A Republican bill with 2 Democratic cosponsors · See all 4 cosponsors
Last activity — Placed on Senate Legislative Calendar under General Orders. Calendar No. 33.
Cleared committee, waiting for its first floor vote
A committee approved it and it is on the calendar of the chamber it started in.
This is further than most bills get, and still no promise of a vote: the calendar is a queue, and the majority leadership decides what is called. A bill can sit here until the Congress ends.
Its path through Congress
- Introduced
- On Calendar
What this bill would do
The "GENIUS Act of 2025" establishes a regulatory framework for the issuance and supervision of payment stablecoins in the United States. It defines various types of permitted issuers, including subsidiaries of insured depository institutions and qualified nonbank entities. The legislation sets strict standards for reserve requirements, mandating a 1-to-1 basis using highly liquid assets like U.S. currency or Treasury bills. It also outlines oversight by both Federal and State regulators and provides specific rules for the treatment of assets during insolvency proceedings. Furthermore, the bill mandates various reporting requirements to Congress and establishes rules for asset custody.
Yes· 3 of 9
- Scored +5
Does this give people more protection from unfair business practices?
The bill enhances consumer protection through strict reserve requirements and priority status for stablecoin holders in insolvency proceedings.
- Scored +4
Does this give the federal government more power?
The bill expands the regulatory authority of the Comptroller and Federal agencies over stablecoins.
- Scored +3
Does this make it easier to do business across state lines?
By clarifying stablecoin regulations, the bill streamlines digital asset movement across states.
The opposite
- Scored -3
Does this protect people from being watched or searched?
The bill requires issuers to have the capability to comply with lawful orders to freeze or burn assets, reducing individual control.
Who it would affect, and how
Potential Positive Impacts for People
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Asset Protection and Transparency: Issuers must maintain reserves on at least a 1 to 1 basis using highly liquid assets such as U.S. currency or Treasury bills to protect the value of the stablecoin (Section 4(a)(1)(A)). Additionally, they must publish monthly reports on their website showing the total number of outstanding stablecoins and the exact composition of their reserves (Section 4(a)(1)(D)).
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Consumer Protections in Insolvency: If an issuer enters insolvency proceedings, the bill ensures that the claims of people holding payment stablecoins have priority over other creditors regarding the required reserves (Section 10(a)).
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Redemption Rights: The bill requires that issuers establish specific procedures to ensure the timely redemption of outstanding payment stablecoins (Section 4(a)(1)(C)).
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Prevention of Deception and Fraudulent Marketing: It is illegal to market a digital asset as a payment stablecoin unless it is issued according to this Act (Section 4(d)(3)). Furthermore, issuers are prohibited from using deceptive names that would lead a reasonable person to believe the digital asset is legal tender or guaranteed by the U.S. Government (Section 4(a)(9)).
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Safeguarding Customer Property: For those using custodial services, the law requires that customer property, including private keys, be treated as belonging to the customer and not the property of the service provider (Section 9(b)(1)).
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Strict Standards for Leadership: To maintain integrity, the bill prohibits individuals convicted of certain financial felonies, such as money laundering or embezzlement, from serving as officers or directors of stablecoin issuers (Section 4(e)(1)).
Potential Negative Impacts for People
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Criminal and Civil Penalties: Issuers or their officers who knowingly participate in the unlawful issuance of stablecoins face significant fines of up to $1,000,000 and potential imprisonment for up to 5 years (Section 3(c)(1)).
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Restrictions on Unlicensed Assets: Any digital asset that is not a permitted payment stablecoin cannot be used as a settlement asset to facilitate wholesale payments between banking organizations, nor can it be treated as cash or used as collateral for certain financial transactions (Section 3(b)).
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Limits on Financial Freedom via Lawful Orders: Issuers are required to have the technological capability to comply with lawful orders to seize, freeze, or burn digital assets, meaning Federal authorities can override a user's control over their assets (Section 4(a)(6)(B)).
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Potential Loss of Access for Foreign Issuers: The Secretary of the Treasury has the power to prohibit digital asset service providers from facilitating the secondary trading of stablecoins issued by foreign entities that fail to comply with lawful orders (Section 8(c)(1)(B)).
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Compliance Burdens for Issuers: Issuers are subject to heavy regulatory requirements, such as requiring monthly certifications by a CEO and CFO, as well as annual financial statement examinations by a registered public accounting firm (Section 4(a)(3)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Tap or hover a score for the reason it gave.
- Governance And Ideology
- Does this give the federal government more power? — The bill expands the regulatory authority of the Comptroller and Federal agencies over stablecoins. Does this make what the government does easier for the public to see? — The bill mandates monthly disclosures of reserve composition on issuer websites. Does this make it easier to do business across state lines? — By clarifying stablecoin regulations, the bill streamlines digital asset movement across states. Does this leave more decisions to the states? — The bill allows for State-qualified stablecoin issuers and State-level regulatory regimes. Does this protect the right to fair treatment by the courts? — The bill includes provisions for administrative and judicial review of regulatory decisions. Does this protect people from being watched or searched? — The bill requires issuers to have the capability to comply with lawful orders to freeze or burn assets, reducing individual control.
- Economy And Finance
- Does this give people more protection from unfair business practices? — The bill enhances consumer protection through strict reserve requirements and priority status for stablecoin holders in insolvency proceedings. Is this likely to grow the economy? — The bill establishes a regulatory framework that could foster innovation in the digital asset economy.
- National Security And Foreign Policy
- Does this make trade with other countries easier? — The bill provides for reciprocal arrangements with foreign jurisdictions to facilitate international transactions.
- Demographic And Interest Groups
- Would business owners be better off under this? — The bill provides a clearer regulatory path for digital asset businesses, though compliance costs are significant.
- 3/18/2025
- Committee on Banking, Housing, and Urban Affairs. Reported by Senator Scott SC, under authority of the order of the Senate of 03/14/2025 with an amendment in the nature of a substitute. Without written report.
- Placed on Senate Legislative Calendar under General Orders. Calendar No. 33.
- 3/13/2025
- Committee on Banking, Housing, and Urban Affairs. Ordered to be reported with an amendment in the nature of a substitute favorably.
- 3/10/2025
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 4 Cosponsors added.
- Introduced in Senate
Angela AlsobrooksDemocrat · Maryland
Kirsten GillibrandDemocrat · New York
Cynthia LummisRepublican · Wyoming
Tim ScottRepublican · South Carolina