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Public Law 119–27: To provide for the regulation of payment stablecoins, and for other purposes. 
 Public Law 27 
 Public Law 119–27 139 Stat. 419 
 2025-07-18 
 2025-07-18 
 United States Government Publishing Office National Archives and Records Administration Office of the Federal Register text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. 
 GPO Locator to USLM Converter 4.12.3;Stage2.20240826 2025-08-07 
 119 public 
 
 PUBLIC LAW 119–27—JULY 18, 2025 
 139 STAT. 419 
 Public Law 119–27 
 119th Congress 
 
 
 
 An Act 
 To provide for the regulation of payment stablecoins, and for other purposes. July 18, 2025 [ S. 1582 ] 
 
   Be it enacted by the Senate and House of Representa­tives of the United States of America in Congress assembled, Guiding and Establishing National Innovation for U.S. Stablecoins Act. 
 SECTION 1. 12 USC 5901 note . 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. 12 USC 5901 . 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 139 STAT. 420 (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; 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— 139 STAT. 421 (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; 139 STAT. 422 (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 is— (A) a subsidiary of an insured depository institution that has been approved to issue payment stablecoins under section 5; (B) a Federal qualified payment stablecoin issuer; or (C) a State qualified payment stablecoin issuer. (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) Stablecoin certification review committee .— The term “ Stablecoin Certification Review Committee ” means the committee of that name and having the functions as provided in this Act— (A) of which— (i) the Secretary of the Treasury shall serve as Chair; and (ii) the Chair of the Board (or the Vice Chair for Supervision, as delegated by the Chair of the Board), and the Chair of the Corporation shall serve as members; and 139 STAT. 423 (B) which, unless otherwise specified in this Act, shall act by ⅔ vote of its members at any meeting called by the Chair or by unanimous written consent. (28) 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. (29) 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) ). (30) 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. (31) 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. (32) Subsidiary .— The term “ subsidiary ” has the meaning given that term in section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ). (33) 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. 12 USC 5902 . 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) Effective date. 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 a 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) Compliance. Foreign payment stablecoin issuers .— It shall be unlawful for any digital asset service provider to offer, sell, or otherwise make available in the United States a payment 139 STAT. 424 
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 and any reciprocal arrangement pursuant to section 18. (c) Determinations. 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) Applicability. apply to a de minimis volume of transactions, as determined by the Secretary of the Treasury. (2) Unusual and exigent circumstances .— (A) In general .— If the Secretary of the Treasury determines that unusual and exigent circumstances exist, the Secretary may provide limited safe harbors from subsection (a). (B) Justification .— Prior to issuing a limited safe harbor under this paragraph, the Secretary of the Treasury shall submit to the chairs and ranking members of the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a justification for the determination of the unusual and exigent circumstances, which may be contained in a classified annex, as applicable. (d) Rulemaking .— Consistent with section 13, the Secretary of the Treasury shall issue regulations to implement this section, including regulations to define 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 as a cash equivalent for accounting purposes; (2) eligible as cash or as 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 settlement among banking organizations. (h) Rules of Construction .— (1) Exempt transactions .— This section shall not apply to— 139 STAT. 425 (A) the direct transfer of digital assets between 2 individuals acting on their own behalf and for their own lawful purposes, without the involvement of an intermediary; (B) to any transaction involving the receipt of digital assets by an individual between an account owned by the individual in the United States and an account owned by the individual abroad that are offered by the same parent company; or (C) to any transaction by means of a software or hardware wallet that facilitates an individual’s own custody of digital assets. (2) Treasury authority .— Nothing in this Act shall alter the existing authority of the Secretary of the Treasury to block, restrict, or limit transactions involving payment stablecoins that reference or are denominated in United States dollars that are subject to the jurisdiction of the United States. 
 SEC. 4. 12 USC 5903 . REQUIREMENTS FOR ISSUING PAYMENT STABLECOINS. (a) Standards for the Issuance of Payment Stablecoins .— (1) In general .— A permitted payment stablecoin issuer shall— (A) maintain identifiable reserves backing the outstanding payment stablecoins of the permitted payment stablecoin issuer on an at least 1 to 1 basis, with reserves comprising— (i) United States coins and currency (including Federal Reserve notes) or money standing to the credit of an account with a Federal Reserve Bank; (ii) funds held as demand deposits (or other deposits that may be withdrawn upon request at any time) or insured shares at an insured depository institution (including any foreign branches or agents, including correspondent banks, of an insured depository institution), subject to limitations established by the Corporation and the National Credit Union Administration, as applicable, to address safety and soundness risks of such insured depository institution; (iii) Time period. Treasury bills, notes, or bonds— (I) with a remaining maturity of 93 days or less; or (II) issued with a maturity of 93 days or less; (iv) Time period. money received under repurchase agreements, with the permitted payment stablecoin issuer acting as a seller of securities and with an overnight maturity, that are backed by Treasury bills with a maturity of 93 days or less; (v) reverse repurchase agreements, with the permitted payment stablecoin issuer acting as a purchaser of securities and with an overnight maturity, that are collateralized by Treasury notes, bills, or bonds on an overnight basis, subject to overcollateralization in line with standard market terms, that are— (I) tri-party; (II) centrally cleared through a clearing agency registered with the Securities and Exchange Commission; or 139 STAT. 426 (III) bilateral with a counterparty that the issuer has determined to be adequately creditworthy even in the event of severe market stress; (vi) securities issued by an investment company registered under section 8(a) of the Investment Company Act of 1940 ( 15 U.S.C. 80a–8(a) ), or other registered Government money market fund, and that are invested solely in underlying assets described in clauses (i) through (v); (vii) any other similarly liquid Federal Government-issued asset approved by the primary Federal payment stablecoin regulator, in consultation with the State payment stablecoin regulator, if applicable, of the permitted payment stablecoin issuer; or (viii) Compliance. any reserve described in clause (i) through (iii) or clause (vi) through (vii) in tokenized form, provided that such reserves comply with all applicable laws and regulations; (B) Public information. publicly disclose the issuer’s redemption policy, which shall— (i) Procedures. establish clear and conspicuous procedures for timely redemption of outstanding payment stablecoins, provided that any discretionary limitations on timely redemptions can only be imposed by a State qualified payment stablecoin regulator, the Corporation, the Comptroller, or the Board, consistent with section 7; and (ii) Time period. Notice. publicly, clearly, and conspicuously disclose in plain language all fees associated with purchasing or redeeming the payment stablecoins, provided that such fees can only be changed upon not less than 7 days’ prior notice to consumers; and (C) Web posting. publish the monthly composition of the issuer’s reserves on the website of the issuer, containing— (i) the total number of outstanding payment stablecoins issued by the issuer; and (ii) the amount and composition of the reserves described in subparagraph (A), including the average tenor and geographic location of custody of each category of reserve instruments. (2) Prohibition on rehypothecation .— Reserves required under paragraph (1)(A) may not be pledged, rehypothecated, or reused by the permitted payment stablecoin issuer, either directly or indirectly, except for the purpose of— (A) satisfying margin obligations in connection with investments in permitted reserves under clauses (iv) and (v) of paragraph (1)(A); (B) satisfying obligations associated with the use, receipt, or provision of standard custodial services; or (C) Time period. creating liquidity to meet reasonable expectations of requests to redeem payment stablecoins, such that reserves in the form of Treasury bills may be sold as purchased securities for repurchase agreements with a maturity of 93 days or less, provided that either— (i) the repurchase agreements are cleared by a clearing agency registered with the Securities and Exchange Commission; or 139 STAT. 427 (ii) Advance approval. the permitted payment stablecoin issuer receives the prior approval of its primary Federal payment stablecoin regulator or State payment stablecoin regulator, as applicable. (3) Monthly certification; examination of reports by registered public accounting firm .— (A) In general .— A permitted payment stablecoin issuer shall, each month, have the information disclosed in the previous month-end report required under paragraph (1)(D) examined by a registered public accounting firm. (B) Certification .— Each month, the Chief Executive Officer and Chief Financial Officer of a permitted payment stablecoin issuer shall submit a certification as to the accuracy of the monthly report to, as applicable— (i) the primary Federal payment stablecoin regulator of the permitted payment stablecoin issuer; or (ii) the State payment stablecoin regulator of the permitted payment stablecoin issuer. (C) Criminal penalty .— Any person who submits a certification required under subparagraph (B) knowing that such certification is false shall be subject to the same criminal penalties as those set forth under section 1350(c) of title 18, United States Code . (4) Capital, liquidity, and risk management requirements .— (A) In general .— The primary Federal payment stablecoin regulators shall, or in the case of a State qualified payment stablecoin issuer, the State payment stablecoin regulator shall, consistent with section 13, issue regulations implementing— (i) capital requirements applicable to permitted payment stablecoin issuers that— (I) are tailored to the business model and risk profile of permitted payment stablecoin issuers; (II) do not exceed requirements that are sufficient to ensure the ongoing operations of permitted payment stablecoin issuers; and (III) Determination. in the case of the primary Federal payment stablecoin regulators, if the primary Federal payment stablecoin regulators determine that a capital buffer is necessary to ensure the ongoing operations of permitted payment stablecoin issuers, may include capital buffers that are tailored to the business model and risk profile of permitted payment stablecoin issuers; (ii) the liquidity standard under paragraph (1)(A); (iii) reserve asset diversification, including deposit concentration at banking institutions, and interest rate risk management standards applicable to permitted payment stablecoin issuers that— (I) are tailored to the business model and risk profile of permitted payment stablecoin issuers; and (II) do not exceed standards that are sufficient to ensure the ongoing operations of permitted payment stablecoin issuers; and 139 STAT. 428 (iv) appropriate operational, compliance, and information technology risk management principles-based requirements and standards, including Bank Secrecy Act and sanctions compliance standards, that— (I) are tailored to the business model and risk profile of permitted payment stablecoin issuers; and (II) are consistent with applicable law. (B) Rule of construction .— Nothing in this paragraph shall be construed to limit— (i) the authority of the primary Federal payment stablecoin regulators, in prescribing standards under this paragraph, to tailor or differentiate among issuers on an individual basis or by category, taking into consideration the capital structure, business model risk profile, complexity, financial activities (including financial activities of subsidiaries), size, and any other risk-related factors of permitted payment stablecoin issuers that a primary Federal payment stablecoin regulator determines appropriate, provided that such tailoring or differentiation occurs without respect to whether a permitted payment stablecoin issuer is regulated by a State payment stablecoin regulator; or (ii) any supervisory, regulatory, or enforcement authority of a primary Federal payment stablecoin regulator to further the safe and sound operation of an institution for which the primary Federal payment stablecoin regulator is the appropriate regulator. (C) Applicability of existing capital standards .— (i) Definition .— In this subparagraph, the term “ depository institution holding company ” has the meaning given that term under section 171(a)(3) of the Financial Stability Act of 2010 ( 12 U.S.C. 5371(a)(3) ). (ii) Applicability of financial stability act .— With respect to the promulgation of rules under subparagraph (A) and clauses (iii) and (iv) of this subparagraph, section 171 of the Financial Stability Act of 2010 ( 12 U.S.C. 5371 ) shall not apply. (iii) Rules relating to leverage capital requirements or risk-based capital requirements .— Any rule issued by an appropriate Federal banking agency that imposes, on a consolidated basis, a leverage capital requirement or risk-based capital requirement with respect to an insured depository institution or depository institution holding company shall provide that, for purposes of such leverage capital requirement or risk-based capital requirement, any insured depository institution or depository institution holding company that includes, on a consolidated basis, a permitted payment stablecoin issuer, shall not be required to hold, with respect to such permitted payment stablecoin issuer and its assets and operations, any amount of regulatory capital in excess of the capital that such permitted payment stablecoin issuer must maintain under the capital requirements issued pursuant to subparagraph (A)(i). 139 STAT. 429 (iv) Deadline. Compliance. Modifications .— Not later than the earlier of the rulemaking deadline under section 13 or the date on which the Federal payment stablecoin regulators issue regulations to carry out this section, each appropriate Federal banking agency shall amend or otherwise modify any regulation of the appropriate Federal banking agency described in clause (iii) so that such regulation, as amended or otherwise modified, complies with clause (iii) of this subparagraph. (5) Treatment under the bank secrecy act and sanctions laws .— (A) Applicability. In general .— A permitted payment stablecoin issuer shall be treated as a financial institution for purposes of the Bank Secrecy Act, and as such, shall be subject to all Federal laws applicable to a financial institution located in the United States relating to economic sanctions, prevention of money laundering, customer identification, and due diligence, including— (i) Risk assessments. Designation. maintenance of an effective anti-money laundering program, which shall include appropriate risk assessments and designation of an officer to supervise the program; (ii) Records. retention of appropriate records; (iii) monitoring and reporting of any suspicious transaction relevant to a possible violation of law or regulation; (iv) Policies. Procedures. technical capabilities, policies, and procedures to block, freeze, and reject specific or impermissible transactions that violate Federal or State laws, rules, or regulations; (v) Verification. maintenance of an effective customer identification program, including identification and verification of account holders with the permitted payment stablecoin issuer, high-value transactions, and appropriate enhanced due diligence; and (vi) Verification. Lists. maintenance of an effective economic sanctions compliance program, including verification of sanctions lists, consistent with Federal law. (B) Rulemaking .— The Secretary of the Treasury shall adopt rules, tailored to the size and complexity of permitted payment stablecoin issuers, to implement subparagraph (A). (C) Reservation of authority .— Nothing in this Act shall restrict the authority of the Secretary of the Treasury to implement, administer, and enforce the provisions of subchapter II of chapter 53 of title 31, United States Code . (6) Coordination with permitted payment stablecoin issuers with respect to blocking of property and technological capabilities to comply with lawful orders .— (A) In general .— The Secretary of the Treasury— (i) shall, to the best of the Secretary’s ability, coordinate with a permitted payment stablecoin issuer before taking any action to block and prohibit transactions in property and interests in property of a foreign person to ensure that the permitted payment stablecoin issuer is able to effectively block a payment 139 STAT. 430 
stablecoin of the foreign person upon issuance of the payment stablecoin; and (ii) is not required to notify any permitted payment stablecoin issuer of any intended action described in clause (i) prior to taking such action. (B) Compliance with lawful orders .— A permitted payment stablecoin issuer may issue payment stablecoins only if the issuer has the technological capability to comply, and will comply, with the terms of any lawful order. (C) Report required .— Not later than 1 year after the date of enactment of this Act, the Attorney General and the Secretary of the Treasury shall submit to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a report, which may include a classified annex if applicable, on the coordination with permitted payment stablecoin issuers required under subparagraph (A). (D) Rule of construction .— Nothing in this paragraph shall be construed to alter or affect the authority of State payment stablecoin regulators with respect to the offer of foreign-issued digital assets that are issued within a foreign jurisdiction. (7) Limitation on payment stablecoin activities .— (A) In general .— A permitted payment stablecoin issuer may only— (i) issue payment stablecoins; (ii) redeem payment stablecoins; (iii) manage related reserves, including purchasing, selling, and holding reserve assets or providing custodial services for reserve assets, consistent with State and Federal law; (iv) provide custodial or safekeeping services for payment stablecoins, required reserves, or private keys of payment stablecoins, consistent with this Act; and (v) undertake other activities that directly support any of the activities described in clauses (i) through (iv). (B) Rule of construction .— Nothing in subparagraph (A) shall limit a permitted payment stablecoin issuer from engaging in payment stablecoin activities or digital asset service provider activities specified by this Act, and activities incidental thereto, that are authorized by the primary Federal payment stablecoin regulator or the State payment stablecoin regulator, as applicable, consistent with all other Federal and State laws, provided that the claims of payment stablecoin holders rank senior to any potential claims of non-stablecoin creditors with respect to the reserve assets, consistent with section 11. (8) Prohibition on tying .— (A) In general .— A permitted payment stablecoin issuer may not provide services to a customer on the condition that the customer obtain an additional paid product or service from the permitted payment stablecoin issuer, or any of its subsidiaries, or agree to not obtain an additional product or service from a competitor. 139 STAT. 431 (B) Regulations .— The Board may issue such regulations as are necessary to carry out this paragraph, and, in consultation with other relevant primary Federal payment stablecoin regulators, may by regulation or order, permit such exceptions to subparagraph (A) as the Board considers will not be contrary to the purpose of this Act. (9) Prohibition on the use of deceptive names .— (A) In general .— A permitted payment stablecoin issuer may not— (i) use any combination of terms relating to the United States Government, including “United States”, “United States Government”, and “USG” in the name of a payment stablecoin; or (ii) market a payment stablecoin in such a way that a reasonable person would perceive the payment stablecoin to be— (I) legal tender, as described in section 5103 of title 31, United States Code ; (II) issued by the United States; or (III) guaranteed or approved by the Government of the United States. (B) Pegged stablecoins .— Abbreviations directly relating to the currency to which a payment stablecoin is pegged, such as “USD”, are not subject to the prohibitions in subparagraph (A). (10) Audits and reports .— (A) Annual financial statement .— (i) In general .— A permitted payment stablecoin issuer with more than $50,000,000,000 in consolidated total outstanding issuance, that is not subject to the reporting requirements under section 13(a) or 15(d) of the Securities and Exchange Act of 1934 ( 15 U.S.C. 78m , 78o(d)), shall prepare, in accordance with generally accepted accounting principles, an annual financial statement, which shall include the disclosure of any related party transactions, as defined by such generally accepted accounting principles. (ii) Auditor .— A registered public accounting firm shall perform an audit of the annual financial statements described in clause (i). (iii) Standards .— An audit described in clause (ii) shall be conducted in accordance with all applicable auditing standards established by the Public Company Accounting Oversight Board, including those relating to auditor independence, internal controls, and related party transactions. (iv) Rule of construction .— Nothing in this subparagraph shall be construed to limit, alter, or expand the jurisdiction of the Public Company Accounting Oversight Board over permitted payment stablecoin issuers or registered public accounting firms. (B) Public disclosure and submission to federal regulators .— Each permitted payment stablecoin issuer required to prepare an audited annual financial statement under subparagraph (A) shall— 139 STAT. 432 (i) make such audited financial statements publicly available on the website of the permitted payment stablecoin issuer; and (ii) submit such audited financial statements annually to their primary Federal payment stablecoin regulator. (C) Consultation .— The primary Federal payment stablecoin regulators may consult with the Public Company Accounting Oversight Board to determine best practices for determining audit oversight and to detect fraud, material misstatements, and other financial misrepresentations that could mislead permitted payment stablecoin holders. (11) Prohibition on interest .— No permitted payment stablecoin issuer or foreign payment stablecoin issuer shall pay the holder of any payment stablecoin any form of interest or yield (whether in cash, tokens, or other consideration) solely in connection with the holding, use, or retention of such payment stablecoin. (12) Compliance. Non-financial services public companies .— (A) Definitions .— In this paragraph: (i) Financial activities .— The term “ financial activities ”— (I) has the meaning given that term in section 4(k) of the Bank Holding Company Act of 1956 ( 12 U.S.C. 1843(k) ); and (II) for the avoidance of doubt, includes those activities described in subparagraphs (A) and (B) of section 2(7) and section 4(a)(7)(A) of this Act. (ii) Public company .— The term “ public company ” means an issuer that is required to file reports under section 13(a) or 15(d) of the Securities Exchange Act of 1934 ( 15 U.S.C. 78m(a) , 78o(d)). (B) Prohibition .— (i) In general .— A public company that is not predominantly engaged in 1 or more financial activities, and its wholly or majority owned subsidiaries or affiliates, may not issue a payment stablecoin unless the public company obtains a unanimous vote of the Stablecoin Certification Review Committee finding that— (I) it will not pose a material risk to the safety and soundness of the United States banking system, the financial stability of the United States, or the Deposit Insurance Fund; (II) Consent. the public company will comply with data use limitations providing that, unless the public company receives consent from the consumer, nonpublic personal information obtained from stablecoin transaction data may not be— (aa) used to target, personalize, or rank advertising or other content; (bb) sold to any third party; or (cc) shared with non-affiliates; and (III) the public company and the affiliates of the public company will comply with the tying prohibitions under paragraph (8). 139 STAT. 433 (ii) Exception .— The prohibition under clause (i) against the sharing of consumer information shall not apply to sharing of such information— (I) to comply with Federal, State, or local laws, rules, and other applicable legal requirements; (II) to comply with a properly authorized civil, criminal, or regulatory investigation, subpoena, or summons by a Federal, State, or local authority; or (III) to respond to judicial process or a government regulatory authority having jurisdiction over the public company. (C) Extension of prohibition .— (i) In general .— Any company not domiciled in the United States or its Territories that is not predominantly engaged in 1 or more financial activities, may not issue a payment stablecoin unless the public company obtains a unanimous vote of the Stablecoin Certification Review Committee finding that— (I) it will not pose a material risk to the safety and soundness of the United States banking system, the financial stability of the United States, or the Deposit Insurance Fund; (II) Consent. the public company will comply with data use limitations providing that, unless the public company receives consent from the consumer, nonpublic personal information obtained from stablecoin transaction data may not be— (aa) used to target, personalize, or rank advertising or other content; (bb) sold to any third party; or (cc) shared with non-affiliates; except (III) the public company and the affiliates of the public company will comply with the tying prohibitions under paragraph (8). (ii) Exception .— The prohibition under clause (i) against the sharing of consumer information shall not apply to sharing of such information— (I) to comply with Federal, State, or local laws, rules, and other applicable legal requirements; (II) to comply with a properly authorized civil, criminal, or regulatory investigation, subpoena, or summons by a Federal, State, or local authority; or (III) to respond to judicial process or a government regulatory authority having jurisdiction over the public company. (D) Deadline. Rulemaking .— Not later than 1 year after the date of enactment of this Act, the Stablecoin Certification Review Committee shall issue an interpretive rule clarifying the application of this paragraph. (13) Eligibility .— Nothing in this Act shall be construed as expanding or contracting legal eligibility to receive services available from a Federal Reserve bank or to make deposits with a Federal Reserve bank, in each case pursuant to the Federal Reserve Act. 139 STAT. 434 (14) Rule of construction .— Compliance with this section does not alter or affect any additional requirement of a State payment stablecoin regulator that may apply relating to the offering of payment stablecoins. (b) Regulation by the Comptroller .— (1) In general .— Notwithstanding section 5136C of the Revised Statutes ( 12 U.S.C. 25b ), section 6 of the Home Owners’ Loan Act ( 12 U.S.C. 1465 ), or any applicable State law relating to licensing and supervision, a Federal qualified payment stablecoin issuer approved by the Comptroller pursuant to section 5 of this Act shall be licensed, regulated, examined, and supervised exclusively by the Comptroller, which shall have authority, in coordination with other relevant primary Federal payment stablecoin regulators and State payment stablecoin regulators, to issue such regulations and orders as necessary to ensure financial stability and implement subsection (a). (2) Conforming amendment .— Section 324(b) of the Revised Statutes ( 12 U.S.C. 1(b) ) is amended by adding at the end the following: “(3) Regulation of federal qualified payment stablecoin issuers .— The Comptroller of the Currency shall, in coordination with other relevant regulators and consistent with section 13 of the GENIUS Act, issue such regulations and orders as necessary to ensure financial stability and implement section 4(a) of that Act.” . (c) State-level Regulatory Regimes .— (1) Option for state-level regulatory regime .— Notwithstanding the Federal regulatory framework established under this Act, a State qualified payment stablecoin issuer with a consolidated total outstanding issuance of not more than $10,000,000,000 may opt for regulation under a State-level regulatory regime, provided that the State-level regulatory regime is substantially similar to the Federal regulatory framework under this Act. (2) Notice. Determination. Principles .— The Secretary of the Treasury shall, through notice and comment rulemaking, establish broad-based principles for determining whether a State-level regulatory regime is substantially similar to the Federal regulatory framework under this Act. (3) Contracts. Review .— State payment stablecoin regulators shall review State-level regulatory regimes according to the principles established by the Secretary of the Treasury under paragraph (2) and for the purposes of establishing any necessary cooperative agreements to implement section 7(f). (4) Deadlines. Certification .— (A) Initial certification .— Subject to subparagraph (B), not later than 1 year after the effective date of this Act, a State payment stablecoin regulator shall submit to the Stablecoin Certification Review Committee an initial certification that the State-level regulatory regime meets the criteria for substantial similarity established pursuant to paragraph (2). (B) Attestation. Form of certification .— The initial certification required under subparagraph (A) shall contain, in a form prescribed by the Stablecoin Certification Review Committee, an attestation that the State-level regulatory 139 STAT. 435 
regime meets the criteria for substantial similarity established pursuant to paragraph (2). (C) Annual recertification .— Not later than a date to be determined by the Secretary of the Treasury each year, a State payment stablecoin regulator shall submit to the Stablecoin Certification Review Committee an additional certification that confirms the accuracy of the initial certification submitted under subparagraph (A). (5) Certification review .— (A) Deadline. In general .— Not later than 30 days after the date on which a State payment stablecoin regulator submits an initial certification or a recertification under paragraph (4), the Stablecoin Certification Review Committee shall— (i) Approval. Determination. approve such certification if the Committee unanimously determines that the State-level regulatory regime meets or exceeds the standards and requirements described in subsection (a); or (ii) Denial. deny such certification and provide the State payment stablecoin regulator with a written explanation of the denial, describing the reasoned basis for the denial with sufficient detail to enable the State payment stablecoin regulator and State-level regulatory regime to make any changes necessary to meet or exceed the standards and requirements described in subsection (a). (B) Recertifications .— With respect to any recertification certification submitted by a State payment stablecoin regulator under paragraph (4), the Stablecoin Certification Review Committee shall only deny the recertification if— (i) the State-level regulatory regime has materially changed from the prior certification or there has been a significant change in circumstances; and (ii) the material change in the regime or significant change in circumstances described in clause (i) is such that the State-level regulatory regime will not promote the safe and sound operation of State qualified payment stablecoin issuers under its supervision. (C) Opportunity to cure .— (i) Deadline. In general .— With respect to a denial described under subparagraph (A) or (B), the Stablecoin Certification Review Committee shall provide the State payment stablecoin regulator with not less than 180 days from the date on which the State payment stablecoin regulator is notified of such denial to— (I) make such changes as may be necessary to ensure the State-level regulatory regime meets or exceeds the standards described in subsection (a); and (II) resubmit the initial certification or recertification. (ii) Determination. Deadline. Denial .— If, after a State payment stablecoin regulator resubmits an initial certification or recertification under clause (i), the Stablecoin Certification Review Committee again determines that the initial certification or recertification shall result in a denial, the Stablecoin Certification Review Committee shall, 139 STAT. 436 
not later than 30 days after such determination, provide the State payment stablecoin regulator with a written explanation for the determination. (D) Appeal of denial .— A State payment stablecoin regulator in receipt of a denial under subparagraph (C)(ii) may appeal the denial to the United States Court of Appeals for the District of Columbia Circuit. (E) Right to resubmit .— A State payment stablecoin regulator in receipt of a denial under this paragraph shall not be prohibited from resubmitting a new certification under paragraph (4). (6) Federal Register, publication. Web posting. List .— The Secretary of the Treasury shall publish and maintain in the Federal Register and on the website of the Department of the Treasury a list of States that have submitted initial certifications and recertifications under paragraph (4). (7) Expedited certifications of existing regulatory regimes .— The Deadline. Guidance. Timeline. Stablecoin Certification Review Committee shall take all necessary steps to endeavor that, with respect to a State that, within 180 days of the date of enactment of this Act, has in effect a prudential regulatory regime (including regulations and guidance) for the supervision of digital assets or payment stablecoins, the certification process under this paragraph with respect to that regime occurs on an expedited timeline after the effective date of this Act. (d) Deadlines. Effective dates. Transition to Federal Oversight .— (1) Depository institution .— A State chartered depository institution that is a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of more than $10,000,000,000 shall— (A) not later than 360 days after the payment stablecoin reaches such threshold, transition to the Federal regulatory framework of the primary Federal payment stablecoin regulator of the State chartered depository institution, which shall be administered by the State payment stablecoin regulator of the State chartered depository institution and the primary Federal payment stablecoin regulator acting jointly; or (B) beginning on the date the payment stablecoin reaches such threshold, cease issuing new payment stablecoins until the payment stablecoin is under the $10,000,000,000 consolidated total outstanding issuance threshold. (2) Other institutions .— A State qualified payment stablecoin issuer not described in paragraph (1) with a payment stablecoin with a consolidated total outstanding issuance of more than $10,000,000,000 shall— (A) not later than 360 days after the payment stablecoin reaches such threshold, transition to the Federal regulatory framework under subsection (a) administered by the relevant State payment stablecoin regulator and the Comptroller, acting in coordination; or (B) beginning on the date the payment stablecoin reaches such threshold, cease issuing new payment stablecoins until the payment stablecoin is under the $10,000,000,000 consolidated total outstanding issuance threshold. (3) Waiver .— 139 STAT. 437 (A) In general .— Notwithstanding paragraphs (1) and (2), the applicable primary Federal payment stablecoin regulator may permit a State qualified payment stablecoin issuer with a payment stablecoin with a consolidated total outstanding issuance of more than $10,000,000,000 to remain solely supervised by a State payment stablecoin regulator. (B) Determination. Criteria for waiver .— The primary Federal payment stablecoin regulator shall consider the following exclusive criteria in determining whether

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