GENIUS Act Establishes Regulatory Framework For Stablecoins

On July 18, 2025, President Trump signed into law the Guiding and Establishing National Innovation for U.S. Stablecoins Act, known as the GENIUS Act (the "Act").¹ The Act establishes a regulatory framework for the issuance of stablecoins backed by U.S. dollars, short-term U.S. Treasuries, and certain other enumerated assets. The Act had support from members of both political parties and is the first federal law focused on the regulation of cryptocurrency and digital assets. The Act:

• prohibits any party who is not a "permitted payment stablecoin issuer" ("PPSI") from issuing "payment stablecoins" in the United States;
• prohibits a "digital asset service provider" from offering, selling, or otherwise making available in the United States a payment stablecoin unless it is issued by a PPSI;²