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The GENIUS Act of 2025 Stablecoin Legislation Adopted in the US

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On July 18, 2025, President Trump signed into law the Guiding and Establishing National Innovation for US Stablecoins Act (the GENIUS Act), legislation that establishes a regulatory framework for payment stablecoins. It is the first federal legislation on digital assets to be enacted since President Trump issued an executive order aiming to make the US the “crypto capital of the world” (for more information, see this Latham blog post). First introduced in the Senate on February 4, 2025, the bill overcame procedural hurdles to pass with bipartisan support in the Senate on June 17, 2025 (by a vote of 68 to 30) and the House of Representatives on July 17, 2025 (by a vote of 308 to 122). This Client Alert provides an overview of the GENIUS Act’s key provisions as well as a preview of other digital asset bills continuing to work their way through Congress. These other bills may provide additional regulatory clarity later this year. The GENIUS Act adopts the following key terms: In terms of

Key points The GENIUS Act, the US’s first federal legislation on digital assets, establishes a regulatory framework for payment stablecoins. Insured depository institution and insured credit union subsidiaries that issue payment stablecoins are subject to the regulatory oversight of their primary financial regulator, and federally licensed nonbank stablecoin issuers are subject to oversight by the OCC. A payment stablecoin issued by a permitted payment stablecoin issuer is not a “security” under the US federal securities laws or a “commodity” under the Commodity Exchange Act, and therefore…

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