Has the GENIUS Act passed yet? | The Full Story Explained

Current Legislative Status

The Guiding and Establishing National Innovation for U.S. Stablecoins Act, commonly known as the GENIUS Act, has officially passed and is now federal law. After months of intense legislative debate and multiple iterations of the bill, it was signed into law by the President on July 18, 2025. This landmark legislation, designated as Public Law 119–27, represents one of the most significant shifts in American financial policy regarding digital assets in decades.

The journey to enactment involved several key milestones. The bill was originally introduced in early 2025, with Senator Bill Hagerty being a primary sponsor of the Senate version (S.394). Throughout the first half of 2025, the House and Senate worked to reconcile different versions of stablecoin oversight. By July 17, 2025, both chambers reached a consensus and passed the final version of the bill in identical form, leading to the presidential signing the following day. As of early 2026, the industry is now moving from the legislative phase into the implementation and compliance phase.

Core Regulatory Framework

The primary objective of the GENIUS Act is to provide a comprehensive and clear regulatory framework for payment stablecoins. Before this law, stablecoin issuers operated in a fragmented regulatory environment, often facing conflicting guidance from various state and federal agencies. The GENIUS Act centralizes this oversight, defining exactly what constitutes a "permitted payment stablecoin" and who is allowed to issue them.

Under the new law, stablecoins that meet specific criteria are officially classified as "permitted payment stablecoins." A critical component of this classification is the legal distinction regarding securities law. The Act explicitly states that permitted payment stablecoins are not considered securities. This provides much-needed legal certainty for issuers and trading platforms, ensuring that these digital assets are treated as payment tools rather than investment contracts. For those looking to engage with the digital asset market, users can find various options on platforms like WEEX, which provides a secure environment for exploring the evolving crypto landscape.

Permitted Issuer Requirements

The Act mandates that only "permitted issuers" can offer payment stablecoins to U.S. persons. These issuers are subject to rigorous oversight by federal regulators. The law establishes a hierarchy of "primary Federal payment stablecoin regulators," which includes the Office of the Comptroller of the Currency (OCC), the Federal Reserve, and the Federal Deposit Insurance Corporation (FDIC), depending on the nature of the issuing entity. Non-bank entities wishing to issue stablecoins must apply for specific status and demonstrate that they maintain high standards of capital adequacy and reserve management.

Bank Secrecy Act Compliance

While the GENIUS Act removes stablecoins from the "securities" umbrella, it places them firmly within the scope of traditional financial oversight regarding illicit activity. All permitted issuers are strictly subject to the Bank Secrecy Act (BSA). This means they must implement robust Anti-Money Laundering (AML) programs, adhere to "Know Your Customer" (KYC) protocols, and report suspicious activities to the relevant authorities. This alignment with traditional banking standards is intended to prevent the use of stablecoins for money laundering or terrorist financing.

Implementation Timeline

Although the bill was signed in July 2025, the full weight of its requirements did not take effect immediately. The legislation includes a structured rollout period to allow the market and regulators to adjust. The Act specifies that its provisions take effect on the earlier of 18 months after the date of enactment or 120 days after the primary federal regulators issue final implementing regulations.

Milestone	Date / Timeline	Status
Bill Introduction	February 2025	Completed
Presidential Signing	July 18, 2025	Completed
Treasury Rulemaking	Late 2025 - Early 2026	In Progress
Full Enforcement	Expected Late 2026	Pending

The Rulemaking Process

Currently, in early 2026, the Department of the Treasury and other federal regulators are in the midst of the rulemaking process. This involves drafting the specific technical standards that issuers must follow. The Treasury is tasked with establishing principles to determine if state-level regulatory regimes are "substantially similar" to the federal framework. This is a crucial step for existing state-chartered issuers who wish to continue operating under the new federal law without redundant licensing requirements.

Safe Harbor Provisions

To prevent market disruption, the GENIUS Act includes "safe harbor" provisions. These allow certain entities with pending applications to continue their operations for a limited time—typically up to 12 months from the effective date—while their status as a permitted issuer is being finalized. This ensures that the liquidity of the stablecoin market remains stable during the transition from the old "wild west" era to the new regulated era.

Consumer Protection Measures

A major driver behind the GENIUS Act was the protection of retail consumers. The law introduces strict requirements regarding the reserves that back stablecoins. Issuers are required to maintain high-quality liquid assets, such as U.S. Treasuries or cash deposits, in an amount at least equal to the value of the stablecoins in circulation. This is designed to ensure that users can always redeem their stablecoins for the underlying fiat currency at a 1:1 ratio.

Cease-and-Desist Authority

The Act grants regulators significant enforcement powers. If a regulator determines that an issuer is violating the law or engaging in practices that could lead to insolvency or the dissipation of assets, they can issue temporary cease-and-desist orders. These powers are modeled after Section 8 of the Federal Deposit Insurance Act, giving crypto regulators tools similar to those used to manage traditional banks. This proactive approach is intended to catch potential failures before they result in significant losses for the public.

Foreign Issuer Oversight

The GENIUS Act also addresses the global nature of the crypto market. It allows foreign payment stablecoin issuers (FPSIs) to offer their assets in the United States, provided the Department of the Treasury determines that their home country has a regulatory regime comparable to that of the U.S. This "comparability" standard ensures that foreign entities cannot bypass U.S. consumer protection laws simply by basing their operations offshore.

Impact on Markets

The passage of the GENIUS Act has already begun to reshape the digital asset ecosystem in 2026. By providing a clear legal pathway for stablecoins, the law has encouraged more traditional financial institutions to enter the space. Many banks are now exploring the issuance of their own "permitted payment stablecoins," viewing them as a more efficient way to handle cross-border payments and settlement.

For traders, the increased regulation has generally led to higher confidence in the stability of these assets. While some critics argue that the strict AML and KYC requirements reduce the privacy of digital transactions, proponents point out that institutional adoption would be impossible without such safeguards. As the market matures, the focus is shifting toward how these regulated stablecoins will integrate with decentralized finance (DeFi) and other emerging technologies. For those interested in the broader market, including spot trading of major assets, the clarity provided by the GENIUS Act is seen as a foundational step for long-term growth.

Future Policy Discussions

While the GENIUS Act is now law, it is not the end of the conversation. Policy discussions in 2026 are already moving toward broader market structure issues and the potential for a strategic Bitcoin reserve. The implementation of the GENIUS Act will likely serve as a blueprint for how the U.S. government approaches other areas of the crypto economy, such as decentralized exchanges and lending protocols. The success of this regulatory experiment will be closely watched by other nations as they develop their own digital asset frameworks.