The GENIUS Act is the first U.S. federal law for stablecoins, digital assets designed to hold a steady value, usually $1. Signed in July 2025 with bipartisan support, it sets clear rules for who can issue stablecoins and what must back them. The full framework takes effect by January 2027, and regulators like the U.S. Treasury are finalizing the details now. Read NCA’s recent comments to the Treasury.
Clear rules matter to the 67 million Americans who hold crypto, many of whom use stablecoins to send money, pay for things, and hold dollars digitally. In NCA’s 2026 State of Crypto Holders report, nearly half of holders (49%) said greater transparency from crypto companies would further build their trust, while 39% pointed to government oversight and regulatory clarity as a trust driver. The GENIUS Act addresses both.
Under the law, issuers must hold one dollar, or another liquid asset like a short-term U.S. Treasury bill, for every stablecoin they issue. Think of a coat check: every ticket matches one coat, and the coat generally can’t be lent out while you’re away. To prove it, issuers must post a report on their website every month showing how many coins are in circulation and exactly what backs them. A registered public accounting firm examines each report, and the company’s CEO and CFO must certify to their regulator that it’s accurate. Issuers also need a license, are supervised much like banks, and must follow the same rules banks use to keep criminals out of the financial system.
For consumers and businesses, that means clearer protections. Issuers must publish how you can redeem your coins for dollars, and if an issuer were to ever fail, holders would get first claim on the money backing their coins. Issuers can’t pay interest just for holding a stablecoin or claim it’s FDIC-insured. By mid-2028, U.S. platforms will only be able to offer stablecoins from approved issuers.
Is the GENIUS Act the same as the Clarity Act?
No. The GENIUS Act is already law and covers stablecoins only. The Clarity Act is a separate bill Congress was reviewing that would have set rules for the broader crypto market, including exchanges and how other digital assets are classified, however it stalled in the Senate in September 2026.