Last Updated: November 3, 2026
The GENIUS Act, short for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, is the first federal US law for payment stablecoins, signed by President Donald Trump on July 18, 2025. The GENIUS Act lets only licensed issuers offer dollar stablecoins in the United States, requires at least one-for-one backing with cash and short-term Treasuries, bans interest payments to holders and takes effect on January 18, 2027.
Regulators missed the law’s July 18, 2026 deadline for final rules. As of November 3, 2026, the Office of the Comptroller of the Currency (OCC) has a final issuer rule, effective January 18, 2027, and Treasury an interim final rule on state certifications, while the FDIC, the Federal Reserve and the National Credit Union Administration (NCUA) have only proposals, according to the Federal Register.
Key Takeaways
- The GENIUS Act (Public Law 119-27) passed the Senate 68-30 on June 17, 2025 and the House 308-122 on July 17, 2025
- Stablecoins need reserves of at least one-for-one in dollars, insured deposits, Treasury bills maturing in 93 days or less and similar assets, reported monthly
- Only permitted issuers may issue: approved bank and credit union subsidiaries, OCC-approved federal qualified issuers and state qualified issuers with up to $10 billion outstanding
- The law takes effect on January 18, 2027; from July 18, 2028, US platforms may offer only stablecoins from permitted issuers
- Stablecoins were worth about $275.4 billion on November 3, 2026 (CoinMarketCap); see Crypto Market Today for daily data
GENIUS Act Summary
| Detail | Information |
|---|---|
| Full Name | Guiding and Establishing National Innovation for U.S. Stablecoins Act |
| Law | Public Law 119-27 (S. 1582), first introduced as S. 394 on February 4, 2025 |
| Lead Sponsor | Senator Bill Hagerty (R-TN) |
| Votes | Senate 68-30 (June 17, 2025); House 308-122 (July 17, 2025) |
| Signed Into Law | July 18, 2025 |
| Rulemaking Deadline | July 18, 2026 (missed) |
| Effective Date | January 18, 2027 |
| Platform Deadline | July 18, 2028 |
| Regulators | OCC, FDIC, Federal Reserve, NCUA, Treasury (FinCEN, OFAC) and state regulators |
| Related Bill | CLARITY Act (H.R. 3633), not passed by the Senate |
What Is the GENIUS Act
The GENIUS Act, short for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, is the US stablecoin bill that became law in July 2025. It creates a legal category for “payment stablecoins”: fiat-backed digital assets used for payments that the issuer must redeem for a fixed amount of money. A payment stablecoin is not a national currency, a bank deposit or a security, and stablecoins from permitted issuers are not commodities either, so the SEC and the CFTC generally do not regulate them, law firm Morgan Lewis noted.
Senator Bill Hagerty, a Tennessee Republican, introduced the first version (S. 394) on February 4, 2025, with Senators Tim Scott, Kirsten Gillibrand and Cynthia Lummis. The final bill, S. 1582, passed the Senate with bipartisan support and the House 308-122, according to a Latham & Watkins summary.
The GENIUS Act covers stablecoins only. The separate CLARITY Act deals with market structure for other tokens, such as XRP and Ethereum; see our explainer on what the CLARITY Act is and how it could reshape US crypto regulation.
Who the GENIUS Act Applies To
Only “permitted payment stablecoin issuers” may issue payment stablecoins in the United States. Section 2 of the GENIUS Act defines three types:
- Subsidiaries of insured banks and credit unions, approved by their federal regulator
- Federal qualified issuers approved by the OCC, including nonbanks, uninsured national banks and federal branches of foreign banks
- State qualified issuers with no more than $10 billion outstanding, supervised under a certified state regime
A public company not mainly engaged in financial activities, such as a large technology firm, needs a unanimous vote of the Stablecoin Certification Review Committee, chaired by the Treasury Secretary, before it can issue.
When Does the GENIUS Act Go Into Effect?
The GENIUS Act takes effect on January 18, 2027. The statute sets the effective date as the earlier of 18 months after enactment or 120 days after regulators issue final rules; with the FDIC, Federal Reserve and NCUA rules unfinished on November 3, 2026, the 18-month date applies. The OCC’s final rule takes effect the same day. From July 18, 2028, exchanges, brokers and other digital asset service providers may offer stablecoins to people in the US only if a permitted issuer issued them (Section 3(b)), with separate conditions for foreign issuers.
Section 13 gave regulators until July 18, 2026 to finish their rules, and none had published a final rule by then. Blockchainreporter’s timeline of the GENIUS Act rulemaking (updated November 3, 2026), by Federal Register date:
| Date | Agency | Rulemaking | Status |
|---|---|---|---|
| September 19, 2025 | Treasury | Advance notice (request for comment) | Comments closed October 20, 2025 |
| December 19, 2025 | FDIC | Approval process for bank subsidiaries | Proposal |
| February 12 and May 18, 2026 | NCUA | Credit union issuers | Proposals |
| March 2, 2026 | OCC | Issuer rule | Final rule October 23, 2026 |
| April 3, 2026 | Treasury | Principles for state regimes | Proposal |
| April 10, 2026 | FDIC | Standards for FDIC-supervised issuers | Proposal |
| April 10 to June 24, 2026 | FinCEN, OFAC, FDIC, OCC | Anti-money laundering and sanctions | Proposals |
| August 18, 2026 | Treasury | Issuance, offer and sale (Section 3) | Comments closed October 19 |
| September 29, 2026 | Federal Reserve | Issuer framework and applications | Comments due November 30 |
| September 30, 2026 | Treasury | State certification procedures | Interim final rule in effect |
| October 23, 2026 | OCC | Final issuer rule, announced October 21 | Effective January 18, 2027 |
The OCC will open license applications once the Office of Management and Budget approves its forms, submitted for review on October 23, 2026 (Federal Register), and a substantially complete application is treated as approved after 120 days unless denied, Skadden’s summary of the rule notes. Our reports cover the OCC’s final rule, the Federal Reserve’s proposals and the Section 3 comment window.
GENIUS Act vs. State and International Stablecoin Regulation
Under the GENIUS Act, issuers with up to $10 billion outstanding can choose state supervision if the Stablecoin Certification Review Committee finds the state regime “substantially similar” to the federal one. Treasury issued the certification forms and procedures on September 30, 2026, as our report on Treasury’s state certification rule explains. An issuer that grows past $10 billion must move to federal oversight within 360 days or stop issuing new coins.
The EU’s Markets in Crypto-Assets Regulation (MiCA) has applied in full since December 2024, with a transitional period for existing crypto firms that could run until July 1, 2026, according to ESMA. Our global crypto regulation guide compares other countries, and Bitcoin News Today tracks how these rules affect exchanges.
How the GENIUS Act Relates to the CLARITY Act
The CLARITY Act (H.R. 3633) is the crypto market structure bill now waiting in the Senate. It would set up a system for the SEC and the CFTC to regulate digital commodities. The House passed it in July 2025, but a Senate motion to begin debate failed 49 to 50 on September 15, 2026, short of the 60 votes needed (roll call vote 234), and no later Senate vote had been held as of November 3, 2026. The GENIUS Act does not depend on it.
GENIUS Act Key Provisions
Blockchainreporter’s key provisions table summarizes Public Law 119-27 by section, citing law firm analyses where noted.
| Provision | What the GENIUS Act requires |
|---|---|
| Reserves (Sec. 4(a)(1)) | At least one-for-one in cash, insured deposits, Treasuries maturing in 93 days or less, Treasury-backed overnight repos, government money market funds or tokenized versions |
| Redemption (Sec. 4(a)(1)(B)) | Clear procedures for timely redemption; the OCC rule sets two business days |
| Audits and attestations (Sec. 4(a)(3), (10)) | Monthly reserve reports examined by a registered public accounting firm and certified by the CEO and CFO; annual audited statements above $50 billion outstanding |
| Marketing limits (Sec. 4(a)(9), 4(e)) | No claims of US government backing or deposit insurance, and no names using US government terms |
| Foreign issuers (Sec. 3, 18) | Comparable home regime (Treasury decides), OCC registration, US-held reserves for US customers and ability to follow lawful orders (Latham & Watkins) |
| State option (Sec. 4(c), (d)) | State supervision up to $10 billion outstanding; federal oversight above that |
| Holder priority (Sec. 11) | Holders’ claims on reserves come first, and reserves stay out of a bankrupt issuer’s estate (Morgan Lewis) |
| Interest ban (Sec. 4(a)(11)) | No interest or yield to holders solely for holding, using or retaining the stablecoin |
| Who may issue (Sec. 2, 3) | Only permitted payment stablecoin issuers; non-financial public companies need a unanimous committee vote |
Which Stablecoins Are Preparing to Comply?
Stablecoin issuers have announced these steps toward the GENIUS Act framework:
- Ripple (RLUSD): The OCC granted final approval on October 26, 2026 for Ripple National Trust Bank, which will manage RLUSD’s segregated reserves and act as collateral trustee, Ripple said. RLUSD, worth about $2.5 billion, is still issued by New York-regulated Standard Custody & Trust Company, and Ripple has not said when the bank will open.
- Tether (USAT) and Western Union (USDPT): Anchorage Digital Bank, which calls itself the first federally chartered crypto bank in the US, issues and holds both tokens, Anchorage Digital said on October 27, 2026. Bitso, which offers them in Mexico, describes both as compliant with the Act.
- SoFi (SoFiUSD): SoFi calls SoFiUSD, launched in December 2025, the first stablecoin issued by a US national bank. SoFi says its tokenized deposit SOFIE, announced October 22, 2026, pays a variable 4.40% APY and “is not a payment stablecoin,” so that yield sits outside the Act’s interest ban.
Criticism and Debate Around the GENIUS Act
Yield is the main fight over the GENIUS Act. The Act bars issuers from paying interest but does not expressly cover rewards paid by exchanges or affiliates. The OCC proposed a presumption that some affiliate and third-party payments break the ban; commenters split between tightening and dropping it, and the final rule dropped it in favor of case-by-case review, according to Skadden.
Runs are a second concern in the GENIUS Act rules. Commenters warned that freezing or extending redemptions in a surge could speed up a run, and the final rule replaced an automatic seven-day extension with extensions the OCC expects to grant rarely, Skadden said.
Oversight is a third: with stablecoins outside securities and commodities law, banking and certified state regulators, not the SEC or the CFTC, supervise issuers. Timing is a fourth. The first rule in final form, Treasury’s interim rule of September 30, 2026, came after the July 18 deadline, and the FDIC, Federal Reserve and NCUA rules are still proposals as January 18, 2027 approaches.
What the GENIUS Act Means for Crypto Markets
For traders, the GENIUS Act means stablecoins without a clear path to a license face growing uncertainty before January 18, 2027 and July 18, 2028. Stablecoins were worth about $275.4 billion at about 11:10 UTC on November 3, 2026, about 10.7% of a $2.58 trillion crypto market, according to CoinMarketCap. Tether’s USDT, at about $178.8 billion, and Circle’s USDC, at about $70.9 billion, held about 90.7% of that total. Bitcoin traded near $77,100, down 0.9% in 24 hours, and the Crypto Fear and Greed Index read 26 (Fear) on November 3, down from 37 a day earlier (alternative.me).
The OCC’s reserve rules, including at least 5% of reserves in instruments such as demand deposits and a 40% cap on exposure to any single counterparty (Skadden), will shape how far the market consolidates around federally supervised issuers. For ongoing coverage, see Crypto News Today.
Frequently Asked Questions
What is the GENIUS Act?
The GENIUS Act, or Guiding and Establishing National Innovation for U.S. Stablecoins Act, is the first US federal law for payment stablecoins, signed on July 18, 2025. It lets only licensed issuers offer stablecoins, requires at least one-for-one reserves in cash and short-term Treasuries, bans interest paid to holders and puts holders first if an issuer fails.
When does the GENIUS Act go into effect?
The GENIUS Act takes effect on January 18, 2027, 18 months after it was signed. The law allowed an earlier date, 120 days after regulators finalize their rules, but the FDIC, Federal Reserve and NCUA rules were still proposals in November 2026. From July 18, 2028, US platforms may offer only stablecoins from permitted issuers.
What does the GENIUS Act mean for stablecoins?
Under the GENIUS Act, a payment stablecoin must come from a permitted issuer, be backed at least one-for-one by cash, insured deposits or short-term Treasuries and be redeemable on clear, timely terms. Issuers publish monthly reserve reports examined by accountants. Stablecoins from permitted issuers are not securities or commodities, so banking regulators supervise them rather than the SEC.
What are the main points of the GENIUS Act stablecoin legislation?
The main points are full reserve backing, monthly reserve reports checked by a registered accounting firm, a ban on interest paid to holders, limits on marketing that implies government backing, first claim on reserves for holders if an issuer fails, a state option for issuers with up to $10 billion outstanding, and conditions for foreign issuers, including OCC registration.
How does the GENIUS Act impact cryptocurrency regulation?
The GENIUS Act puts stablecoins under banking regulators. The OCC, FDIC, Federal Reserve, NCUA and certified state agencies license and supervise issuers, while FinCEN and OFAC write anti-money laundering and sanctions rules. Exchanges must offer only compliant stablecoins from July 2028. Other crypto assets are outside the Act and are the subject of the separate CLARITY Act.
Can stablecoins pay interest under the GENIUS Act?
No. The GENIUS Act bars permitted and foreign issuers from paying holders any form of interest or yield solely for holding, using or retaining a payment stablecoin. Rewards paid by exchanges or affiliates are not expressly addressed, and the OCC’s final rule reviews such arrangements case by case after dropping a proposed presumption against them, according to the law firm Skadden.
Have regulators finished the GENIUS Act rules?
Not yet. Regulators missed the July 18, 2026 deadline set by the Act. As of November 3, 2026, the OCC has a final rule, effective January 18, 2027, and Treasury has an interim final rule on state certifications. The FDIC and NCUA have proposals, and the Federal Reserve’s two proposals are open for comment until November 30, 2026.
How is the GENIUS Act different from the CLARITY Act?
The GENIUS Act regulates payment stablecoins and is already law. The CLARITY Act is a separate crypto market structure bill that would set up a system for the SEC and the CFTC to regulate digital commodities. The House passed it in July 2025, but a Senate motion to begin debate failed 49 to 50 on September 15, 2026.
What happens to stablecoins issued outside the United States?
Foreign issuers can reach US users only under conditions. Treasury must find their home regime comparable to the US framework, and the issuer must register with the OCC, hold enough reserves in a US financial institution for US customers and be able to comply with lawful orders. Tether also offers USAT, a separate token issued by Anchorage Digital Bank.
What has changed since the GENIUS Act was signed in 2025?
Since July 2025, regulators have moved from statute to rules. Treasury, the FDIC, the NCUA, the OCC, FinCEN and the Federal Reserve published proposals between September 2025 and September 2026. The OCC finalized its issuer rule in October 2026, Ripple won final OCC approval for a national trust bank, and stablecoins were worth about $275 billion in November 2026.
Data sources: Public Law 119-27 and S. 394 (govinfo.gov), the Federal Register, the US Senate (roll call vote 234), Federal Reserve, FDIC and NCUA press releases, ESMA, Ripple, Anchorage Digital, SoFi, Latham & Watkins, Morgan Lewis, Skadden, CoinMarketCap and alternative.me. Checked November 3, 2026.
About the author
Max delves deep into the cryptocurrency realm, with a passion for altcoins and NFTs. Convinced of crypto's transformative potential, he envisions a decentralized financial future. Max's background in the financial sector grants him unique insights into global monetary systems. In his leisure, Max embraces the thrill of adventures and is an avid sports enthusiast, finding balance and rejuvenation away from work.
