GENIUS Act

Last updated

GENIUS Act
Great Seal of the United States (obverse).svg
Long titleTo provide for the regulation of payment stablecoins, and for other purposes.
Enacted bythe 119th United States Congress
Citations
Public law Pub. L.   119–27 (text) (PDF)
Legislative history

The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), is a United States federal law that aims to create a comprehensive regulatory framework for stablecoins. [1] Stablecoins are a type of cryptocurrency that are backed by assets considered to be reliable such as a national currency or a commodity. Stablecoins are typically used to transfer funds between different cryptocurrency tokens. [2]

Contents

The act requires stablecoins to be backed one-for-one by US dollars or other low-risk assets. [2] This establishes a stringent standard for purposes of determining reserves, doing audits, and providing transparency for buyers; prior to passage of the GENIUS Act, stablecoins were not required to maintain a 1-to-1 backing with a low-risk asset. The act serves as a first step in establishing dual federal and state supervision and consumer protection. [3]

History

Introduced by Bill Hagerty (R-Tenn.) on May 21, 2025, the GENIUS Act is a bipartisan effort to regulate the stablecoin industry. Its companion legislation is the House's Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, which has similar goals but differs in some details. [4]

The Senate passed the bill on June 17, 2025, with a bipartisan vote of 68–30; [5] the majority of Republicans and about half of Democrats voted in favor. [2]

On July 3, 2025, the House of Representatives announced it would consider the bill during the week of July 14. [6] The House passed the bill on July 17, 2025 and President Donald Trump signed the new legislation into law the next day.

Two other cryptocurrency bills passed in the House but still need Senate approval. [7]

Criticism

The nonprofit consumer organization Consumer Reports argued the bill does not provide enough consumer protection, and allows big tech companies to engage in bank-like activities without being subject to the tougher regulations required of banks. [8]

See also

References

  1. ↑ "S.1582 - GENIUS Act". Congress.gov. Retrieved July 7, 2025.
  2. 1 2 3 "US passes Genius Act, first major national crypto legislation". BBC News. July 17, 2025. Retrieved July 18, 2025.
  3. ↑ "How the GENIUS Act impacts stablecoin tax and accounting reporting standards". Thomson Reuters. June 27, 2025. Retrieved July 7, 2025.
  4. ↑ "What You Need To Know About Incoming Stablecoin Legislation". Arnold & Porter. June 2, 2025. Retrieved July 7, 2025.
  5. ↑ "U.S. Senate: U.S. Senate Roll Call Votes 119th Congress - 1st Session". U.S. Senate. July 18, 2025. Retrieved July 18, 2025.
  6. ↑ "House Announces Week of July 14th as "Crypto Week"". House Committee on Financial Services. July 3, 2025. Retrieved July 7, 2025.
  7. ↑ Yaffe-Bellany, David; Jimison, Robert (July 17, 2025). "Crypto Industry Reaches Milestone With Passage of Genius Act". The New York Times. ISSN   0362-4331 . Retrieved July 18, 2025.
  8. ↑ "Senate OKs GENIUS Act without safeguards needed to protect consumers and the financial system from stablecoin risks". CR Advocacy. Retrieved July 18, 2025.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.