Regulation
What is the GENIUS Act? The US Federal Stablecoin Law
The GENIUS Act is the US federal law regulating payment stablecoins, signed in July 2025 with the NPRM published in April 2026.
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The GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins Act) is the first US federal law specifically regulating payment stablecoins. It was passed by Congress and signed by the President in July 2025, after years of iteration from earlier proposals such as the STABLE Act and Lummis-Gillibrand.
The law establishes that only Permitted Payment Stablecoin Issuers (PPSIs) — FDIC-insured banks, non-bank subsidiaries of banks, and qualified federal/state entities — can issue payment stablecoins to the US public. It requires 1:1 reserves in cash and short-term Treasury bills, monthly disclosure of reserve composition, and prohibits uncollateralized algorithmic stablecoins.
In April 2026 the OCC and Federal Reserve published the Notice of Proposed Rulemaking (NPRM) with implementation rules, including capital requirements, orderly resolution, AML/BSA obligations, and a transition regime for existing issuers. Public comment closes in July 2026 and full effectiveness is expected in 2027.
The GENIUS Act coexists with the SEC securities framework for stablecoins deemed securities and with CFTC oversight of stablecoins used in derivatives. Circle, PayPal, and Gemini are among the first to apply for federal licenses.
Key facts
- •Signed by the President in July 2025
- •First US federal law specific to stablecoins
- •NPRM published by OCC and Fed in April 2026
- •Requires 1:1 reserves in cash and short-term T-bills
- •Bans uncollateralized algorithmic stablecoins
- •Permitted issuers: FDIC banks and qualified PPSIs
- •Full effectiveness expected in 2027