On June 17, 2025, the U.S. Senate passed, by a vote of 68 to 30, the “Guiding and Establishing National Innovation for U.S. Stablecoins Act” or “GENIUS Act.” The GENIUS Act would establish a federal regulatory framework for “payment stablecoins” and their issuers that also contemplates scope for state-only regulation. The legislation would limit the issuance of payment stablecoins in the United States to “permitted payment stablecoin issuers” (“PPSIs”) and qualifying foreign issuers. Depending on the type of entity and the amount of payment stablecoins issued, an entity could be approved as a PPSI by either a federal or state regulator. Similarly, a PPSI could be regulated and supervised at either the federal or state level (or, in some cases, at both levels). A foreign issuer would be permitted to offer and sell stablecoins in the United States through an intermediary only if the issuer is subject to requirements “comparable” to the requirements applicable to PPSIs, and becomes subject to OCC supervision, among other things.
The legislation now moves to the U.S. House of Representatives, where a companion bill, the “Stablecoin Transparency and Accountability for a Better Ledger Economy Act of 2025” or “STABLE Act of 2025,” is under consideration. Although similar in many respects to the GENIUS Act, the STABLE Act includes several notable differences. Ultimately, the House and Senate bills will have to be reconciled before the legislation can go to the President for his signature. It also remains unclear whether the House will seek to advance stablecoin legislation on a standalone basis or instead seek to tie this legislation to passage of broader “market structure” legislation that would implement significant changes to the regulatory framework applicable to digital assets generally, including the broad range of existing and potential cryptocurrencies.
The Administration, for its part, supports passage of standalone stablecoin legislation, with the President recently encouraging the House to pass the GENIUS Act without amendment, which would suggest that the GENIUS Act may soon become law. The ultimate procedural path and final provisions will depend on how these points are resolved.