Issuance and treatment of payment stablecoins

12 U.S.C. § 5902

• Title: 12 — Banks and Banking
• Chapter: 56 — REGULATION OF PAYMENT STABLECOINS

Text

(a) Limitation on issuers
It shall be unlawful for any person other than a permitted payment stablecoin issuer to issue a payment stablecoin in the United States.
(b) Prohibition on offers or sales
Except as provided in subsection (c) and section 5916 of this title, beginning on the date that is 3 years after July 18, 2025, it shall be unlawful for a digital asset service provider to offer or sell a payment stablecoin to a person in the United States, unless the payment stablecoin is issued by a permitted payment stablecoin issuer.
It shall be unlawful for any digital asset service provider to offer, sell, or otherwise make available in the United States a payment stablecoin issued by a foreign payment stablecoin issuer unless the foreign payment stablecoin issuer has the technological capability to comply, and will comply, with the terms of any lawful order and any reciprocal arrangement pursuant to section 5916 of this title.
(c) Limited safe harbors
The Secretary of the Treasury may issue regulations providing safe harbors from subsection (a) that are—
(A) consistent with the purposes of the 1 chapter;
(B) limited in scope; and
(C) apply 2 to a de minimis volume of transactions, as determined by the Secretary of the Treasury.
If the Secretary of the Treasury determines that unusual and exigent circumstances exist, the Secretary may provide limited safe harbors from subsection (a).
Prior to issuing a limited safe harbor under this paragraph, the Secretary of the Treasury shall submit to the chairs and ranking members of the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives a justification for the determination of the unusual and exigent circumstances, which may be contained in a classified annex, as applicable.
(d) Rulemaking
Consistent with section 5913 of this title, the Secretary of the Treasury shall issue regulations to implement this section, including regulations to define terms.
(e) Extraterritorial effect
This section is intended to have extraterritorial effect if conduct involves the offer or sale of a payment stablecoin to a person located in the United States.
(f) Penalty for violation
Whoever knowingly participates in a violation of subsection (a) shall be fined not more than $1,000,000 for each such violation, imprisoned for not more than 5 years, or both.
If a primary Federal payment stablecoin regulator has reason to believe that any person has knowingly violated subsection (a), the primary Federal payment stablecoin regulator may refer the matter to the Attorney General.
(g) Treatment
A payment stablecoin that is not issued by a permitted payment stablecoin issuer shall not be—
(1) treated as cash or as a cash equivalent for accounting purposes;
(2) eligible as cash or as a cash equivalent margin and collateral for futures commission merchants, derivative clearing organizations, broker-dealers, registered clearing agencies, and swap dealers; or
(3) acceptable as a settlement asset to facilitate wholesale payments between banking organizations or by a payment infrastructure to facilitate exchange and settlement among banking organizations.
(h) Rules of construction
This section shall not apply to—
(A) the direct transfer of digital assets between 2 individuals acting on their own behalf and for their own lawful purposes, without the involvement of an intermediary;
(B) to 3 any transaction involving the receipt of digital assets by an individual between an account owned by the individual in the United States and an account owned by the individual abroad that are offered by the same parent company; or
(C) to 3 any transaction by means of a software or hardware wallet that facilitates an individual's own custody of digital assets.
Nothing in this chapter shall alter the existing authority of the Secretary of the Treasury to block, restrict, or limit transactions involving payment stablecoins that reference or are denominated in United States dollars that are subject to the jurisdiction of the United States.

History

(Pub. L. 119–27, §3, July 18, 2025, 139 Stat. 423.)

Editorial Notes

Delayed Effective Date of Section
For delayed effective date of section, see Effective Date note below.

Editorial Notes

References in Text
This chapter, referred to in subsecs. (c)(1)(A) and (h)(2), was in the original "this Act", meaning Pub. L. 119–27, July 18, 2025, 139 Stat. 419, known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act and also as the GENIUS Act, which is classified principally to this chapter. For complete classification of this Act to the Code, see Short Title note set out under section 5901 of this title and Tables.

Statutory Notes and Related Subsidiaries

Effective Date
Section effective on the earlier of the date that is 18 months after July 18, 2025, or the date that is 120 days after the date on which the primary Federal payment stablecoin regulators issue any final regulations implementing Pub. L. 119–27, see section 20 of Pub. L. 119–27, set out as a note under section 5901 of this title.