Crypto Law Profile
U.S. Public Law 119-27 creates a federal framework for payment stablecoin issuers, reserves, disclosures, AML/sanctions duties, and federal-state oversight.
The Guiding and Establishing National Innovation for U.S. Stablecoins Act, or GENIUS Act, is a United States federal statute for payment stablecoins. Congress.gov identifies S. 1582 as Public Law No. 119-27 after the President signed it on July 18, 2025.
The law has been enacted, but its main operating framework has a conditional effective date: the earlier of January 18, 2027, which is 18 months after enactment, or 120 days after the primary federal payment stablecoin regulators issue final implementing regulations. As of June 2, 2026, implementation remains in active proposed-rule and consultation stages, including Treasury, OCC, FDIC, FinCEN, and NCUA rulemakings.
The GENIUS Act centers on “payment stablecoins,” defined as digital assets designed for payment or settlement where the issuer is obligated to convert, redeem, or repurchase the asset for a fixed amount of monetary value and represents, or creates the reasonable expectation, that it will maintain stable value. The statute excludes national currencies, deposits, and securities from that definition, while preserving specific securities-law treatment rules for qualifying instruments.
The Act limits U.S. issuance to “permitted payment stablecoin issuers,” subject to exceptions and safe harbors. Those issuers are grouped into three core categories: subsidiaries of insured depository institutions approved to issue payment stablecoins, federal qualified payment stablecoin issuers, and state qualified payment stablecoin issuers. This creates a dual federal-state structure rather than a single licensing pathway.
The primary federal payment stablecoin regulators include the Office of the Comptroller of the Currency, Federal Reserve, Federal Deposit Insurance Corporation, and National Credit Union Administration. Treasury chairs the Stablecoin Certification Review Committee, which also includes Federal Reserve and FDIC leadership.
State qualified issuers with no more than $10 billion in consolidated outstanding issuance may use state supervision if the state framework is substantially similar to the federal framework and receives required certification. Issuers that exceed the threshold generally must transition to federal oversight, stop new issuance until below the threshold, or obtain a waiver.
The Act also addresses foreign payment stablecoin issuers. Beginning July 18, 2028, digital asset service providers generally may not offer or sell a payment stablecoin to a U.S. person unless it is issued by a permitted payment stablecoin issuer or by a qualifying foreign issuer meeting statutory conditions. The framework is therefore relevant to U.S. exchanges, custodians, payment companies, issuers, and stablecoin users, but implementation details depend on final agency rules.
Federal implementation is underway. Treasury published an advance notice of proposed rulemaking on September 19, 2025. The OCC published a GENIUS Act proposed rule on March 2, 2026; Treasury proposed broad principles for state-level substantial similarity on April 3, 2026; FDIC and FinCEN-related proposed rules appeared on April 10, 2026; and NCUA published an additional proposal on May 18, 2026. Regulators are directed to promulgate implementing regulations by July 18, 2026. This profile should be reviewed when final rules are issued or when the effective-date trigger changes.
Defines payment stablecoins as payment or settlement digital assets redeemable for fixed monetary value, excluding national currencies, deposits, and securities.
Limits U.S. issuance to permitted payment stablecoin issuers, subject to statutory exceptions and Treasury safe harbors.
Requires at least 1:1 identifiable reserves, public redemption policies, fee disclosure, monthly reserve composition reports, and monthly certifications.
Treats permitted issuers as financial institutions for BSA purposes and requires AML, sanctions, customer identification, monitoring, and lawful-order capabilities.
Allows qualifying state-regulated issuers up to $10B in outstanding issuance if state regimes are certified as substantially similar to the federal framework.
States that payment stablecoins are not U.S. government backed, not FDIC insured, and not NCUA share insured; misrepresentation is prohibited.
Beginning Jul. 18, 2028, DASPs generally may not offer or sell payment stablecoins to U.S. persons unless issuer requirements are met.
S. 1582 was introduced by Sen. Bill Hagerty.
Senate passed the bill with an amendment by a 68-30 roll-call vote.
House passed the bill 308-122 and the bill was presented to the President.
President signed S. 1582 into law as the GENIUS Act.
Treasury requested public comment on implementation topics including issuers, illicit finance, foreign regimes, tax, insurance, and data.
OCC proposed implementation rules for issuers and activities subject to its jurisdiction.
Treasury proposed broad principles for determining whether a state-level regime is substantially similar to the federal framework.
FDIC proposed requirements for FDIC-supervised PPSIs, custodians, reserves, capital, liquidity, and deposit insurance treatment.
FinCEN-related proposal addressed PPSI AML/CFT programs, BSA treatment, and sanctions compliance.
NCUA proposed supplemental standards for payment stablecoin issuers subject to its jurisdiction.
Crypto Exchanges, Custodians, Investors, Stablecoin issuers
Payment stablecoins, Stablecoins
Status is date-sensitive. As of June 2, 2026, the Act is enacted but its main operational framework is pending final implementing regulations or the statutory fallback effective date.
