18.06.2025 11:08
The United States Senate recently approved the GENIUS Act, a landmark piece of legislation placing crypto stablecoins under stringent federal oversight. This follows substantial lobbying efforts by the cryptocurrency industry during the previous year's elections, resulting in the nation's first comprehensive law governing stablecoin issuance.
This new law establishes a framework for the registration, monitoring, and regulation of stablecoin issuers, empowering the government to intervene in cases of non-compliance or potential instability. The act specifically focuses on stablecoins pegged to fiat currencies, such as the US dollar, which are widely used for their relative stability and facilitate cross-border transactions amidst the volatility of other cryptocurrencies. The GENIUS Act effectively counteracts the emerging trend of crypto companies relocating operations offshore to circumvent stricter regulations.
Introduced by Senator Bill Hagerty of Tennessee on February 4th, 2025, with bipartisan support from Senators Tim Scott, Cynthia Lummis, Kirsten Gillibrand, and Angela Alsobrooks, the GENIUS Act builds upon prior legislative initiatives, including the Lummis-Gillibrand Payment Stablecoin Act of 2024. The act mandates that stablecoin issuers register as financial institutions under the Bank Secrecy Act, thereby subjecting them to stringent anti-money laundering regulations.
Significantly, the GENIUS Act imposes rigorous compliance requirements. Issuers must now adhere to anti-money laundering laws, conduct thorough background checks against sanctions lists, report suspicious activities, designate a compliance officer, and maintain comprehensive transaction records. Failure to meet these standards will result in the prohibition of operations within the United States. Furthermore, robust Know Your Customer (KYC) protocols are mandated, particularly for significant transactions, and issuers must demonstrate the ability to comply with law enforcement requests to freeze or even seize funds. This regulatory framework extends to both domestic and foreign issuers operating within the US secondary market. Non-compliance by foreign entities with legal directives will face severe consequences.
