Bill > S394

This bill establishes a comprehensive regulatory framework for payment stablecoins in the United States. The GENIUS Act of 2025 creates a new system where only approved entities called "permitted payment stablecoin issuers" can legally issue stablecoins, which are digital assets designed to maintain a stable value relative to a national currency. These issuers must maintain full reserve backing (at least 1-to-1) using high-quality, low-risk assets like US currency, bank deposits, and Treasury bills, and must publicly disclose their reserve composition monthly. The bill establishes two primary paths for becoming a permitted issuer: through federal regulation by entities like the Comptroller of the Currency or through state-level regulatory regimes for smaller stablecoin issuers. The legislation mandates strict oversight, including regular examinations, capital and liquidity requirements, and robust consumer protections. Importantly, the bill clarifies that payment stablecoins are not securities, provides priority treatment for stablecoin holders in case of issuer insolvency, and requires the Treasury to study more complex "endogenously collateralized" stablecoins. The act also aims to promote international interoperability and sets up a system for federal and state regulators to supervise and enforce these new standards, with the goal of creating a safe and innovative environment for stablecoin development in the United States.

Housing and Urban Affairs

https://www.congress.gov/bill/119th-congress/senate-bill/394/all-info