GENIUS Act Stablecoin Regulation
United States2025PaymentsOverview
Key Obligations
- Stablecoins must be fully backed by high-quality liquid assets (cash, Treasuries)
- Guarantee 1:1 redemption rights for holders
- Obtain federal license/registration (OCC, Federal Reserve, or designated regulator)
- Comply with capital, governance, and risk management standards
- Implement AML/CFT programs under the Bank Secrecy Act
- Provide transparent reserve and risk disclosures
- Undergo independent audits and supervisory reporting
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Related Regulations
FAQ
Is the GENIUS Act now in force?
Yes. It was adopted in 2025 and is now U.S. federal law.
Which entities must comply?
Stablecoin issuers, custodians, payment platforms, exchanges, and financial intermediaries handling stablecoins.
Are stablecoins treated as securities under this Act?
No. Payment stablecoins are classified as a separate regulated category, distinct from securities and commodities.
What risks does the Act address?
Consumer protection, reserve quality, systemic risk, AML/CFT compliance, and financial stability.