[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1582 Placed on Calendar Senate (PCS)]
<DOC>
Calendar No. 66
119th CONGRESS
1st Session
S. 1582
To provide for the regulation of payment stablecoins, and for other
purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 1, 2025
Mr. Hagerty (for himself, Ms. Lummis, and Mr. Scott of South Carolina)
introduced the following bill; which was read the first time
May 5, 2025
Read the second time and placed on the calendar
_______________________________________________________________________
A BILL
To provide for the regulation of payment stablecoins, and for other
purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Guiding and Establishing National
Innovation for U.S. Stablecoins Act'' or the ``GENIUS Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate federal banking agency.--The term
``appropriate Federal banking agency'' has the meaning given
that term in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813).
(2) Bank secrecy act.--The term ``Bank Secrecy Act''
means--
(A) section 21 of the Federal Deposit Insurance Act
(12 U.S.C. 1829b);
(B) chapter 2 of title I of Public Law 91-508 (12
U.S.C. 1951 et seq.); and
(C) subchapter II of chapter 53 of title 31, United
States Code.
(3) Board.--The term ``Board'' means the Board of Governors
of the Federal Reserve System.
(4) Comptroller.--The term ``Comptroller'' means the Office
of the Comptroller of the Currency.
(5) Corporation.--The term ``Corporation'' means the
Federal Deposit Insurance Corporation.
(6) Digital asset.--The term ``digital asset'' means any
digital representation of value that is recorded on a
cryptographically secured distributed ledger.
(7) Digital asset service provider.--The term ``digital
asset service provider''--
(A) means a person that, for compensation or
profit, engages in the business in the United States
(including on behalf of customers or users in the
United States) of--
(i) exchanging digital assets for monetary
value;
(ii) exchanging digital assets for other
digital assets;
(iii) transferring digital assets to a
third party;
(iv) acting as a digital asset custodian;
or
(v) participating in financial services
relating to digital asset issuance; and
(B) does not include--
(i) a distributed ledger protocol;
(ii) developing, operating, or engaging in
the business of developing distributed ledger
protocols or self-custodial software
interfaces;
(iii) an immutable and self-custodial
software interface;
(iv) developing, operating, or engaging in
the business of validating transactions or
operating a distributed ledger node; or
(v) participating in a liquidity pool or
other similar mechanism for the provisioning of
liquidity for peer-to-peer transactions.
(8) Distributed ledger.--The term ``distributed ledger''
means technology in which data is shared across a network that
creates a public digital ledger of verified transactions or
information among network participants and cryptography is used
to link the data to maintain the integrity of the public ledger
and execute other functions.
(9) Distributed ledger protocol.--The term ``distributed
ledger protocol'' means publicly available and accessible
executable software deployed to a distributed ledger, including
smart contracts or networks of smart contracts.
(10) Federal branch.--The term ``Federal branch'' has the
meaning given that term in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813).
(11) Federal qualified payment stablecoin issuer.--The term
``Federal qualified payment stablecoin issuer'' means--
(A) a nonbank entity, other than a State qualified
payment stablecoin issuer, approved by the Comptroller,
pursuant to section 5, to issue payment stablecoins;
(B) an uninsured national bank--
(i) that is chartered by the Comptroller,
pursuant to title LXII of the Revised Statutes;
and
(ii) that is approved by the Comptroller,
pursuant to section 5, to issue payment
stablecoins; and
(C) a Federal branch that is approved by the
Comptroller, pursuant to section 5, to issue payment
stablecoins.
(12) Foreign payment stablecoin issuer.--The term ``foreign
payment stablecoin issuer'' means an issuer of a payment
stablecoin that is--
(A) organized under the laws of or domiciled in a
foreign country, a territory of the United States,
Puerto Rico, Guam, American Samoa, or the Virgin
Islands; and
(B) not a permitted payment stablecoin issuer.
(13) Institution-affiliated party.--With respect to a
permitted payment stablecoin issuer, the term ``institution-
affiliated party'' means any director, officer, employee, or
controlling stockholder of the permitted payment stablecoin
issuer.
(14) Insured credit union.--The term ``insured credit
union'' has the meaning given that term in section 101 of the
Federal Credit Union Act (12 U.S.C. 1752).
(15) Insured depository institution.--The term ``insured
depository institution'' means--
(A) an insured depository institution, as defined
in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813); and
(B) an insured credit union.
(16) Lawful order.--The term ``lawful order'' means any
final and valid writ, process, order, rule, decree, command, or
other requirement issued or promulgated under Federal law,
issued by a court of competent jurisdiction or by an authorized
Federal agency pursuant to its statutory authority, that--
(A) requires a person to seize, freeze, burn, or
prevent the transfer of payment stablecoins issued by
the person;
(B) specifies the payment stablecoins or accounts
subject to blocking with reasonable particularity; and
(C) is subject to judicial or administrative review
or appeal as provided by law.
(17) Monetary value.--The term ``monetary value'' means a
national currency or deposit (as defined in section 3 of the
Federal Deposit Insurance Act (12 U.S.C. 1813)) denominated in
a national currency.
(18) Money.--The term ``money''--
(A) means a medium of exchange currently authorized
or adopted by a domestic or foreign government; and
(B) includes a monetary unit of account established
by an intergovernmental organization or by agreement
between 2 or more countries.
(19) National currency.--The term ``national currency''
means each of the following:
(A) A Federal Reserve note (as the term is used in
the first undesignated paragraph of section 16 of the
Federal Reserve Act (12 U.S.C. 411)).
(B) Money standing to the credit of an account with
a Federal Reserve Bank.
(C) Money issued by a foreign central bank.
(D) Money issued by an intergovernmental
organization pursuant to an agreement by 2 or more
governments.
(20) Nonbank entity.--The term ``nonbank entity'' means a
person that is not a depository institution or subsidiary of a
depository institution.
(21) Offer.--The term ``offer'' means to make available for
purchase, sale, or exchange.
(22) Payment stablecoin.--The term ``payment stablecoin''--
(A) means a digital asset--
(i) that is, or is designed to be, used as
a means of payment or settlement; and
(ii) the issuer of which--
(I) is obligated to convert,
redeem, or repurchase for a fixed
amount of monetary value, not including
a digital asset denominated in a fixed
amount of monetary value; and
(II) represents that such issuer
will maintain, or create the reasonable
expectation that it will maintain, a
stable value relative to the value of a
fixed amount of monetary value; and
(B) does not include a digital asset that--
(i) is a national currency;
(ii) is a deposit (as defined in section 3
of the Federal Deposit Insurance Act (12 U.S.C.
1813)), including a deposit recorded using
distributed ledger technology; or
(iii) is a security, as defined in section
2 of the Securities Act of 1933 (15 U.S.C.
77b), section 3 of the Securities Exchange Act
of 1934 (15 U.S.C. 78c), or section 2 of the
Investment Company Act of 1940 (15 U.S.C. 80a-
2), except that, for the avoidance of doubt, no
bond, note, evidence of indebtedness, or
investment contract that was issued by a
permitted payment stablecoin issuer shall
qualify as a security solely by virtue of its
satisfying the conditions described in
subparagraph (A), consistent with section 17 of
this Act.
(23) Permitted payment stablecoin issuer.--The term
``permitted payment stablecoin issuer'' means a person formed
in the United States that--
(A) is--
(i) a subsidiary of an insured depository
institution that has been approved to issue
payment stablecoins under section 5;
(ii) a Federal qualified payment stablecoin
issuer; or
(iii) a State qualified payment stablecoin
issuer; and
(B) does not offer a payment of yield or interest
on its issued payment stablecoin.
(24) Person.--The term ``person'' means an individual,
partnership, company, corporation, association, trust, estate,
cooperative organization, or other business entity,
incorporated or unincorporated.
(25) Primary federal payment stablecoin regulator.--The
term ``primary Federal payment stablecoin regulator'' means--
(A) with respect to a subsidiary of an insured
depository institution (other than an insured credit
union), the appropriate Federal banking agency of such
insured depository institution;
(B) with respect to an insured credit union or a
subsidiary of an insured credit union, the National
Credit Union Administration;
(C) with respect to a State chartered depository
institution not specified under subparagraph (A), the
Corporation, the Comptroller, or the Board; and
(D) with respect to a Federal qualified payment
stablecoin issuer, the Comptroller.
(26) Registered public accounting firm.--The term
``registered public accounting firm'' has the meaning given
that term under section 2 of the Sarbanes-Oxley Act of 2002 (15
U.S.C. 7201).
(27) State.--The term ``State'' means each of the several
States of the United States, the District of Columbia, and each
territory of the United States.
(28) State chartered depository institution.--The term
``State chartered depository institution'' has the meaning
given the term ``State depository institution'' in section 3(c)
of the Federal Deposit Insurance Act (12 U.S.C. 1813(c)).
(29) State payment stablecoin regulator.--The term ``State
payment stablecoin regulator'' means a State agency that has
primary regulatory and supervisory authority in such State over
entities that issue payment stablecoins.
(30) State qualified payment stablecoin issuer.--The term
``State qualified payment stablecoin issuer'' means an entity
that--
(A) is legally established under the laws of a
State and approved to issue payment stablecoins by a
State payment stablecoin regulator; and
(B) is not an uninsured national bank chartered by
the Comptroller pursuant to title LXII of the Revised
Statutes, a Federal branch, an insured depository
institution, or a subsidiary of such national bank,
Federal branch, or insured depository institution.
(31) Subsidiary.--The term ``subsidiary'' has the meaning
given that term in section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813).
(32) Subsidiary of an insured credit union.--With respect
to an insured credit union, the term ``subsidiary of an insured
credit union'' means--
(A) an organization providing services to the
insured credit union that are associated with the
routine operations of credit unions, as described in
section 107(7)(I) of the Federal Credit Union Act (12
U.S.C. 1757(7)(I));
(B) a credit union service organization, as such
term is used under part 712 of title 12, Code of
Federal Regulations, with respect to which the insured
credit union has an ownership interest or to which the
insured credit union has extended a loan; and
(C) a subsidiary of a State chartered insured
credit union authorized under State law.
SEC. 3. ISSUANCE AND TREATMENT OF PAYMENT STABLECOINS.
(a) Limitation on Issuers.--It shall be unlawful for any person
other than a permitted payment stablecoin issuer to issue a payment
stablecoin in the United States.
(b) Prohibition on Offers or Sales.--
(1) In general.--Except as provided in subsection (c) and
section 18, beginning on the date that is 3 years after the
date of enactment of this Act, it shall be unlawful for any
digital asset service provider to offer or sell a payment
stablecoin to a person in the United States, unless the payment
stablecoin is issued by a permitted payment stablecoin issuer.
(2) Foreign payment stablecoin issuers.--It shall be
unlawful for any person to offer, sell, or otherwise make
available in the United States a payment stablecoin issued by a
foreign payment stablecoin issuer unless the foreign payment
stablecoin issuer has the technological capability to comply,
and will comply, with the terms of any lawful order or
reciprocal arrangement pursuant to section 18.
(c) Limited Safe Harbors.--
(1) In general.--The Secretary of the Treasury may issue
regulations providing safe harbors from subsection (a) that
are--
(A) consistent with the purposes of the Act;
(B) limited in scope; and
(C) apply to a de minimis volume of transactions,
as determined by the Secretary of the Treasury.
(2) Unusual and exigent circumstances.--If the Secretary of
the Treasury determines that unusual and exigent circumstances
exist, the Secretary may provide limited safe harbors from
subsection (a).
(d) Rulemaking.--The Secretary of the Treasury may, as the
Secretary determines appropriate, issue regulations to implement this
section, including regulations to define statutory terms.
(e) Extraterritorial Effect.--This section is intended to have
extraterritorial effect if conduct involves the offer or sale of a
payment stablecoin to a person located in the United States.
(f) Penalty for Violation.--
(1) In general.--Whoever knowingly participates in a
violation of subsection (a) shall be fined not more than
$1,000,000 for each such violation, imprisoned for not more
than 5 years, or both.
(2) Referral to attorney general.--If a primary Federal
payment stablecoin regulator has reason to believe that any
person has knowingly violated subsection (a), the primary
Federal payment stablecoin regulator may refer the matter to
the Attorney General.
(g) Treatment.--A payment stablecoin that is not issued by a
permitted payment stablecoin issuer shall not be--
(1) treated as cash or a cash equivalent for accounting
purposes;
(2) eligible as cash or a cash equivalent margin and
collateral for futures commission merchants, derivative
clearing organizations, broker-dealers, registered clearing
agencies, and swap dealers; or
(3) acceptable as a settlement asset to facilitate
wholesale payments between banking organizations or by a
payment infrastructure to facilitate exchange and settleme