S. 1582 · 119th Congress · Senate
GENIUS Act
Introduced 2025-05-01 · Sponsored by Sen. Hagerty, Bill [R-TN] (R-TN) · Last updated 2026-03-31
Last action (2025-07-18): Became Public Law No: 119-27.
Summary
Creates the first federal regulatory framework for stablecoins, the digital currencies pegged to the dollar. Only approved issuers (banks or licensed nonbank companies) can offer stablecoins to U.S. users, and they must back every coin 1:1 with reserves. Issuers face federal or state oversight depending on their size, and the law sets consumer protection and transparency requirements that did not exist before.
The Good
Creates the first comprehensive federal framework for stablecoins
Establishes clear rules for who can issue payment stablecoins, requiring issuers to be federally or state-qualified and to maintain 1:1 reserve backing. This fills a regulatory vacuum that has left consumers and businesses uncertain about the legal status of dollar-pegged digital currencies.
Requires full reserve backing to protect consumers
Issuers must hold reserves equal to 100% of outstanding stablecoins in high-quality liquid assets like Treasury securities or cash. This requirement directly addresses the risk of undercollateralization that contributed to past stablecoin failures like TerraUSD.
Provides regulatory clarity that could maintain US fintech leadership
Without clear rules, stablecoin innovation has been moving to jurisdictions with established frameworks like the EU and Singapore. Defined rules give US-based companies a legal foundation to build on rather than operating in legal gray areas.
The Bad
May legitimize a sector still plagued by fraud and volatility
Federal regulation could signal government endorsement of an industry where scams, hacks, and market manipulation remain common. Critics argue the framework primarily benefits large financial institutions and crypto companies seeking mainstream credibility without addressing underlying risks to retail investors.
Could preempt stronger state-level consumer protections
Several states, including New York, have developed their own stablecoin regulations. The federal framework may override these state rules, potentially weakening consumer protections in states that had taken a stricter approach to oversight.
Concentrated lobbying influence shaped the final text
Major crypto firms and banking lobbyists were heavily involved in shaping the legislation. Several senators raised concerns about provisions that appear tailored to benefit specific companies, including exemptions that could allow large tech firms to issue their own stablecoins.
Vote Record
House, 2025-07-17
BipartisanPassage (House)
Passed Congress.gov — House Roll Call #200
House vote by state
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Senate, 2025-06-17
BipartisanPassage (Senate)
Passed Congress.gov — Senate Roll Call #318
Senate vote by state
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Senate, 2025-06-12
BipartisanCloture Motion
Passed Congress.gov — Senate Roll Call #312
Senate vote by state
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Senate, 2025-05-21
BipartisanMotion to Proceed
Passed Congress.gov — Senate Roll Call #263
Senate vote by state
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Senate, 2025-05-19
BipartisanCloture Motion
Passed Congress.gov — Senate Roll Call #262
Senate vote by state
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Senate, 2025-05-08
Cloture on Motion to Proceed
Failed Congress.gov — Senate Roll Call #240
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