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By Opalesque:

The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) was passed by the U.S. Senate on June 17, 2025, by a vote of 68-30. This legislation aims to establish the first comprehensive federal regulatory framework for stablecoins in the United States.

The GENIUS Act seeks to enhance transaction efficiency while strengthening the dollar's position as the world's reserve currency by creating increased demand for U.S. Treasuries and expanding financial inclusion, according to a note by Tim Wagner, partner at law firm Nelson Mullins Riley & Scarborough LLP.

The legislation defines payment stablecoins as digital assets pegged to the U.S. dollar and establishes clear licensing processes for stablecoin issuers.

Key provisions include tiered regulatory oversight based on market capitalisation. For issuers exceeding $10bn in stablecoins, the Federal Reserve will regulate depository institutions while the Office of the Comptroller of the Currency will oversee non-bank issuers. States retain authority to regulate smaller issuers under $10bn, with a waiver process allowing larger issuers to request state-level regulation.

The Act mandates strict reserve requirements, requiring issuers to maintain reserves in actual dollars, Treasury securities, or equivalent safe assets matching their stablecoin value. In insolvency scenarios, coin holders receive priority over other creditors, providing enhanced consumer protection.......................

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