress.gov for the current record.
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PlainBill explanation
Based on the full Enrolled Bill text. This explanation has not received human editorial review. This overview describes the legislation as enacted, without incorporating later amendments. It does not establish its real-world effects.
The GENIUS Act, enacted in July 2025 and summarized here using its enrolled text, generally allows only approved issuers to create payment stablecoins in the United States—digital tokens used for payments that issuers must exchange for a fixed amount of money—with limited exceptions. Approved U.S. issuers must hold permitted assets worth at least as much as their outstanding tokens, publish monthly information about that backing, and explain cash-out procedures and fees. These tokens have no federal deposit insurance or government guarantee, and approved U.S. issuers and foreign issuers cannot pay holders interest simply for holding or using them. The law generally takes effect 18 months after enactment, or 120 days after federal regulators issue implementing final rules, whichever comes first.
2025-07-18: Became Public Law No: 119-27.
(22) Payment stablecoin The term payment stablecoin— (A) means a digital asset— (i) that is, or is designed to be, used as a means of payment or settlement; and (ii) the issuer of which— (I) is obligated to convert, redeem, or repurchase for a fixed amount of monetary value
It shall be unlawful for any person other than a permitted payment stablecoin issuer to issue a payment stablecoin in the United States.
The Secretary of the Treasury may issue regulations providing safe harbors from subsection (a) that are— (A) consistent with the purposes of the Act; (B) limited in scope; and (C) apply to a de minimis volume of transactions, as determined by the Secretary of the Treasury.
The prohibitions under section 3 shall not apply to a foreign payment stablecoin issuer if all of the following apply:
maintain identifiable reserves backing the outstanding payment stablecoins of the permitted payment stablecoin issuer on an at least 1 to 1 basis
publish the monthly composition of the issuer’s reserves on the website of the issuer
publicly disclose the issuer’s redemption policy, which shall— (i) establish clear and conspicuous procedures for timely redemption of outstanding payment stablecoins
publicly, clearly, and conspicuously disclose in plain language all fees associated with purchasing or redeeming the payment stablecoins
Payment stablecoins shall not be backed by the full faith and credit of the United States, guaranteed by the United States Government, subject to deposit insurance by the Federal Deposit Insurance Corporation, or subject to share insurance by the National Credit Union Administration.
No permitted payment stablecoin issuer or foreign payment stablecoin issuer shall pay the holder of any payment stablecoin any form of interest or yield (whether in cash, tokens, or other consideration) solely in connection with the holding, use, or retention of such payment stablecoin.
This Act, and the amendments made by this Act, shall take effect on the earlier of (1) the date that is 18 months after the date of enactment of this Act; or (2) the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing this Act.
The definition centers on digital assets used or designed for payment or settlement whose issuers are obligated to provide fixed-value conversion, redemption or repurchase and represent or create a reasonable expectation of stable value. It excludes national currencies, deposits and specified securities. Permitted issuers must be formed in the United States and qualify through an approved insured-depository-institution subsidiary, federal route or state route.
(i) that is, or is designed to be, used as a means of payment or settlement; and (ii) the issuer of which— (I) is obligated to convert, redeem, or repurchase for a fixed amount of monetary value, not including a digital asset denominated in a fixed amount of monetary value; and (II) represents that such issuer will maintain, or create the reasonable expectation that it will maintain, a stable value relative to the value of a fixed amount of monetary value
does not include a digital asset that— (i) is a national currency; (ii) is a deposit (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)), including a deposit recorded using distributed ledger technology; or (iii) is a security
The term permitted payment stablecoin issuer means a person formed in the United States that is— (A) a subsidiary of an insured depository institution that has been approved to issue payment stablecoins under section 5; (B) a Federal qualified payment stablecoin issuer; or (C) a State qualified payment stablecoin issuer.
Unauthorized issuance in the United States is prohibited. Beginning three years after enactment, digital asset service providers generally cannot offer or sell nonpermitted payment stablecoins to persons located in the United States, subject to the stated exceptions. Knowing participation in unauthorized issuance carries up to $1 million per violation, five years in prison, or both.
It shall be unlawful for any person other than a permitted payment stablecoin issuer to issue a payment stablecoin in the United States.
Except as provided in subsection (c) and section 18, beginning on the date that is 3 years after the date of enactment of this Act, it shall be unlawful for a digital asset service provider to offer or sell a payment stablecoin to a person in the United States, unless the payment stablecoin is issued by a permitted payment stablecoin issuer.
Whoever knowingly participates in a violation of subsection (a) shall be fined not more than $1,000,000 for each such violation, imprisoned for not more than 5 years, or both.
Treasury may create limited issuance safe harbors for very small transaction volumes or unusual and exigent circumstances. Section 3 excludes specified direct individual transfers, transactions involving receipt between an individual's domestic and foreign accounts offered by the same parent company, and self-custody wallet transactions. Nonpermitted payment stablecoins cannot receive the listed cash-equivalent, collateral or interbank settlement treatment.
The Secretary of the Treasury may issue regulations providing safe harbors from subsection (a) that are— (A) consistent with the purposes of the Act; (B) limited in scope; and (C) apply to a de minimis volume of transactions, as determined by the Secretary of the Treasury.
If the Secretary of the Treasury determines that unusual and exigent circumstances exist, the Secretary may provide limited safe harbors from subsection (a).
This section shall not apply to— (A) the direct transfer of digital assets between 2 individuals acting on their own behalf and for their own lawful purposes, without the involvement of an intermediary; (B) to any transaction involving the receipt of digital assets by an individual between an account owned by the individual in the United States and an account owned by the individual abroad that are offered by the same parent company; or (C) to any transaction by means of a software or hardware wallet that facilitates an individual's own custody of digital assets.
A payment stablecoin that is not issued by a permitted payment stablecoin issuer shall not be— (1) treated as cash or as a cash equivalent for accounting purposes; (2) eligible as cash or as a cash equivalent margin and collateral for futures commission merchants, derivative clearing organizations, broker-dealers, registered clearing agencies, and swap dealers; or (3) acceptable as a settlement asset to facilitate wholesale payments between banking organizations or by a payment infrastructure to facilitate exchange and settlement among banking organizations.
Permitted issuers must maintain at least one-to-one reserves in the permitted asset categories. These include cash, withdrawable bank deposits, short-term Treasury securities and specified other liquid assets. Reserve pledging or reuse is generally prohibited, with exceptions for specified margin obligations, custody services and redemption liquidity.
maintain identifiable reserves backing the outstanding payment stablecoins of the permitted payment stablecoin issuer on an at least 1 to 1 basis
(i) United States coins and currency (including Federal Reserve notes) or money standing to the credit of an account with a Federal Reserve Bank; (ii) funds held as demand deposits (or other deposits that may be withdrawn upon request at any time)
(iii) Treasury bills, notes, or bonds— (I) with a remaining maturity of 93 days or less; or (II) issued with a maturity of 93 days or less
any other similarly liquid Federal Government-issued asset approved by the primary Federal payment stablecoin regulator, in consultation with the State payment stablecoin regulator, if applicable
Reserves required under paragraph (1)(A) may not be pledged, rehypothecated, or reused by the permitted payment stablecoin issuer, either directly or indirectly, except for the purpose of— (A) satisfying margin obligations in connection with investments in permitted reserves under clauses (iv) and (v) of paragraph (1)(A); (B) satisfying obligations associated with the use, receipt, or provision of standard custodial services; or (C) creating liquidity to meet reasonable expectations of requests to redeem payment stablecoins
Permitted issuers must publish timely-redemption procedures, disclose purchase and redemption fees, give at least seven days' notice of fee changes, and publish monthly reserve information. Section 4 requires monthly executive certification and accounting-firm examination, although the examination clause contains an unmatched reference to paragraph (1)(D). Issuers above $50 billion in consolidated outstanding issuance that lack the specified securities-law reporting obligations must publish audited annual financial statements.
establish clear and conspicuous procedures for timely redemption of outstanding payment stablecoins, provided that any discretionary limitations on timely redemptions can only be imposed by a State qualified payment stablecoin regulator, the Corporation, the Comptroller, or the Board, consistent with section 7
publicly, clearly, and conspicuously disclose in plain language all fees associated with purchasing or redeeming the payment stablecoins, provided that such fees can only be changed upon not less than 7 days' prior notice to consumers
publish the monthly composition of the issuer’s reserves on the website of the issuer
A permitted payment stablecoin issuer shall, each month, have the information disclosed in the previous month-end report required under paragraph (1)(D) examined by a registered public accounting firm.
Each month, the Chief Executive Officer and Chief Financial Officer of a permitted payment stablecoin issuer shall submit a certification as to the accuracy of the monthly report
A permitted payment stablecoin issuer with more than $50,000,000,000 in consolidated total outstanding issuance, that is not subject to the reporting requirements under section 13(a) or 15(d) of the Securities and Exchange Act of 1934 (15 U.S.C. 78m, 78o(d)), shall prepare, in accordance with generally accepted accounting principles, an annual financial statement
A registered public accounting firm shall perform an audit of the annual financial statements described in clause (i).
make such audited financial statements publicly available on the website of the permitted payment stablecoin issuer
Regulators must establish tailored capital and risk-management requirements. Consolidated bank capital rules cannot require more capital for the issuer and its assets and operations than the issuer-specific rules require. Federal savings associations receive an exception from the qualified thrift lender test for qualifying reserve assets.
capital requirements applicable to permitted payment stablecoin issuers that— (I) are tailored to the business model and risk profile of permitted payment stablecoin issuers; (II) do not exceed requirements that are sufficient to ensure the ongoing operations of permitted payment stablecoin issuers
appropriate operational, compliance, and information technology risk management principles-based requirements and standards, including Bank Secrecy Act and sanctions compliance standards
shall not be required to hold, with respect to such permitted payment stablecoin issuer and its assets and operations, any amount of regulatory capital in excess of the capital that such permitted payment stablecoin issuer must maintain under the capital requirements issued pursuant to subparagraph (A)(i).
A Federal savings association established under the Home Owners' Loan Act (12 U.S.C. 1461 et seq.) that holds a reserve that satisfies the requirements of section 4(a)(1) shall not be required to satisfy the qualified thrift lender test under section 10(m) of the Home Owners' Loan Act (12 U.S.C. 1467a(m)) with respect to such reserve assets.
Permitted issuers are treated as financial institutions under the Bank Secrecy Act and must comply with sanctions, anti-money-laundering, identification and due-diligence requirements. They may issue stablecoins only if they can and will comply with lawful orders. Compliance-program certifications are due within 180 days after approval and annually afterward; missing certifications can lead to approval revocation.
A permitted payment stablecoin issuer shall be treated as a financial institution for purposes of the Bank Secrecy Act, and as such, shall be subject to all Federal laws applicable to a financial institution located in the United States relating to economic sanctions, prevention of money laundering, customer identification, and due diligence
A permitted payment stablecoin issuer may issue payment stablecoins only if the issuer has the technological capability to comply, and will comply, with the terms of any lawful order.
Not later than 180 days after the approval of an application, and on an annual basis thereafter, each permitted payment stablecoin issuer shall submit to its primary Federal payment stablecoin regulator, or in the case of a State qualified payment stablecoin issuer its State payment stablecoin regulator, a certification that the issuer has implemented anti-money laundering and economic sanctions compliance programs
The primary Federal payment stablecoin regulator or State payment stablecoin regulator of a permitted payment stablecoin issuer that does not submit a certification pursuant to paragraph (1) may revoke the approval of the payment stablecoin issuer under this section.
Permitted issuer activities are limited principally to issuance, redemption, reserves, custody and supporting activities, with additional authorized activities subject to stated safeguards. Permitted issuers generally cannot condition services on buying another paid product or avoiding competitors. Permitted and foreign issuers cannot pay interest or yield solely for holding, using or retaining a payment stablecoin.
A permitted payment stablecoin issuer may only— (i) issue payment stablecoins; (ii) redeem payment stablecoins; (iii) manage related reserves, including purchasing, selling, and holding reserve assets or providing custodial services for reserve assets, consistent with State and Federal law; (iv) provide custodial or safekeeping services for payment stablecoins, required reserves, or private keys of payment stablecoins, consistent with this Act; and (v) undertake other activities that directly support any of the activities described in clauses (i) through (iv).
activities incidental thereto, that are authorized by the primary Federal payment stablecoin regulator or the State payment stablecoin regulator, as applicable, consistent with all other Federal and State laws, provided that the claims of payment stablecoin holders rank senior to any potential claims of non-stablecoin creditors with respect to the reserve assets
A permitted payment stablecoin issuer may not provide services to a customer on the condition that the customer obtain an additional paid product or service from the permitted payment stablecoin issuer, or any of its subsidiaries, or agree to not obtain an additional product or service from a competitor.
may by regulation or order, permit such exceptions to subparagraph (A) as the Board considers will not be contrary to the purpose of this Act.
No permitted payment stablecoin issuer or foreign payment stablecoin issuer shall pay the holder of any payment stablecoin any form of interest or yield (whether in cash, tokens, or other consideration) solely in connection with the holding, use, or retention of such payment stablecoin.
Permitted issuers cannot use government-related terms such as United States, United States Government or USG in stablecoin names, or market a stablecoin so a reasonable person would perceive it as legal tender, U.S.-issued, or government-guaranteed or approved. Abbreviations directly related to the pegged currency, such as USD, are excepted. Separately, marketing a product in the United States as a payment stablecoin is unlawful unless it is issued pursuant to the Act. Knowing and willful participation in that marketing violation carries a Treasury fine of up to $500,000 per violation; acts arising from a common or substantially overlapping cause, or the same statement or publication, count as a single violation.
A permitted payment stablecoin issuer may not— (i) use any combination of terms relating to the United States Government, including United States, United States Government, and USG in the name of a payment stablecoin; or (ii) market a payment stablecoin in such a way that a reasonable person would perceive the payment stablecoin to be— (I) legal tender, as described in section 5103 of title 31, United States Code; (II) issued by the United States; or (III) guaranteed or approved by the Government of the United States.
Abbreviations directly relating to the currency to which a payment stablecoin is pegged, such as USD, are not subject to the prohibitions in subparagraph (A).
It shall be unlawful to market a product in the United States as a payment stablecoin unless the product is issued pursuant to this Act.
Whoever knowingly and willfully participates in a violation of subparagraph (A) shall be fined by the Department of the Treasury not more than $500,000 for each such violation.
For purposes of determining the number of violations for which to impose penalties under subparagraph (B), separate acts of noncompliance are a single violation when the acts are the result of— (i) a common or substantially overlapping originating cause; or (ii) the same statement or publication.
Public companies mainly engaged outside finance, and their wholly or majority owned subsidiaries or affiliates, need unanimous committee approval to issue stablecoins. Approval requires financial-risk findings, restrictions on using transaction data without consumer consent, and compliance with the ban on tying products together. The text extends restrictions to nonfinancial companies domiciled outside the United States and its territories and permits specified information sharing for legal compliance, investigations and government or judicial process.
A public company that is not predominantly engaged in 1 or more financial activities, and its wholly or majority owned subsidiaries or affiliates, may not issue a payment stablecoin unless the public company obtains a unanimous vote of the Stablecoin Certification Review Committee
(I) it will not pose a material risk to the safety and soundness of the United States banking system, the financial stability of the United States, or the Deposit Insurance Fund; (II) the public company will comply with data use limitations providing that, unless the public company receives consent from the consumer, nonpublic personal information obtained from stablecoin transaction data may not be— (aa) used to target, personalize, or rank advertising or other content; (bb) sold to any third party; or (cc) shared with non-affiliates; and (III) the public company and the affiliates of the public company will comply with the tying prohibitions under paragraph (8).
Any company not domiciled in the United States or its Territories that is not predominantly engaged in 1 or more financial activities, may not issue a payment stablecoin unless the public company obtains a unanimous vote of the Stablecoin Certification Review Committee
The prohibition under clause (i) against the sharing of consumer information shall not apply to sharing of such information— (I) to comply with Federal, State, or local laws, rules, and other applicable legal requirements; (II) to comply with a properly authorized civil, criminal, or regulatory investigation, subpoena, or summons by a Federal, State, or local authority; or (III) to respond to judicial process or a government regulatory authority having jurisdiction over the public company.
State-qualified issuers with no more than $10 billion outstanding may choose a substantially similar state regime, subject to certification review. Above that threshold, issuers generally must transition to federal oversight within 360 days or stop new issuance from the date they reach the threshold until below it. Waivers are available, including presumptive approval for issuers supervised under certain previously established state regimes, subject to the stated grounds for rebuttal.
a State qualified payment stablecoin issuer with a consolidated total outstanding issuance of not more than $10,000,000,000 may opt for regulation under a State-level regulatory regime, provided that the State-level regulatory regime is substantially similar to the Federal regulatory framework under this Act.
not later than 1 year after the effective date of this Act, a State payment stablecoin regulator shall submit to the Stablecoin Certification Review Committee an initial certification
A State qualified payment stablecoin issuer not described in paragraph (1) with a payment stablecoin with a consolidated total outstanding issuance of more than $10,000,000,000 shall— (A) not later than 360 days after the payment stablecoin reaches such threshold, transition to the Federal regulatory framework under subsection (a) administered by the relevant State payment stablecoin regulator and the Comptroller, acting in coordination; or (B) beginning on the date the payment stablecoin reaches such threshold, cease issuing new payment stablecoins until the payment stablecoin is under the $10,000,000,000 consolidated total outstanding issuance threshold.
the applicable primary Federal payment stablecoin regulator may permit a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of more than $10,000,000,000 to remain solely supervised by a State payment stablecoin regulator.
A State qualified payment stablecoin issuer supervised by a State payment stablecoin regulator that has established a prudential regulatory regime (including regulations and guidance) for the supervision of digital assets or payment stablecoins before the 90-day period ending on the date of enactment of this Act that has been certified pursuant to subsection (c) and has approved 1 or more issuers to issue payment stablecoins under the supervision of such State payment stablecoin regulator, shall be presumptively approved for a waiver under this paragraph, unless the Federal payment stablecoin regulator finds, by clear and convincing evidence, that the requirements of subparagraph (B) are not substantially met with respect to that issuer or that the issuer poses significant safety and soundness risks to the financial system of the United States.
Payment stablecoins receive no federal guarantee or deposit or share insurance, and claims otherwise are prohibited. Felony convictions involving the listed offenses bar service as an issuer's officer or director. The text preserves ethics restrictions and states that members of Congress and senior executive officials cannot issue payment stablecoins while in public service.
Payment stablecoins shall not be backed by the full faith and credit of the United States, guaranteed by the United States Government, subject to deposit insurance by the Federal Deposit Insurance Corporation, or subject to share insurance by the National Credit Union Administration.
It shall be unlawful to represent that payment stablecoins are backed by the full faith and credit of the United States, guaranteed by the United States Government, or subject to Federal deposit insurance or Federal share insurance.
No individual who has been convicted of a felony offense involving insider trading, embezzlement, cybercrime, money laundering, financing of terrorism, or financial fraud may serve as— (A) an officer of a payment stablecoin issuer; or (B) a director of a payment stablecoin issuer.
existing Office of Government Ethics laws and the ethics rules of the Senate and the House of Representatives prohibit any member of Congress or senior executive branch official from issuing a payment stablecoin during their time in public service.
Federal regulators must decide substantially complete applications within 120 days; failure to decide a complete application on time results in deemed approval. Denial must rest on unsafe or unsound activities under the statutory factors. Issuance on an open, public or decentralized network is not a valid ground for denial. Applicants may appeal denials through a hearing process.
Not later than 120 days after receiving a substantially complete application under subsection (a), a primary Federal payment stablecoin regulator shall render a decision on the application.
If a primary Federal payment stablecoin regulator fails to render a decision on a complete application within the time period specified in paragraph (1), the application shall be deemed approved.
shall only deny a substantially complete application received under subsection (a) if the regulator determines that the activities of the applicant would be unsafe or unsound based on the factors described in subsection (c).
The issuance of a payment stablecoin on an open, public, or decentralized network shall not be a valid ground for denial
the applicant may request, in writing, an opportunity for a written or oral hearing before the primary Federal payment stablecoin regulator to appeal the denial.
Regulators may waive requirements for up to 12 months from the effective date for specified applicants with pending applications. Federal approval supersedes state issuer-licensing requirements, while preserving the stated authority over state-chartered institutions and their subsidiaries.
The primary Federal payment stablecoin regulators may waive the application of the requirements of this Act for a period not to exceed 12 months beginning on the effective date of this Act, with respect to— (1) a subsidiary of an insured depository institution, if the insured depository institution has an application pending for the subsidiary to become a permitted payment stablecoin issuer on that effective date; or (2) a Federal qualified payment stablecoin issuer with a pending application on that effective date.
The provisions of this section supersede and preempt any State requirement for a charter, license, or other authorization to do business with respect to a Federal qualified payment stablecoin issuer or subsidiary of an insured depository institution or credit union that is approved under this section to be a permitted payment stablecoin issuer.
Nothing in this subsection shall preempt or supersede the authority of a State to charter, license, supervise, or regulate an insured depository institution or credit union chartered in such State or to supervise a subsidiary of such insured depository institution or credit union
Federal supervision includes reports and examinations. Section 6 authorizes issuance prohibitions, corrective orders and removal of affiliated personnel under specified violation standards. Its civil penalties include up to $100,000 per day for material violations, with an additional tier for knowing violations. Section 6(b) expressly excludes state-qualified issuers.
Each permitted payment stablecoin issuer described in paragraph (1) shall, upon request, submit to the appropriate primary Federal payment stablecoin regulator a report
The appropriate primary Federal payment stablecoin regulator shall examine a permitted payment stablecoin issuer described in paragraph (1)
may prohibit the permitted payment stablecoin issuer from issuing payment stablecoins
(A) cease and desist from such violation or practice; or (B) take affirmative action to correct the conditions resulting from any such violation or practice.
may remove an institution-affiliated party of the permitted payment stablecoin issuer from the position or office of that institution-affiliated party or prohibit further participation
a permitted payment stablecoin issuer or institution-affiliated party of such permitted payment stablecoin issuer that materially violates this Act or any regulation or order issued under this Act
shall be liable for a civil penalty of not more than $100,000 for each day during which the violation continues.
who knowingly participates in a violation of any provision of this Act, or any regulation or order issued under this Act, shall be liable for a civil penalty of not more than an additional $100,000 for each day during which the violation continues.
Notwithstanding anything in this subsection to the contrary, this subsection shall not apply to a State qualified payment stablecoin issuer.
States supervise and enforce requirements for their state-qualified issuers. In unusual and exigent circumstances, the Federal Reserve may intervene, and the Comptroller must act against nonbank state-qualified issuers, subject to statutory conditions and at least 48 hours' written notice to the state regulator. The emergency-review provisions provide for directives to lapse if the relevant federal regulator does not respond within 10 days after receiving the specified objection; the Comptroller provision inconsistently names federal-qualified issuers.
A State payment stablecoin regulator shall have supervisory, examination, and enforcement authority over all State qualified payment stablecoin issuers of such State.
under unusual and exigent circumstances that the Board determines to exist, the Board may, after not less than 48 hours' prior written notice to the applicable State payment stablecoin regulator, take an enforcement action
under unusual and exigent circumstances determined to exist by the Comptroller, the Comptroller shall, after not less than 48 hours' prior written notice to the applicable State payment stablecoin regulator, take an enforcement action against a State qualified payment stablecoin issuer that is a nonbank entity
If, after 10 days after the receipt of a response described in subclause (I), the Board does not affirm, modify, or rescind the directive, the directive shall automatically lapse.
After a directive described in subparagraph (C) is issued, the applicable Federal qualified payment stablecoin issuer, or any institution-affiliated party of the Federal qualified payment stablecoin issuer subject to the directive, may object and present to the Comptroller, in writing, the reasons that the directive should be modified or rescinded.
If, after 10 days after the receipt of a response described in subclause (I), the Comptroller does not affirm, modify, or rescind the directive, the directive shall automatically lapse.
Section 7(f)'s host-state-law framework applies only to an out-of-state state-qualified issuer authorized by a state with a section 4(c) certification in place. Host-state laws, including consumer-protection laws, apply to its activities only to the same extent as they apply to an out-of-state federal-qualified issuer; host-state issuer-licensing requirements are excluded. When a host-state law does not apply under this rule, home-state law governs those activities. The subsection also preserves state consumer-protection laws and remedies, except laws concerning authorization to operate as a permitted issuer, subject to these stated rules.
This subsection shall only apply to an out-of-State State qualified payment stablecoin issuer chartered, licensed, or otherwise authorized to do business by a State that has a certification in place pursuant to section 4(c) of this Act.
the laws of a host State, including laws relating to consumer protection, shall only apply to the activities conducted in the host State by an out-of-State State qualified payment stablecoin issuer to the same extent as such laws apply to the activities conducted in the host State by an out-of-State Federal qualified payment stablecoin issuer.
The laws applicable to an out-of-State qualified payment stablecoin issuer under paragraph (1) exclude host State laws governing the chartering, licensure, or other authorization to do business in the host State as a permitted payment stablecoin issuer pursuant to this Act.
If any host State law is determined not to apply under paragraph (1), the laws of the home State of the State qualified payment stablecoin issuer shall govern the activities of the permitted payment stablecoin issuer conducted in the host State.
Except for State laws relating to the chartering, licensure, or other authorization to do business as a permitted payment stablecoin issuer, nothing in this Act shall preempt State consumer protection laws, including common law, and the remedies available thereunder.
Foreign issuers must have the technological capability to comply, and comply, with lawful orders for their stablecoins to be publicly offered, sold or made available for trading in the United States through digital asset service providers. After a noncompliance notice and 30 days without compliance, Treasury generally must announce a secondary-trading ban effective 30 days later. The ban ends when Treasury determines the issuer is no longer noncompliant.
A payment stablecoin that is issued by a foreign payment stablecoin issuer may not be publicly offered, sold, or otherwise made available for trading in the United States by a digital asset service provider unless the foreign payment stablecoin issuer has the technological capability to comply and complies with the terms of any lawful order.
If a foreign payment stablecoin issuer does not come into compliance with the lawful order within 30 days from the date of issuance of the written notice described in subsection (a), except as provided in subsection (c), the Secretary of the Treasury shall
issue a notification in the Federal Register prohibiting digital asset service providers from facilitating secondary trading of payment stablecoins issued by the foreign payment stablecoin issuer in the United States.
shall become effective on the date that is 30 days after the date of issue of notification of the prohibition in the Federal Register.
shall expire upon the Secretary of the Treasury’s determination that the foreign payment stablecoin issuer is no longer noncompliant.
Service providers that knowingly violate the secondary-trading ban can face up to $100,000 per violation per day. Foreign issuers that knowingly continue public offers in the United States after publication of their noncompliance designation can face up to $1 million per violation per day. Waivers cover specified financial-system, remediation, national-security, intelligence and law-enforcement circumstances. The designated congressional committee leaders must receive a report within seven days after a waiver or license.
Any digital asset service provider that knowingly violates a prohibition under paragraph (1)(B) shall be subject to a civil monetary penalty of not more than $100,000 per violation per day.
Any foreign payment stablecoin issuer that knowingly continues to publicly offer a payment stablecoin in the United States after publication of the determination of noncompliance under paragraph (1)(A) shall be subject to a civil monetary penalty of not more than $1,000,000 per violation per day
(A) prohibiting secondary trading would adversely affect the financial system of the United States; or (B) the foreign payment stablecoin issuer is taking tangible steps to remedy the failure to comply with the lawful order
may waive the application of the secondary trading restrictions under subsection (b)(1)(B) if the Secretary of the Treasury determines that the waiver is in the national security interest of the United States.
The head of a department or agency may waive the application of this section with respect to— (A) activities subject to the reporting requirements under title V of the National Security Act of 1947 (50 U.S.C. 3091 et seq.), or any authorized intelligence activities of the United States; or (B) activities necessary to carry out or assist law enforcement activity of the United States.
Not later than 7 days after issuing a waiver or a license under paragraph (1), (2), or (3), the Secretary of the Treasury shall submit to the chairs and ranking members of the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, a report
Treasury must seek public comment and research new methods for detecting digital-asset crime, considering costs, privacy, cybersecurity and effectiveness. A congressional report is due within 180 days after enactment. The Financial Crimes Enforcement Network must issue guidance and conduct notice-and-comment rulemaking within three years.
Beginning on the date that is 30 days after the date of enactment of this Act, and for a period of 60 days thereafter, the Secretary of the Treasury shall seek public comment
the Secretary of the Treasury shall conduct research on the innovative or novel methods, techniques, or strategies
(B) Costs to regulated financial institutions. (C) The amount and sensitivity of information that is collected or reviewed. (D) Privacy risks associated with the information that is collected or reviewed. (E) Operational challenges and efficiency considerations. (F) Cybersecurity risks. (G) Effectiveness of methods, techniques, or strategies at mitigating illicit finance.
Not later than 180 days after the date of enactment of this Act, the Secretary of the Treasury shall submit to the chairs and ranking members of the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report
Not later than 3 years after the date of enactment of this Act, the Financial Crimes Enforcement Network shall issue public guidance and notice and comment rulemaking, based on the results of the research and risk assessments required under this section
Covered custody businesses must have qualifying regulatory supervision or regulation and protect customer property from their own creditors. Assets generally must be separately accounted for and segregated, with exceptions including pooled customer accounts and transaction settlement. Customer stablecoin claims have priority over claims other than those of another customer for stablecoins held by the custodian, unless the customer expressly consents to another claim's priority. Merely supplying self-custody hardware or software does not trigger these requirements.
A person may only engage in the business of providing custodial or safekeeping services for the payment stablecoin reserve, the payment stablecoins used as collateral, or the private keys used to issue permitted payment stablecoins if the person— (1) is subject to
supervision or regulation by a primary Federal payment stablecoin regulator
supervision by a State bank supervisor
take such steps as are appropriate to protect the payment stablecoins, private keys, cash, and other property of a customer from the claims of creditors of the person.
shall be separately accounted for by a person described in subsection (a) and shall be segregated from and not be commingled with the assets of the person.
may, for convenience, be commingled and deposited in an omnibus account
necessary to transfer, adjust, or settle a transaction or transfer of assets may be withdrawn and applied to such purposes
the claims of the customer against such person with respect to such payment stablecoins shall have priority over the claims of any person other than the claims of another customer with respect to payment stablecoins held by such person described in subsection (a), unless the customer expressly consents to the priority of such other claim.
The requirements of this section shall not apply to any person solely on the basis that such person engages in the business of providing hardware or software to facilitate a customer’s own custody or safekeeping
In issuer insolvency, stablecoin holders receive proportional priority over required reserves. If required reserves are insufficient, remaining stablecoin claims receive first priority against the bankruptcy estate only to the extent compliance would have required additional reserves. Required reserves are excluded from estate property but remain subject to the bankruptcy stay.
the claim of a person holding payment stablecoins issued by the permitted payment stablecoin issuer shall have priority, on a ratable basis with the claims of other persons holding such payment stablecoins, over the claims of the permitted payment stablecoin issuer and any other holder of claims against the permitted payment stablecoin issuer, with respect to required payment stablecoin reserves
any such remaining claim arising from a person's holding of a payment stablecoin issued by the permitted payment stablecoin issuer shall be a claim against the estate and shall have first priority over any other claim, including over any expenses and claims that have priority under that subsection, to the extent compliance with section 4 of the GENIUS Act would have required additional reserves to be maintained
required payment stablecoin reserves under section 4 of the GENIUS Act, provided that notwithstanding the exclusion of such reserves from the property of the estate, section 362 of this title shall apply to such reserves.
Section 11 adds a process for court-authorized reserve distributions after an issuer's motion and attestation, with a best-efforts target of 14 days after the required hearing. Depository institutions follow applicable regulatory resolution processes; subsidiaries and nonbanks may qualify as bankruptcy debtors. Regulators must report on insolvency gaps within three years after enactment.
if the court finds, subject to the motion and attestation of the permitted payment stablecoin issuer, which shall be filed on the petition date or as soon as practicable thereafter, there are payment stablecoin reserves available for distribution on a ratable basis to similarly situated payment stablecoin holders, provided that the court shall use best efforts to enter a final order to begin distributions under this paragraph not later than 14 days after the date of the required hearing.
A depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) shall be resolved by the Federal Deposit Insurance Corporation, National Credit Union Administration, or State payment stablecoin regulator, as applicable.
A subsidiary of a depository institution (as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813)) or a nonbank entity may be considered a debtor under title 11, United States Code.
existing gaps in the bankruptcy laws and rules for permitted payment stablecoin issuers
Not later than 3 years after the date of enactment of this Act, the primary Federal payment stablecoin regulators shall submit
Federal regulators must assess interoperability and may prescribe standards if necessary, after consulting technical and state regulatory bodies. Issuing standards is discretionary.
The primary Federal payment stablecoin regulators, in consultation with the National Institute of Standards and Technology, other relevant standard-setting organizations, and State bank and credit union regulators, shall assess and, if necessary, may
prescribe standards for permitted payment stablecoin issuers to promote compatibility and interoperability with— (1) other permitted payment stablecoin issuers; and (2) the broader digital finance ecosystem, including accepted communications protocols and blockchains, permissioned or public.
Section 13 requires implementing regulations within one year after enactment through notice-and-comment rulemaking. Federal banking agencies must report on those regulations within 180 days after the Act's effective date.
Not later than 1 year after the date of enactment of this Act, each primary Federal payment stablecoin regulator, the Secretary of the Treasury, and each State payment stablecoin regulator shall promulgate regulations to carry out this Act through appropriate notice and comment rulemaking.
Not later than 180 days after the effective date of this Act, each Federal banking agency shall submit
a report that confirms and describes the regulations promulgated to carry out this Act.
Treasury must study non-payment stablecoins and report within 365 days after enactment. The study includes stablecoins supported solely by another digital asset created or maintained by the same originator.
shall carry out a study of non-payment stablecoins, including endogenously collateralized payment stablecoins.
Not later than 365 days after the date of the enactment of this Act, the Secretary of the Treasury shall provide
the term endogenously collateralized payment stablecoin means any digital asset— (1) the originator of which has represented will be converted, redeemed, or repurchased for a fixed amount of monetary value; and (2) that relies solely on the value of another digital asset created or maintained by the same originator to maintain the fixed price.
Annual federal reports on industry trends, application outcomes and potential financial-stability risks begin one year after enactment. The Financial Stability Oversight Council must incorporate their findings into its annual report.
Beginning on the date that is 1 year after the date of enactment of this Act, and annually thereafter
(1) a summary of trends in payment stablecoin activities; (2) a summary of the number of applications for approval as a permitted payment stablecoin issuer under section 5, including aggregate approvals and rejections of applications; and (3) a description of the potential financial stability risks posed to the safety and soundness of the broader financial system by payment stablecoin activities.
The Financial Stability Oversight Council shall incorporate the findings in the report under subsection (a) into the annual report of the Council
Section 16 preserves otherwise lawful banking activities involving digital deposits, distributed-ledger records and stablecoin custody. It also authorizes entities regulated by the primary federal payment stablecoin regulators to undertake the stablecoin activities and investments contemplated by the Act, and requires those regulators to review existing guidance and regulations.
Nothing in this Act may be construed to limit the authority of a depository institution, Federal credit union, State credit union, national bank, or trust company to engage in activities permissible pursuant to applicable State and Federal law
(1) accepting or receiving deposits or shares (in the case of a credit union), and issuing digital assets that represent those deposits or shares; (2) utilizing a distributed ledger for the books and records of the entity and to effect intrabank transfers; and (3) providing custodial services for payment stablecoins, private keys of payment stablecoins, or reserves backing payment stablecoins.
Entities regulated by the primary Federal payment stablecoin regulators are authorized to engage in the payment stablecoin activities and investments contemplated by this Act
The primary Federal payment stablecoin regulators shall review all existing guidance and regulations
Specified banks, credit unions, trust companies and affiliates cannot be required by the listed regulators to record digital assets held in custody but not owned by them as their own liabilities. The provision limits custody capital requirements to operational-risk needs. State-chartered institutions meeting home-state capital and liquidity conditions may provide money transmission or custody through a permitted issuer subsidiary in any state.
The appropriate Federal banking agency, the National Credit Union Administration (in the case of a credit union), and the Securities and Exchange Commission may not require a depository institution, national bank, Federal credit union, State credit union, or trust company, or any affiliate thereof— (1) to include digital assets held in custody that are not owned by the entity as a liability on the financial statement or balance sheet of the entity
(2) to hold in custody or safekeeping regulatory capital against digital assets and reserves backing such assets described in section 4(a)(1)(A), except as necessary to mitigate against operational risks inherent in custody or safekeeping services
A depository institution chartered under the banking laws of a State, that has a subsidiary that is a permitted payment stablecoin issuer, may engage in the business of money transmission or provide custodial services through the permitted payment stablecoin issuer in any State
required by the laws or regulations of the home State to establish and maintain adequate liquidity
required by the laws or regulations of the home State to establish and maintain adequate capital
Section 17 excludes payment stablecoins issued by permitted issuers from the security definitions in five listed federal statutes and from the Commodity Exchange Act's commodity definition. It also inserts permitted issuers into section 3(c)(3) of the Investment Company Act; the surrounding provision is not reproduced.
The term security does not include a payment stablecoin issued by a permitted payment stablecoin issuer, as such terms are defined in section 2 of the GENIUS Act.
(a) Investment Advisers Act of 1940
(b) Investment Company Act of 1940
(c) Securities Act of 1933
(d) Securities Exchange act of 1934
(e) Securities Investor Protection Act of 1970
The term commodity does not include a payment stablecoin issued by a permitted payment stablecoin issuer, as such terms are defined in section 2 of the GENIUS Act.
in section 3(c)(3) of the Act (15 U.S.C. 80a–3(c)(3)), by inserting any permitted payment stablecoin issuer, as such term is defined in section 2 of the GENIUS Act; after therefor;
Foreign issuers can qualify for an exception to section 3 if they are regulated and supervised under a foreign regime that Treasury determines is comparable, they register with the Comptroller, they maintain reserves in a U.S. financial institution sufficient for U.S. customers' liquidity demands unless a reciprocal arrangement permits otherwise, and their jurisdiction meets the sanctions and money-laundering conditions.
The prohibitions under section 3 shall not apply to a foreign payment stablecoin issuer if all of the following apply
The foreign payment stablecoin issuer is subject to regulation and supervision by a foreign payment stablecoin regulator of a foreign country, a territory of the United States, Puerto Rico, Guam, American Samoa, or the Virgin Islands that has a regulatory and supervisory regime with respect to payment stablecoins that the Secretary of the Treasury determines, pursuant to subsection (b), is comparable to the regulatory and supervisory regime established under this Act, including, in particular, the requirements under section 4(a).
The foreign payment stablecoin issuer is registered with the Comptroller pursuant to subsection (c).
The foreign payment stablecoin issuer holds reserves in a United States financial institution sufficient to meet liquidity demands of United States customers, unless otherwise permitted under a reciprocal arrangement established pursuant to subsection (d).
The foreign country in which the foreign payment stablecoin issuer is domiciled and regulated is not subject to comprehensive economic sanctions by the United States or in a jurisdiction that the Secretary of the Treasury has determined to be a jurisdiction of primary money laundering concern.
Foreign-regime determination requests must be decided within 210 days after receipt of a substantially complete request. Registration is deemed approved after 30 days unless rejected. Foreign issuers remain subject to monitoring and U.S. enforcement jurisdiction. A rescinded comparability determination gives service providers 90 days before continued offers or sales violate section 3. Reciprocal agreements must be published at least 90 days before taking effect.
shall render a decision on the determination not later than 210 days after the receipt of a substantially complete determination request.
shall be deemed approved on the date that is 30 days after the date the Comptroller receives the registration, unless the Comptroller notifies the foreign payment stablecoin issuer in writing that such registration has been rejected.
A foreign payment stablecoin issuer shall (A) be subject to reporting, supervision, and examination requirements as determined by the Comptroller; and (B) consent to United States jurisdiction relating to the enforcement of this Act.
a digital asset service provider shall have 90 days before the offer or sale of a payment stablecoin issued by the foreign payment stablecoin issuer that is the subject of the rescinded determination shall be in violation of section 3.
Not later than 90 days prior to the entry into force of any arrangement or agreement under paragraph (1), the Secretary of the Treasury shall publish the arrangement or agreement in the Federal Register.
Section 19 inserts language about holdings of permitted-issuer payment stablecoins totaling $5,000 or less into 5 U.S.C. 13104(a)(3). The supplied amendment does not reproduce the surrounding disclosure rule, so its full effect cannot be determined from that language alone.
Section 13104(a)(3) of title 5, United States Code, is amended, in the first sentence, by striking , or any deposits and inserting , any payment stablecoins issued by a permitted payment stablecoin issuer aggregating $5,000 or less held, or any deposits.
The Act and its amendments take effect on the earlier of 18 months after enactment or 120 days after the primary federal stablecoin regulators issue any final implementing regulations.
This Act, and the amendments made by this Act, shall take effect on the earlier of (1) the date that is 18 months after the date of enactment of this Act; or (2) the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing this Act.
The official-actions snapshot updated July 29, 2026 records Senate passage with an amendment on June 17, 2025, by 68–30; House passage on July 17 by 308–122; and presidential signature and enactment as Public Law 119-27 on July 18, 2025. The supplied record establishes enactment.
Source snapshot updated 2026-07-29T21:37:07Z.
2025-06-17: Passed Senate with an amendment by Yea-Nay Vote. 68 - 30. Record Vote Number: 318. (text: CR S3419-3432)
2025-07-17: On passage Passed by the Yeas and Nays: 308 - 122 (Roll no. 200). (text: CR H3405-3418)
2025-07-18: Signed by President.
2025-07-18: Became Public Law No: 119-27.
A closer look
Reviewed version: Enrolled Bill. These findings describe provisions and who may benefit; they are not judgments of waste, corruption, or motive.
This review covers the supplied bill text. “None identified” does not rule out provisions in later versions or accompanying reports and disclosures.
Provisions outside the bill’s main subject, or policy changes attached to appropriations.
None identified in the reviewed text
No unrelated provision or appropriations policy rider was identified after reviewing the complete supplied enrolled text. This conclusion is limited to that version and does not establish attachment history or absence in other versions or accompanying materials.
Spending directed to particular recipients or places outside ordinary competitive or formula-based allocation.
None identified in the reviewed text
No congressionally directed spending for a particular recipient or place was identified after reviewing the complete supplied enrolled text. This conclusion is limited to that version and does not establish absence in other versions or formal earmark status in disclosures or accompanying materials not supplied.
Narrow exceptions, exemptions, or preferential treatment that warrant a closer look.
Findings to examine
The supplied enrolled text contains narrow regulatory preferences and exemptions connected to its stablecoin framework. These classifications do not imply improper purpose.
Issuers supervised under qualifying older state regulatory regimes receive presumptive approval to remain solely state-supervised above the $10 billion threshold. Federal regulators must overcome that presumption with clear and convincing evidence under the specified criteria.
the applicable primary Federal payment stablecoin regulator may permit a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of more than $10,000,000,000 to remain solely supervised by a State payment stablecoin regulator.
A State qualified payment stablecoin issuer supervised by a State payment stablecoin regulator that has established a prudential regulatory regime (including regulations and guidance) for the supervision of digital assets or payment stablecoins before the 90-day period ending on the date of enactment of this Act that has been certified pursuant to subsection (c) and has approved 1 or more issuers to issue payment stablecoins under the supervision of such State payment stablecoin regulator, shall be presumptively approved for a waiver under this paragraph, unless the Federal payment stablecoin regulator finds, by clear and convincing evidence, that the requirements of subparagraph (B) are not substantially met with respect to that issuer or that the issuer poses significant safety and soundness risks to the financial system of the United States.
Federal savings associations holding qualifying stablecoin reserves receive an asset-specific exemption from the qualified thrift lender test. The underlying test is not reproduced, so the finding is limited to the express exemption.
A Federal savings association established under the Home Owners' Loan Act (12 U.S.C. 1461 et seq.) that holds a reserve that satisfies the requirements of section 4(a)(1) shall not be required to satisfy the qualified thrift lender test under section 10(m) of the Home Owners' Loan Act (12 U.S.C. 1467a(m)) with respect to such reserve assets.
Specified banking institutions, credit unions, trust companies and their affiliates receive express protection against requirements by the listed regulators to book digital assets held in custody but not owned by them as liabilities or hold custody capital beyond operational-risk needs. This institution-specific relief concerns digital-asset custody, including stablecoins.
The appropriate Federal banking agency, the National Credit Union Administration (in the case of a credit union), and the Securities and Exchange Commission may not require a depository institution, national bank, Federal credit union, State credit union, or trust company, or any affiliate thereof— (1) to include digital assets held in custody that are not owned by the entity as a liability on the financial statement or balance sheet of the entity, including payment stablecoin custody or safekeeping activities; or (2) to hold in custody or safekeeping regulatory capital against digital assets and reserves backing such assets described in section 4(a)(1)(A), except as necessary to mitigate against operational risks inherent in custody or safekeeping services
Full text preserved for this analysis. Legislative record snapshot: Jul 29, 2026. How PlainBill uses AI