---
title: "GENIUS Act — US payment stablecoin law — KYE Protocol™ coverage"
description: "GENIUS Act — US payment stablecoin law coverage by KYE Protocol™ — every requirement bijection-mapped to the KYE™ artefact that enforces it."
url: https://kyeprotocol.com/compliance/genius-act/
lang: en
source: "KYE Protocol"
---

> GENIUS Act — US payment stablecoin law coverage by KYE Protocol™ — every requirement bijection-mapped to the KYE™ artefact that enforces it.

GENIUS Act — US payment stablecoin law

# GENIUS Act — US payment stablecoin law — 83% of in-scope requirements covered.

10 requirements · 6 in scope (4 enforced · 2 designed) · 4 out-of-scope (outside KYE™’s authority layer). The 83% is weighted over the in-scope base.

**Source:** Guiding and Establishing National Innovation for U.S. Stablecoins Act of 2025 (GENIUS Act, Pub. L. 119-27) — the first enacted US federal law governing payment stablecoins and their issuers. Prudential-regulator implementing rulemakings are in process against a July 2026 deadline.

## By category

| Category | Reqs | Enforced | Designed | Advisory | Deferred | Coverage |
| --- | --- | --- | --- | --- | --- | --- |
| Issuer authorisation, prudential supervision & charter (federal/state) | 2 | 0 | 0 | 0 | 0 | **0%** |
| Marketing & holder-protection restrictions | 1 | 0 | 1 | 0 | 0 | **50%** |
| BSA / AML obligations of a permitted payment stablecoin issuer (issuer is a financial institution) | 3 | 3 | 0 | 0 | 0 | **100%** |
| Reserve backing, redemption at par & monthly disclosure | 4 | 1 | 1 | 0 | 0 | **75%** |

## Every requirement → the KYE™ artefact that enforces it

| ID | Title | Status | KYE™ enforcement |
| --- | --- | --- | --- |
| `genius.auth.permitted-issuer` | §3–§5 — Only a permitted payment stablecoin issuer (a federal-qualified or state-qualified issuer approved by the relevant prudential regulator) may issue a payment stablecoin in the US | out-of-scope | **constitution\_refs**: `constitution/26-COMMERCIAL.md` |
| `genius.supervision.examination` | §5 — Permitted issuers are subject to ongoing prudential supervision, examination and capital/liquidity standards set by the primary federal/state regulator | out-of-scope | **constitution\_refs**: `constitution/26-COMMERCIAL.md` |
| `genius.marketing.no-misleading` | §4 — Issuers do not market a payment stablecoin in a way that falsely suggests it is legal tender, government-issued, or federally insured | designed | **audit\_events**: `kye.purpose.admissibility.v1`, `kye.evidence.decision_map.v1` **engines**: `internal`, `internal` **rule\_packs**: `kye:rule-pack:financial-services` **constitution\_refs**: `constitution/12-PURPOSE-PERMISSION.md` |
| `genius.bsa.aml-program` | §4 — A permitted payment stablecoin issuer is a financial institution for Bank Secrecy Act purposes and maintains an effective AML / sanctions-compliance program | enforced | **audit\_events**: `kye.purpose.admissibility.v1`, `kye.evidence.decision_map.v1` **engines**: `internal`, `internal` **rule\_packs**: `kye:rule-pack:aml-financial-crimes` **constitution\_refs**: `constitution/12-PURPOSE-PERMISSION.md` |
| `genius.bsa.sanctions-screening` | §4 — Issuer has the technological capability to comply with lawful orders, including to seize, freeze, burn, or prevent transfer of stablecoins (sanctions / lawful-order capability) | enforced | **audit\_events**: `kye.purpose.admissibility.v1`, `kye.evidence.decision_map.v1` **engines**: `internal`, `internal` **rule\_packs**: `kye:rule-pack:aml-financial-crimes` **constitution\_refs**: `constitution/12-PURPOSE-PERMISSION.md` |
| `genius.bsa.recordkeeping` | §4 — Issuer maintains BSA-grade records of stablecoin transactions and produces them on lawful request | enforced | **audit\_events**: `kye.audit.event.v1`, `kye.evidence.pack.v1` **engines**: `internal`, `internal` **constitution\_refs**: `constitution/30-AUDIT-WORM-RETENTION.md` |
| `genius.reserve.1to1` | §4 — Permitted payment stablecoin issuers maintain reserves backing outstanding stablecoins on at least a 1:1 basis in identified high-quality liquid assets | out-of-scope | **constitution\_refs**: `constitution/26-COMMERCIAL.md` |
| `genius.redemption.par` | §4 — Issuers establish clear, public redemption policies and redeem outstanding payment stablecoins at par on demand | enforced | **audit\_events**: `kye.evidence.decision_map.v1`, `kye.purpose.admissibility.v1` **engines**: `internal`, `internal` **rule\_packs**: `kye:rule-pack:financial-services` **constitution\_refs**: `constitution/12-PURPOSE-PERMISSION.md` |
| `genius.disclosure.monthly` | §4 — Issuers publish the monthly composition of reserves, with an examination by a registered public accounting firm, and the CEO/CFO certify the disclosure | designed | **audit\_events**: `kye.compliance.attestation.v1`, `kye.evidence.pack.v1` **engines**: `internal`, `internal` **constitution\_refs**: `constitution/30-AUDIT-WORM-RETENTION.md`, `constitution/13-RESILIENCE-LOOP.md` |
| `genius.no-yield` | §4 — Permitted payment stablecoin issuers do not pay interest or yield to holders for merely holding the stablecoin | out-of-scope | **constitution\_refs**: `constitution/26-COMMERCIAL.md` |

Canonical KYE™ surfaces referenced on this page: [KYE Protocol™](https://kyeprotocol.com/).