“Guiding and Establishing National Innovation for U.S. Stablecoins Act”
To provide for the regulation of payment stablecoins, and for other purposes.
- Starting in 2028, it will become “unlawful” for any “digital asset service provider” designated as a “permitted payment coin issuer” to sell or offer a digital assest that is considered to hold monetary value as a form of payment or settlement on a debt. This does not pertain to digital assets that are not considered national currency.
- Foreign powers also offering stable coins will be allowed to issue them within the jurisdiction of the United States under the conditions that:
1. They are also recognized as a legitimate “issuer” within their own jurisdiction, being subjected to oversight and regulation established in that jurisdiction. Additionally, the established regulations of the foreign jurisdiction must be approved by the Secretary of the Treasury as being comparable to the requirements governing to the requirements governing the use of stablecoins payment under this Act.
2. The foreign issuer must be registered with the United States Comptroller.
3.The foreign issuer has liquidity reserves held within a United States institution that is sufficient to meet the demands of United States customers, unless they are operating under an exception.
4. The foreign issuer does not reside in a jurisdiction that has been placed under economic sanction by the United States government, or has been determined by the Secretary of Treasury to be a place where high level money laundering occurs (These are listed, in addition to other stipulations required under Section 18 in full at Congress.gov).
Authorized issuers of payment stablecoins must follow certain requirements to maintain the standards as set forth in this Act. Here are some:
-Must maintain reserves that, at the very least, the equivalent of the amount of payment stable coins the issuer has outstanding (1 to 1 ratio). These reserves can consist of coins, credit, and cash.
-In addition to having “clear and conspicuous procedures for timely redemption of outstanding payment stablecoins” a payment coin issuer must “publicly, clearly, and conspicuously disclose in plain language,” information regarding purchasing fees [pg 8, Section 4(a)(A)(B)(i)(ii)].
-All issuers of payment stable coins will be subjected to regulation and supervision whether it be at the state level or federal. In addition, issuers are required to produce annual financial reports (GENIUS Act, pg 12) and must recertify annually.
-Upon the passing of this Act, and before 2026, the UC Attorney General along with the Secretary of the Treasury must submit a report on their efforts to coordinate with permitted stable coin issuers, as granted under this Act. This report is to be distributed to: The Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives. Parts of this report are permitted to be classified. By January 2026, the Secretary must submit to the aforementioned committees a report detailing legislative and regulatory (pg 25) proposals that will allow financial institutions to begin developing methods that will allow detection of illegal or fraudulent activity involving digital assets, among other things.
-Between August 18, 2025 and October 18, 2025, the Act requires the Secretary of Treasury to seek public comment on “innovative or novel” ways for financial institutions to detect unlawful activity involving digital assets, as well as the use of digital assets in regards to applications (“apps”), A.I., electronic identity and verification, and monitoring the use of blockchain technology. Once the window for public comment has closed, the Secretary is tasked with research with respect to all public comments. [pg 35]
HOLD THE LINE. 
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