GENIUS Act

Sponsor

Sen. Bill Hagerty (R-TN)

What It Says It Does

NO STATED PURPOSE SECTION IN STATUTE. The long title reads: an Act to provide for the regulation of payment stablecoins, and for other purposes.

What It Authorizes

Section 4

Section 4 requires a permitted payment stablecoin issuer to maintain reserves backing its outstanding payment stablecoins on at least a one to one basis. Permitted reserve assets are limited by statute to United States coins and currency, demand deposits at insured depository institutions, Treasury bills, notes, or bonds with a remaining maturity of 93 days or less or issued with a maturity of 93 days or less, repurchase agreements with a maturity of 7 days or less backed by Treasury bills, certain reverse repurchase agreements, money market funds invested solely in those assets, and central bank reserve deposits. Issuers must publish monthly reserve composition reports and disclose redemption procedures. Issuers are prohibited from paying interest to stablecoin holders.

Constitutional Tension

NONE. The Act regulates private issuers of privately created payment instruments. It does not exercise the power to coin money and regulate its value under Article I, Section 8, Clause 5, and it does not constrain any individual right. Its regulatory authority rests on the commerce power. No constitutional provision is directly implicated by its operative requirements.

Protocol Media reading. No court has ruled either way.

Sunset and Renewal

No sunset clause.

No sunset clause. The Act contains no provision for automatic expiration or periodic reauthorization.

Status verified September 2026.