S. 1582: GENIUS Act
Sponsor
Bill Hagerty
Republican · TN
Bill Progress
Latest Action · Jul 18, 2025
Became Public Law No: 119-27.
Why it matters
Clear rules for stablecoins could reshape digital payments and protect consumers.
The GENIUS Act is the Senate’s first serious stab at putting stablecoins—digital tokens tied to real money—under a national rulebook. Lawmakers want to balance growing the U.S. digital finance sector with guarding against risks like scams, hacks, and financial instability.
The bill spells out who can issue stablecoins, how those issuers are regulated, and who oversees them. Federal agencies like the Fed and FDIC would get central roles, and companies wanting to issue stablecoins would need approval.
The Act tries to carve out room for blockchain developers and crypto protocols, shielding them from strict rules aimed at stablecoin businesses. This aims to avoid crushing U.S.-based crypto innovation while still targeting risky operators.
If passed, the law could push more stablecoin business into the mainstream—and give consumers and banks more clarity. But expect pushback from crypto purists and concerns from traditional banks about competition.
What does S. 1582 do?
Stablecoin Issuer Approval
Only licensed banks, credit unions, or specifically approved nonbank firms can issue payment stablecoins.
Clear Definitions
Spells out what counts as a stablecoin, digital asset, and digital asset service provider, setting nationwide standards.
Exemptions for Developers
Excludes blockchain software developers, validators, or liquidity pool participants from stablecoin issuer regulations.
Federal Agency Oversight
Puts the Federal Reserve, OCC, and FDIC in charge of supervising and approving stablecoin issuers.
Handling 'Lawful Orders'
Sets up legal processes for freezing or blocking stablecoin accounts if ordered by a court or regulator.
Who benefits from S. 1582?
Stablecoin Users
Gain stronger protections and can trust that issuers follow federal rules.
Banks and Credit Unions
Get a regulated path to launch their own payment stablecoins.
Crypto Developers
Avoid heavy regulation if they're only building open-source protocols or software.
Regulators
Gain clearer authority to police stablecoin risks and protect the finance system.
Who is affected by S. 1582?
Stablecoin Issuers
Face tough licensing and oversight requirements, limiting who can legally issue digital dollars.
Foreign Stablecoin Firms
Will be restricted from serving U.S. customers unless they get approval.
Unregulated Crypto Businesses
May lose access to the U.S. market if they don’t comply with new licensing rules.
Blockchain Validators
Protected from stablecoin laws as long as they stick to running networks, not handling user funds.
S. 1582 Common Questions
What is the penalty for issuing a stablecoin without approval under the GENIUS Act?
Knowingly issuing a payment stablecoin without being a permitted issuer can bring a fine up to $1,000,000, up to 5 years in prison, or both under the GENIUS Act (Section 3).
How much in stablecoin issuance can stay under state regulation before federal oversight kicks in?
Issuers with $10,000,000,000 or less in consolidated outstanding issuance may use a substantially similar state regime; above that, they must transition to federal oversight within 360 days under the GENIUS Act (Section 4).
Can a stablecoin issuer pay interest or yield to token holders under the GENIUS Act?
No. The GENIUS Act bars permitted payment stablecoin issuers from paying interest or yield to holders (Section 4).
What assets can back a stablecoin under the GENIUS Act?
Under the GENIUS Act (Section 4), reserves must be 1:1 and held in cash, Fed balances, insured deposits, Treasuries maturing in 93 days or less, overnight Treasury-backed repos, or registered government money market funds.
How long do regulators have to approve a stablecoin application under the GENIUS Act?
Regulators must decide within 120 days of receiving a substantially complete application, and if they miss that deadline the application is deemed approved under the GENIUS Act (Section 5).
Can blockchain developers or liquidity pool users be treated as stablecoin issuers under the GENIUS Act?
Generally no. The GENIUS Act excludes distributed ledger protocols, self-custodial software, and liquidity pool participants from the definition of digital asset service provider (Section 2).
Does the GENIUS Act protect stablecoin holders first in a bankruptcy?
Yes. Stablecoin holders get first priority over the estate for claims from holding stablecoins under the GENIUS Act (Section 11).
Can a stablecoin issuer mix reserve assets with its own funds under the GENIUS Act?
No. Reserve commingling is prohibited, and reserves must be segregated from the issuer's own assets under the GENIUS Act (Section 10).
What happens to foreign stablecoins that Treasury labels noncompliant under the GENIUS Act?
According to S1582 Section 8, secondary trading is barred 30 days after Federal Register publication, with penalties up to $100,000 per violation per day for service providers and $1,000,000 per day for foreign issuers.
When does the GENIUS Act take effect?
The GENIUS Act takes effect on the earlier of 18 months after enactment or 120 days after final regulations are issued by the primary federal stablecoin regulators (Section 20).
Based on S. 1582 bill text
Visual Summary
S. 1582 at a Glance
<div style="max-width:100%;">
<img src="https://legisletter.org/images/bill-infographics/s1582-genius-act.jpeg" alt="S1582 Visual Summary - GENIUS Act" style="max-width:100%;height:auto;display:block;" />
<p style="margin:8px 0 0;font-size:14px;color:#555;text-align:center;">
<a href="https://legisletter.org/bill/s1582-genius-act" target="_blank" rel="noopener noreferrer" style="color:inherit;text-decoration:underline;">S1582 Visual Summary – GENIUS Act</a>
<span> via </span>
<a href="https://legisletter.org" target="_blank" rel="noopener noreferrer" style="color:inherit;text-decoration:none;font-weight:500;">legisletter.org</a>
</p>
</div>S1582 Legislative Journey
Signed into Law
Jul 18, 2025
Became Public Law No: 119-27.
+3 more actions this day
House: Passed 308-122
Jul 17, 2025
On passage Passed by the Yeas and Nays: 308 - 122 (Roll no. 200). (text: CR H3405-3418)
+10 more actions this day
House: Passed
Jul 16, 2025
Rule H. Res. 580 passed House.
House: Committee Action
Jul 15, 2025
Rules Committee Resolution H. Res. 580 Reported to House. Rule provides for consideration of H.R. 4016, H.R. 3633, H.R. 1919 and S. 1582. The resolution provides for consideration of H.R. 4016 and H.R. 3633 under a structured rule, and H.R. 1919 and S. 1582 under a closed rule, with one hour of general debate on each bill. The resolution provides for a motion to recommit on H.R. 4016, H.R. 3633, and H.R. 1919, and a motion to commit on S. 1582.
House: Action Taken
Jun 23, 2025
Held at the desk.
Passed 68-30
Jun 17, 2025
Passed Senate with an amendment by Yea-Nay Vote. 68 - 30. Record Vote Number: 318. (text: CR S3419-3432)
+2 more actions this day
Floor Action
Jun 12, 2025
Considered by Senate. (consideration: CR S3366-3367)
Floor Action
Jun 11, 2025
Considered by Senate. (consideration: CR S3335-3336)
Floor Action
Jun 9, 2025
Considered by Senate. (consideration: CR S3275-3277)
Floor Action
Jun 2, 2025
Considered by Senate. (consideration: CR S3155-3156)
Floor Action
May 21, 2025
Motion to proceed to measure considered in Senate. (CR S3017)
Floor Action
May 20, 2025
Motion to proceed to measure considered in Senate. (CR S2983)
Action Taken
May 19, 2025
Motion by Senator Thune to reconsider the vote by which cloture on the motion to proceed to the measure was not invoked (Record Vote No. 240) rendered moot in Senate.
Action Taken
May 15, 2025
Second cloture motion on the motion to proceed presented in Senate. (CR S2947)
Action Taken
May 12, 2025
Motion to proceed to consideration of measure made in Senate. (CR S2847)
Action Taken
May 8, 2025
Motion by Senator Thune to reconsider the vote by which cloture on the motion to proceed to the measure was not invoked (Record Vote No. 240) made in Senate.
Action Taken
May 6, 2025
Cloture motion on the motion to proceed to the measure presented in Senate. (CR S2772)
Action Taken
May 5, 2025
Read the second time. Placed on Senate Legislative Calendar under General Orders. Calendar No. 66.
Introduced
May 1, 2025
Introduced in the Senate. Read the first time. Placed on Senate Legislative Calendar under Read the First Time.
+1 more action this day
About the Sponsor
Bill Hagerty
Republican, TN · 5 years in Congress
Committees: Joint Committee on Printing, Foreign Relations, Banking, Housing, and Urban Affairs
View full profile →
Cosponsors (5)
All 5 cosponsors are Republicans. Cosponsors represent 5 states: Alaska, Nebraska, Ohio, and 2 more.
What laws does S. 1582 change?
4 changes
Sections Amended
Section 324(b) of Revised Statutes (12 U.S.C. 1(b))
adding at the end the following: ``(3) Regulation of federal qualified payment stablecoin issuers
Section 2 of GENIUS Act;'' after ``therefor;''. (c) Securities Act of 1933.--Section 2(a)(1) of the Securities Act of 1933 (15 U.S.C. 77b(a)(1))
adding at the end the following: ``The term `security' does not include a payment stablecoin issued by a permitted payment stablecoin issuer, as such terms are defined in section 2 of the GENIUS Act
Section 2 of GENIUS Act.''. (e) Securities Investor Protection Act of 1970.--Section 16(14) of the Securities Investor Protection Act of 1970 (15 U.S.C. 78lll(14))
adding at the end the following: ``The term `security' does not include a payment stablecoin issued by a permitted payment stablecoin issuer, as such terms are defined in section 2 of the GENIUS Act
Section 1a(9) of Commodity Exchange Act (7 U.S.C. 1a(9))
adding at the end the following: ``The term `commodity' does not include a payment stablecoin issued by a permitted payment stablecoin issuer, as such terms are defined in section 2 of the GENIUS Act
S. 1582 Quick Facts
- Chamber
- Senate
- Policy
- Finance and Financial Sector
- Introduced
- May 1, 2025
Became Public Law No: 119-27.
Jul 18, 2025
S. 1582 Bill Text
“To provide for the regulation of payment stablecoins, and for other purposes.”
Source: U.S. Government Publishing Office
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