The legislation gives the US its first federal framework for dollar‑backed stablecoins. Trump celebrated the passing of the bill, saying:
“Crypto has gone up more than any stock. Crypto makes the dollar look good. Crypto is good for the dollar, the nation.”
He added that the GENIUS Act positions the country to lead the sector and vowed to approve broader crypto market structure legislation before the end of the year.
The GENIUS Act creates a federal framework for issuing and overseeing payment stablecoins.
It assigns the Federal Reserve to license and supervise national-level, insured depository institutions, while permitting eligible, state-chartered firms to mint dollar-pegged tokens if they meet equivalent standards on reserves, disclosures, redemptions, and risk controls.
Issuers must back every token with high-quality liquid assets, such as cash, Treasury bills, or other short-dated government securities, that match their outstanding liabilities and provide regular attestation reports.
The law also directs bank regulators to set examination schedules, guarantees consumers the right to redeem at face value within specific time frames, and requires that reserve assets remain segregated unless customers give explicit consent for rehypothecation.
The Senate approved the consolidated version late on July 17, completing the bicameral process required for enrollment and presentation to the White House.
