GENIUS Act Stablecoin Regulation
United States
2025
Payments
Overview
The Guaranteeing Essential Non-Fiat Innovation and Upholding Stability (GENIUS) Act, adopted in 2025, is the U.S. federal framework for regulating payment stablecoins. It establishes clear rules to ensure that stablecoins are safe, transparent, fully backed, and redeemable, while encouraging responsible innovation in digital assets.The Act applies to stablecoin issuers, custodians, payment processors, banks, fintechs, and exchanges operating in the United States or serving U.S. customers. It enhances consumer protection, financial stability, and AML/CFT compliance, aligning U.S. oversight with global standards.
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
FAQ
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