GENIUS Act

This bill establishes a comprehensive regulatory framework specifically for payment stablecoins in the United States. A key pro-crypto aspect is the explicit definition of "payment stablecoin" and the creation of a clear licensing and supervision regime for issuers at both the federal and state levels. This provides much-needed regulatory certainty, which is crucial for the growth and adoption of stablecoins.

Crucially, the bill explicitly states that payment stablecoins issued by permitted issuers are *not* to be treated as securities or commodities under existing laws (Section 17). This directly counters the approach taken by some regulators, like the SEC, and provides a favorable classification for stablecoins. The bill also mandates strong reserve requirements (1:1 backing with highly liquid assets) and transparency through monthly attestations, which enhances the stability and trustworthiness of stablecoins, addressing common concerns without imposing overly burdensome requirements. Furthermore, the definition of "digital asset service provider" carves out decentralized protocols, self-custodial software, transaction validators, and liquidity pools (Section 2), protecting core decentralized activities from being swept into this regulatory net. The mandatory application approval process with clear timelines and limited grounds for denial, specifically excluding issuance on public networks, encourages innovation and market participation.