GENIUS Act
Web3 / regulatory frameworks
The Guiding and Establishing National Innovation for US Stablecoins Act, the first piece of major federal cryptocurrency legislation enacted in the United States, signed into law by President Trump on July 18, 2025 (Pub. L. 119-27). The Act establishes a comprehensive federal regulatory framework for payment stablecoins issued in US dollars, requiring issuers to maintain one-to-one reserves in cash or low-risk assets (US Treasuries and equivalents), produce monthly reserve attestations from independent accountants, and comply with anti-money laundering requirements. It creates a dual licensing regime: larger issuers (above a $10 billion threshold) are regulated by the OCC as federal qualified nonbank payment stablecoin issuers, while smaller issuers may operate under state money transmission licensing with federal comparability oversight. Critically, compliant payment stablecoins are explicitly excluded from SEC and CFTC jurisdiction, and stablecoin issuers are not classified as investment companies or broker-dealers. The law takes effect on the earlier of 18 months after enactment (January 2027) or 120 days after implementing regulations are finalized. The bill passed the Senate 68-30 on June 17, 2025 and the House 308-122 on July 17, 2025, with bipartisan support. Example: Circle's USDC and Paxos-issued PYUSD are among the stablecoins most directly affected by the GENIUS Act's framework, as both are dollar-backed payment stablecoins with existing compliance infrastructure. The Act's 18-month implementation window gives issuers time to complete federal licensing applications or establish compliant state-regulated structures before the law's full requirements take effect in January 2027. Why it matters for Web3: The GENIUS Act is the most significant piece of US crypto legislation in history and the culmination of years of industry lobbying for regulatory clarity. By establishing clear rules for stablecoin issuers, explicitly excluding compliant stablecoins from securities law, and creating a defined path to federal licensing, it legitimizes the stablecoin sector and enables banks and financial institutions to issue and hold compliant digital dollars without regulatory ambiguity. It also sets the template for how subsequent digital asset legislation in the US will be structured.
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