Reserve composition, redemption policy, and monthly disclosure

Statutory text, verbatim

Citation

GENIUS Act § 4(a)(1)

Document

S. 1582 ENROLLED (119th Congress)

Source URL

https://www.congress.gov/119/bills/s1582/BILLS-119s1582enr.htm

Retrieved

2026-07-25

Quoted exactly as it appears in the enrolled bill, including its line breaks and indentation. ReserveBeat does not re-wrap, edit, or abridge statutory text.

(1) In general.--A permitted payment stablecoin issuer shall--
            (A) maintain identifiable reserves backing the outstanding 
        payment stablecoins of the permitted payment stablecoin issuer 
        on an at least 1 to 1 basis, with reserves comprising--
                (i) United States coins and currency (including Federal 
            Reserve notes) or money standing to the credit of an 
            account with a Federal Reserve Bank;
                (ii) funds held as demand deposits (or other deposits 
            that may be withdrawn upon request at any time) or insured 
            shares at an insured depository institution (including any 
            foreign branches or agents, including correspondent banks, 
            of an insured depository institution), subject to 
            limitations established by the Corporation and the National 
            Credit Union Administration, as applicable, to address 
            safety and soundness risks of such insured depository 
            institution;
                (iii) Treasury bills, notes, or bonds--

                    (I) with a remaining maturity of 93 days or less; 
                or
                    (II) issued with a maturity of 93 days or less;

                (iv) money received under repurchase agreements, with 
            the permitted payment stablecoin issuer acting as a seller 
            of securities and with an overnight maturity, that are 
            backed by Treasury bills with a maturity of 93 days or 
            less;
                (v) reverse repurchase agreements, with the permitted 
            payment stablecoin issuer acting as a purchaser of 
            securities and with an overnight maturity, that are 
            collateralized by Treasury notes, bills, or bonds on an 
            overnight basis, subject to overcollateralization in line 
            with standard market terms, that are--

                    (I) tri-party;
                    (II) centrally cleared through a clearing agency 
                registered with the Securities and Exchange Commission; 
                or
                    (III) bilateral with a counterparty that the issuer 
                has determined to be adequately creditworthy even in 
                the event of severe market stress;

                (vi) securities issued by an investment company 
            registered under section 8(a) of the Investment Company Act 
            of 1940 (15 U.S.C. 80a-8(a)), or other registered 
            Government money market fund, and that are invested solely 
            in underlying assets described in clauses (i) through (v);
                (vii) any other similarly liquid Federal Government-
            issued asset approved by the primary Federal payment 
            stablecoin regulator, in consultation with the State 
            payment stablecoin regulator, if applicable, of the 
            permitted payment stablecoin issuer; or
                (viii) any reserve described in clause (i) through 
            (iii) or clause (vi) through (vii) in tokenized form, 
            provided that such reserves comply with all applicable laws 
            and regulations;
            (B) publicly disclose the issuer's redemption policy, which 
        shall--
                (i) establish clear and conspicuous procedures for 
            timely redemption of outstanding payment stablecoins, 
            provided that any discretionary limitations on timely 
            redemptions can only be imposed by a State qualified 
            payment stablecoin regulator, the Corporation, the 
            Comptroller, or the Board, consistent with section 7; and
                (ii) publicly, clearly, and conspicuously disclose in 
            plain language all fees associated with purchasing or 
            redeeming the payment stablecoins, provided that such fees 
            can only be changed upon not less than 7 days' prior notice 
            to consumers; and
            (C) publish the monthly composition of the issuer's 
        reserves on the website of the issuer, containing--
                (i) the total number of outstanding payment stablecoins 
            issued by the issuer; and
                (ii) the amount and composition of the reserves 
            described in subparagraph (A), including the average tenor 
            and geographic location of custody of each category of 
            reserve instruments.

What ReserveBeat does with this

ReserveBeat's coverage board tracks the two figures this paragraph makes public: the total number of outstanding tokens an issuer reports, and the amount and composition of the reserve categories it lists. Both are carried verbatim from the issuer's own disclosure into the board and into the monthly evidence bundle, with the as-of date the issuer stated. Where a category cannot be derived from the source document, the cell is marked NOT_HELD rather than estimated.

Terms used in this provision

• Reserve requirements
• Permitted reserve assets
• Monthly reserve disclosure
• Redemption policy
• Reserve composition

Definitions live in the learn section. ReserveBeat defines terms in one place and links to it.

How ReserveBeat reconciles what issuers publish→

How every published figure is derived→