GENIUS Act Sets Federal Rules for Payment Stablecoin Issuers

The GENIUS Act has established a federal framework for payment stablecoin issuers in the US. The law, which became Public Law 119-27 on July 18, 2025, sets rules for reserve, redemption, supervision, and enforcement requirements.

Issuers of payment stablecoins must maintain identifiable reserves backing outstanding coins on an 'at least 1 to 1 basis'. Eligible reserves include US currency, certain bank deposits, Treasury securities with maturities of 93 days or less, specified repurchase agreements, and government money-market funds.

The GENIUS Act takes effect on the earlier of 18 months after enactment or 120 days after federal regulators issue final implementing regulations. The a16z Crypto Korea Summit in Seoul, scheduled for October 1, will focus on institutional finance moving onchain, with Miles Jennings as the keynote speaker.