What is GENIUS Act?
GENIUS Act
The GENIUS Act, formally the Guiding and Establishing National Innovation for U.S. Stablecoins Act, is a United States federal law establishing a regulatory framework for payment stablecoins. Discussion of the law has centered on its treatment of stablecoin yield and its influence on how other countries shape their own stablecoin rules.
How it developed
- May 2026 - Ryan Sean Adams said the law’s language holds that stablecoin yield cannot be paid solely in connection with holding, meaning idle balances cannot earn yield, and that if it looks like a bank deposit, yield cannot be paid.
- Aug 2026 - Jim said the GENIUS Act and the CLARITY Act are the wrong things to do.
- Sep 2026 - Jeremy Allaire said other countries are waiting for U.S. laws to be finalized so they can finalize their own stablecoin laws.
In the evidence
Every line below is attributed to a named speaker.
Other countries are deliberately waiting for the US GENIUS Act to be finalized before writing their own stablecoin laws, making US legislation the de facto global template.
“The other countries are waiting for like the US laws to be final so they can finalize how they will do stable coin laws in their country.”Jeremy Allaire · 16 Sep 2026
Ryan Sean Adams explains the GENIUS Act stablecoin yield prohibition: if a token pays yield solely for holding idle balances, it is treated as functionally equivalent to a bank deposit and yield is banned.
“He said stablecoin yield cannot be paid solely in connection with holding is the words. So, idle balances or in a manner economically or functionally equivalent that wording is like, 'If it looks like a bank deposit, you can't pay yield.'”Ryan Sean Adams · 8 May 2026
Ryan Sean Adams distilling the GENIUS Act stablecoin yield rule.
“If it looks like a bank deposit, you can't pay yield.”Ryan Sean Adams · 8 May 2026
Jim argues that crypto-focused regulatory clarity bills such as the Genius Act and Clarity Act are counterproductive because seeking Washington's permission undermines crypto's foundational premise.
“I look at things like the Genius Act and I look at things like the Clarity Act and I think that those are the wrong things to do.”Jim · 17 Aug 2026