Signed into law by President Trump on July 18, 2025, the GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) introduces the first comprehensive federal regulatory framework for payment stablecoins in the US. It establishes licensing pathways for issuers—both domestic and foreign—to become Permitted Payment Stablecoin Issuers (PPSIs), subject to federal or state oversight. The act mandates 100% reserve backing with liquid assets, monthly public disclosures, and strict consumer protection rules, while exempting stablecoins from being classified as securities. It phases in over three years, allowing existing issuers time to adapt, and encourages foreign regulators to seek equivalency determinations for market access. The GENIUS Act also aligns state and federal rules, affirms banks' ability to engage in stablecoin-related activities, and enhances anti-money laundering enforcement through Bank Secrecy Act compliance.
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