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S.1582 — “GENIUS Act” (U.S. Stablecoin Law)

Plain-language summary of what the law is and what it changes.

S.1582 — “GENIUS Act” (Guiding and Establishing National Innovation for U.S. Stablecoins Act) is a new federal law—signed on July 18, 2025—that creates the first U.S. regulatory framework for payment stablecoins, a type of digital currency designed to maintain a stable value (usually pegged to the U.S. dollar).

📌 What the GENIUS Act Does

1. Establishes Federal Regulation for Stablecoins
   S.1582 sets up clear federal rules for payment stablecoins—cryptocurrency-like digital assets meant for payments that redeem at a fixed value, rather than mainly for investment. Before this law, such stablecoins operated with very limited federal oversight.
2. Licensing and Supervision Requirements
   It requires issuers of stablecoins to obtain licenses and follow federal rules designed to ensure safety, transparency, and regulatory compliance.
3. Reserve and Consumer Protections
   Issuers must hold reserves (like U.S. dollars or low-risk assets) to back the stablecoin’s value and adhere to audit, reporting, and anti-money-laundering standards to protect consumers.
4. Federal–State Oversight Coordination
   The law provides a framework for cooperation between federal and state regulators, so stablecoin activities under a certain size can be supervised at the state level if the state’s system meets federal standards.
5. Foreign Stablecoin Issuers Allowed (with Conditions)
   Stablecoin issuers based outside the U.S. can operate here if their home regulator’s oversight is deemed comparable and they comply with U.S. licensing and reserve requirements.

🧠 Why It Matters

The law is intended to:

• Provide legal clarity and regulatory structure for stablecoins.
• Promote innovation in digital payments and financial technology.
• Protect consumers and improve transparency in the rapidly growing stablecoin market.

📌 Controversies & Reactions

Some consumer advocates and labor groups argue the law doesn’t go far enough to protect investors and may still allow risky or insufficiently regulated activities by big tech and financial firms.

In summary: S.1582 (the GENIUS Act) is now law and sets up the first federal regulatory framework for payment stablecoins in the U.S.—aimed at balancing innovation with safety and oversight.

Sources (official):
• Congress.gov bill page: S.1582
• White House signing notice: Signed into law
• Full bill text (Congress.gov): Bill text