GENIUS Act

The GENIUS Act would create a comprehensive regulatory framework for payment stablecoins in the United States. It would sharply restrict who may issue payment stablecoins (only “permitted payment stablecoin issuers,” including certain federally regulated entities and State-licensed issuers) and would require these issuers to hold 1-to-1 reserves backed by a broad, specified set of high-quality assets. The bill would establish a cross-agency regulatory structure, including a Stablecoin Certification Review Committee chaired by the Treasury Secretary, to oversee issuers and approve certain nonbank or public-company participants. It also restricts digital asset service providers (DS providers) from offering or selling payment stablecoins unless issued by a permitted issuer after three years, imposes strict accounting, liquidity, risk-management, and anti-money-laundering standards, and imposes penalties for violations. In short, it aims to tightly regulate stablecoin issuance, enhance transparency and resilience, and protect financial stability and consumer data, while constraining noncompliant or overseas issuers. Note: The text provided is partial, ending mid-section. The summary below reflects the provisions that are complete within the text given and the overall framework the bill sets forth.