GENIUS Act Sets Federal Rules for Payment Stablecoin Issuers

The GENIUS Act establishes a federal framework for payment stablecoin issuers, including reserve, redemption, supervision and enforcement requirements for the regulated digital-dollar market.

The law, formally the Guiding and Establishing National Innovation for U.S. Stablecoins Act, became Public Law 119-27 on July 18, 2025. It applies to permitted issuers of payment stablecoins, which are digital assets designed for payments or settlement.

Issuers must maintain identifiable reserves backing outstanding payment stablecoins on an “at least 1 to 1 basis.” Eligible reserves include U.S. currency, certain bank deposits, Treasury securities with maturities of 93 days or less, specified repurchase agreements and government money-market funds.

The framework also addresses issuer eligibility, redemptions, supervision and enforcement. It takes effect on the earlier of 18 months after enactment or 120 days after federal regulators issue final implementing regulations.

The a16z Crypto Korea Summit in Seoul is scheduled for Oct. 1, with institutional finance moving onchain listed among its areas of focus. Miles Jennings, a16z Crypto’s head of policy and general counsel, is listed as the event’s keynote speaker.

a16z Crypto has described the GENIUS Act as providing “clear rules of the road” for stablecoins in the United States.

The summit’s focus on institutional finance and blockchain-based infrastructure comes as regulators work toward implementing the stablecoin framework. The next concrete step under the law is the issuance of final implementing regulations, which will determine whether the 120-day alternative triggers the effective date before the 18-month period ends.