GENIUS Act Sets Federal Framework for Payment Stablecoins in US

The US Congress has established a comprehensive federal framework for payment stablecoins through the GENIUS Act, signed into law on July 18, 2025.

The framework requires issuers to hold at least $1 in permitted reserves for every $1 of stablecoins issued, with permitted reserves limited to low-risk assets such as Treasury bills and insured bank deposits.

Nonbank issuers with under $10 billion in outstanding stablecoins may operate under a state regime if that state's framework is substantially similar to the federal requirements, as determined by the Stablecoin Certification Review Committee.