United States of America: Guiding and Establishing National Innovation for US Stablecoins Act of 2025 (GENIUS Act of 2025/SB 919) was introduced to Senate

On 10 March 2025, the Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 (GENIUS Act of 2025) (SB 919) was introduced to the United States Senate. The Bill establishes a federal regulatory framework for payment stablecoins, defining key terms such as “payment stablecoin”, “permitted payment stablecoin issuer”, and “Federal qualified nonbank payment stablecoin issuer”. It clarifies that payment stablecoins governed by the Act are not subject to securities or commodities regulation, except where otherwise determined under specific circumstances. The Bill prohibits any person other than a permitted issuer from issuing a payment stablecoin in the United States. Unauthorised stablecoins would be ineligible for use in wholesale payment settlements between banking organisations or within payment infrastructures. Knowingly issuing such stablecoins may result in penalties of up to USD 1'000'000 per violation, imprisonment for up to 5 years, or both. Permitted issuers must maintain one-to-one reserves in specified assets, including United States currency, Treasury bills, and repurchase agreements, and are prohibited from rehypothecating those reserves. The Bill mandates monthly disclosures on reserve composition and redemption practices. Oversight is assigned to designated federal stablecoin regulators, including the Board of Governors of the Federal Reserve System and the Office of the Comptroller of the Currency. Additional provisions address enforcement measures, misrepresentation of insurance status, and liability of institution-affiliated parties. The Bill supports interoperability standards, allows for participation by state-regulated issuers under certain conditions, and includes insolvency protections for stablecoin holders.