Skip to content
ContentLora

    Tip: press / anywhere to search.

    concept

    GENIUS Act (US stablecoin law, Public Law 119-27)

    Also known as Guiding and Establishing National Innovation for U.S. Stablecoins Act, S. 1582, Public Law 119-27

    The GENIUS Act is the US federal law for payment stablecoins, signed on July 18, 2025, as Public Law 119-27.[1] It requires permitted issuers to hold reserves at least one to one, bars them from paying interest just for holding a stablecoin, and classes their stablecoins as neither securities nor commodities.[2][3][4]

    Editor reviewedStrict sourcingUpdated CryptoTech policy
    Key facts

    The GENIUS Act is a US federal law for one type of crypto asset, payment stablecoins: tokens that the issuer must redeem for a fixed amount of money.[5][1] It is the companion to the broader CLARITY Act, which is still pending in Congress.[6] This page is for information only and is not financial or investment advice.

    How it became law

    Sen. Bill Hagerty introduced S. 1582 on May 1, 2025.[7] Its first Senate cloture vote, on May 8, 2025, failed 48-49. A second vote on May 19 succeeded 66-32.[8] The Senate passed the bill 68-30 on June 17, 2025.[9] On July 17, 2025, the House passed it 308-122, the same day it passed the CLARITY Act.[10][11] It was signed on July 18, 2025.[1]

    Key rules

    • Definition. A payment stablecoin is a digital asset used for payment or settlement whose issuer must redeem it for a fixed amount of money.[5]
    • Reserves. Permitted issuers must hold identifiable reserves at least one to one, in assets such as US currency and bank deposits.[2]
    • No interest from issuers. Issuers may not pay holders interest or yield solely for holding, using or keeping a stablecoin.[3]
    • Not a security or commodity. The Act amended the securities laws and the Commodity Exchange Act to exclude stablecoins from permitted issuers.[4]
    • State option. State-qualified issuers with no more than $10 billion outstanding may choose a substantially similar state regime.[12]
    • Unregistered stablecoins. Stablecoins from issuers that are not permitted cannot be treated as cash equivalents for accounting, or used as cash-equivalent margin by regulated intermediaries.[13]
    • Effective date. The Act takes effect on the earlier of 18 months after enactment or 120 days after regulators issue final rules.[14]

    The House-passed CLARITY Act defines a “permitted payment stablecoin” by reference to the GENIUS Act.[15] It also leaves such stablecoins out of its “digital commodity” category.[16] The biggest overlap is stablecoin yield. The GENIUS Act bars issuers from paying interest. The Senate Banking version of the CLARITY Act would extend a similar ban to crypto platforms and their affiliates.[3][17] Banks argued that the GENIUS rule left a loophole for platforms and asked senators to close it.[18] Five banking trade groups said in May 2026 that yield-earning stablecoins could reduce consumer, small-business and farm loans by one-fifth or more, a figure from the banking industry’s own research.[19] A coalition of consumer groups also objected to loopholes for yield-like rewards.[20] Coinbase, by contrast, withdrew support for a January 2026 Senate draft at a time when banks were lobbying against crypto yield.[21][22] The full comparison is in CLARITY Act vs GENIUS Act.

    Questions readers ask

    What does the GENIUS Act do?

    It sets federal rules for payment stablecoins. Permitted issuers must hold identifiable reserves at least one to one and may not pay holders interest or yield solely for holding the stablecoin.[2][3]

    When was the GENIUS Act signed?

    The President signed it on July 18, 2025. It became Public Law 119-27.[1]

    When does the GENIUS Act take effect?

    On the earlier of 18 months after enactment or 120 days after regulators issue final implementing rules.[14]

    Are stablecoins securities under the GENIUS Act?

    A payment stablecoin issued by a permitted issuer is excluded from the definitions of security and commodity.[4]

    Sources

    Each numbered claim is a statement we checked against the sources listed with it. Status shows how well established it is.

    1. [1]

      The President signed the GENIUS Act on July 18, 2025, and it became Public Law 119-27. confirmedas of 2026-10-10

    2. [2]

      Permitted stablecoin issuers must hold identifiable reserves backing their stablecoins at least one to one, in assets such as US currency and bank deposits. confirmedas of 2026-10-10

    3. [3]

      The GENIUS Act bars stablecoin issuers from paying holders interest or yield solely for holding, using or retaining a payment stablecoin. confirmedas of 2026-10-10

    4. [4]

      The GENIUS Act amended the securities laws and the Commodity Exchange Act so that a stablecoin from a permitted issuer is neither a security nor a commodity. confirmedas of 2026-10-10

    5. [5]

      The GENIUS Act defines a payment stablecoin as a digital asset used for payment or settlement whose issuer must redeem it for a fixed amount of monetary value. confirmedas of 2026-10-10

    6. [6]

      On September 15, 2026, the Senate rejected cloture on the motion to proceed to H.R. 3633 by 49 to 50 (Rollcall Vote No. 234), with Sen. Chris Coons not voting. confirmedas of 2026-10-10

    7. [7]

      Sen. Bill Hagerty (R-Tenn.) introduced S. 1582, the GENIUS Act, on May 1, 2025. confirmedas of 2026-10-10

    8. [8]

      The GENIUS Act's first Senate cloture vote on the motion to proceed failed 48-49 on May 8, 2025; a second attempt succeeded 66-32 on May 19. confirmedas of 2026-10-10

    9. [9]

      The Senate passed the GENIUS Act on June 17, 2025, by 68 to 30. confirmedas of 2026-10-10

    10. [10]

      The House passed the GENIUS Act on July 17, 2025, by 308 to 122, the same day it passed the CLARITY Act. confirmedas of 2026-10-10

    11. [11]

      The House passed H.R. 3633 on July 17, 2025, by a vote of 294 to 134 (Roll no. 199). confirmedas of 2026-10-10

    12. [12]

      State-qualified stablecoin issuers with no more than $10 billion outstanding may opt for a substantially similar state regulatory regime. confirmedas of 2026-10-10

    13. [13]

      Under the GENIUS Act, stablecoins not issued by a permitted issuer cannot be treated as cash equivalents for accounting or used as cash-equivalent margin by regulated intermediaries. confirmedas of 2026-10-10

    14. [14]

      The GENIUS Act takes effect on the earlier of 18 months after enactment or 120 days after regulators issue final implementing rules. confirmedas of 2026-10-10

    15. [15]

      The House text defines a permitted payment stablecoin by reference to the GENIUS Act. confirmedas of 2026-10-10

    16. [16]

      The House text's digital commodity definition excludes securities, security derivatives, permitted payment stablecoins and bank deposits. confirmedas of 2026-10-10

    17. [17]

      The Senate Banking yield ban applies to digital asset service providers and their affiliates, and excludes registered stablecoin issuers, which the GENIUS Act already covers. confirmedas of 2026-10-10

    18. [18]

      On September 10, 2026, nearly 80 state bankers associations joined the American Bankers Association and Independent Community Bankers of America in urging senators to use the bill to close what they call a stablecoin interest loophole. confirmedas of 2026-10-10

    19. [19]

      Five banking trade groups said in May 2026 that research shows yield-earning stablecoins could reduce consumer, small-business and farm loans by one-fifth or more. confirmedas of 2026-05-04

    20. [20]

      The consumer coalition's concerns were weak anti-money-laundering requirements, unaddressed conflicts of interest for public officials, and loopholes allowing yield-like stablecoin rewards. confirmedas of 2026-10-10

    21. [21]

      On January 14, 2026, the Senate Banking Committee called off a planned markup of its market structure bill after Coinbase publicly withdrew its support for the draft. confirmedas of 2026-10-10

    22. [22]

      Coinbase CEO Brian Armstrong's objections to the January 2026 Senate Banking draft included what he described as a de facto ban on tokenized equities and DeFi provisions giving the government access to users' financial records. reportedas of 2026-10-10

    23. [23]

      GENIUS stands for the Guiding and Establishing National Innovation for U.S. Stablecoins Act. confirmedas of 2026-10-10

    Revision history (1)
    1. Page created.

    Created Oct 10, 2026. Last reviewed by an editor on Oct 10, 2026. Next scheduled review: Jan 10, 2027.

    Cite this page

    "GENIUS Act (US stablecoin law, Public Law 119-27)." ContentLora, updated Oct 10, 2026. https://contentlora.com/wiki/genius-act

    Spotted an error? Suggest a correction or emailcorrections@contentlora.com.

    Keep exploring

    Connections
    CLARITY Act Referenced by market-stru…
    ☰ Contents