"GENIUS Act Enacted, Establishing a Regulatory Framework for Payment Stablecoins Issued or Sold in the United States"

This article comes from Greenberg Traurig, LLP.

On July 18, 2025, President Donald Trump signed the “Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025” (the GENIUS Act or the Act) into law. The House of Representatives passed the Act on July 17, 2025, by a vote of 308-122, following Senate passage on June 17, 2025.

The GENIUS Act establishes a regulatory framework for payment stablecoins and their issuers, with federal oversight of issuers with over $10 billion in consolidated payment stablecoin issuance and state oversight of smaller issuers.

At the federal level, the GENIUS Act carves out stablecoins from the definitions of a “security” or “commodity,” removing Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) jurisdiction, establishing instead that payment stablecoins are subject to regulation by, inter alia, the Federal Deposit Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC), and the Federal Reserve Board.

The GENIUS Act provides stablecoin issuers a regulatory framework that imposes among other things, authorization, reserve requirements, audits, and consumer disclosure requirements.

The GENIUS Act contains amendments to the Bankruptcy Code to provide protections for payment stablecoin holders in the event of a permitted payment stablecoin issuer’s insolvency, including a priority claim that is senior to any other claims against the stablecoin issuer against reserves, and, to the extent the reserves are insufficient, a superpriority claim against the stablecoin issuer for any deficiency, senior to all other claims, including administrative claims.

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GENIUS Act Enacted, Establishing a Regulatory Framework for Payment Stablecoins Issued or .

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