What does GENIUS Act stand for?

GENIUS stands for Guaranteeing Essential National Infrastructure in US-Stablecoins. It is America's first comprehensive federal law regulating stablecoin issuers.

Who can issue stablecoins under the GENIUS Act?

Only insured depository institutions like banks and credit unions can issue stablecoins. Nonbank financial institutions may qualify with Federal Reserve approval.

What reserve assets does the GENIUS Act allow?

Issuers can hold physical currency, U.S. Treasury bills, repurchase agreements, and other low-risk assets approved by regulators. Reserves must equal 100% of issued stablecoins.

Does the GENIUS Act allow stablecoin interest payments?

No. The law bans stablecoin issuers from paying interest directly to holders. However, crypto exchanges have offered rewards through third-party arrangements, which banks argue circumvents the law.

GENIUS Act Explained: What the US Stablecoin Law Actually Does

Lukas

Jan 9, 2026

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6 min read

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