---
title: "GENIUS Act vs CLARITY Act: what each one covers"
url: "https://www.unknowngravity.com/en/articulos/genius-act-vs-clarity-act"
site: Unknown Gravity
published: "2026-10-31T23:24:22+00:00"
modified: "2026-10-31T23:24:23+00:00"
language: en
description: "The GENIUS Act governs payment stablecoins and is law; the CLARITY Act would split crypto oversight between the SEC and CFTC but stalled in the Senate."
section: "Home > Blog > GENIUS Act vs CLARITY Act: what each one covers"
---

# GENIUS Act vs CLARITY Act: what each one covers

**The GENIUS Act is the U.S. law that governs payment stablecoins: who may issue them, what reserves back them and who supervises the issuer. It has been law since July 18, 2025 (Public Law 119-27) and, according to the Treasury, takes effect on January 18, 2027. The CLARITY Act (H.R. 3633) would split oversight of the rest of the crypto market between the SEC and the CFTC, but it is not law: on September 15, 2026 the Senate failed to invoke cloture (49 yeas, 50 nays), and as of October 31, 2026 it has not voted on it again.**

The two are often mentioned together because they are the two halves of the crypto framework the U.S. is building: one for payment stablecoins, the other for tokens and the intermediaries that trade them. In the European Union, MiCA covers both areas in a single regulation, although it excludes crypto-assets that qualify as financial instruments (Art. 2(4)), which remain under MiFID II.

## Status as of October 31, 2026

- **GENIUS Act: law, not yet effective.** It was signed on July 18, 2025. It takes effect on the earlier of two dates: 18 months after enactment, or 120 days after the primary federal payment stablecoin regulators issue any final regulations implementing it (Sec. 20). The Treasury and the OCC put that date at January 18, 2027. On October 23, 2026 the OCC published its final rule, the first from one of those regulators, effective that same January 18; since 120 days from that rule would end later, the date does not change. For the Federal Reserve, the FDIC and the NCUA, the Federal Register shows only proposed rules.
- **CLARITY Act: a bill stalled in the Senate.** The House of Representatives passed it on July 17, 2025, by 294 to 134. On September 15, 2026 the Senate fell short of the three-fifths needed to invoke cloture on the motion to proceed to the bill (49-50), and Senator Tillis entered a motion to reconsider that vote. Since October 1, the Senate has held only pro forma sessions. Its calendar of October 29 keeps the bill under General Orders (No. 423), with no date set.

Last verified action: October 23, 2026 for the GENIUS Act (OCC final rule) and September 15, 2026 for the CLARITY Act (congress.gov record, last updated on September 17).

## What the GENIUS Act is

The “Guiding and Establishing National Innovation for U.S. Stablecoins Act” (S. 1582) defines a payment stablecoin as a digital asset that is used, or designed to be used, as a means of payment or settlement, whose issuer is obligated to redeem it for a fixed amount of monetary value and represents that it will maintain a stable value (Sec. 2). A national currency, a bank deposit (even one recorded on a distributed ledger) and a security are not payment stablecoins.

- **Who may issue.** Only a “permitted payment stablecoin issuer” may issue payment stablecoins in the U.S. (Sec. 3(a)). It must be formed in the U.S. and be an approved subsidiary of an insured depository institution, a federal qualified issuer or a state qualified issuer (Sec. 2(23)).
- **Reserves.** At least 1 to 1, in cash, demand deposits, Treasury bills with 93 days or less to maturity and other assets the law lists (Sec. 4(a)(1)(A)).
- **Neither a security nor a commodity.** A payment stablecoin issued by a permitted issuer is excluded from the definition of “security” in the securities laws and of “commodity” in the Commodity Exchange Act (Sec. 17).
- **Intermediaries.** Starting July 18, 2028, a business that exchanges, transfers or holds digital assets for customers may not offer or sell to a person in the U.S. a payment stablecoin that does not come from a permitted issuer, except under Treasury safe harbors or the foreign issuer exception (Secs. 3(b)(1), 3(c) and 18).
- **Reach outside the U.S.** These prohibitions apply extraterritorially when a payment stablecoin is offered or sold to a person located in the U.S. (Sec. 3(e)).

What it requires from issuers, step by step, is covered in our [GENIUS Act guide for stablecoin issuers](/en/articulos/genius-act-stablecoin-issuers). The short definition is in the [GENIUS Act](/en/glosario/genius-act) glossary entry.

## What the CLARITY Act is

The “Digital Asset Market Clarity Act” (H.R. 3633) is a bill on the structure of the crypto asset market: which token is a security and which is a “digital commodity,” which regulator oversees it and which intermediaries must register. The House-passed text proposes:

- **CFTC:** exclusive jurisdiction over transactions in digital commodities, including spot markets, and new registrations for digital commodity exchanges, brokers and dealers (Secs. 401, 404 and 406).
- **SEC:** keeps offers of investment contracts involving those assets, with an exemption allowing the issuer to sell up to $50 million in 12 months if its blockchain is or intends to become a “mature blockchain system” within 4 years (Sec. 202).
- **Outside the digital commodity definition:** securities that give an interest in an issuer’s revenues, profits or assets, bank deposits and payment stablecoins permitted under the GENIUS Act (Sec. 103). A tokenized share or bond would fall outside it.

On May 14, 2026 the Senate Banking Committee approved a very different substitute text. It regulates “ancillary assets” under the Securities Act, treats a tokenized security as the security it represents (Sec. 505) and would take effect 360 days after enactment, or later where a provision requires rulemaking (Sec. 906). If the Senate passes a text that differs from the House’s, the House will have to agree to it or work out a common one. More in the [CLARITY Act](/en/glosario/clarity-act) glossary entry.

## Comparison table: GENIUS Act vs CLARITY Act

|  | GENIUS Act | CLARITY Act |
| --- | --- | --- |
| **What it is** | Federal law: Public Law 119-27 (S. 1582) | Bill: H.R. 3633 |
| **Subject** | Payment stablecoins: issuance, reserves, redemption, supervision and foreign issuers | Market structure: the line between security and digital commodity, the SEC/CFTC split and intermediary registration |
| **Status as of 10/31/2026** | Law since 7/18/2025; expected to take effect on 1/18/2027 | Passed by the House (7/17/2025); cloture failed in the Senate (9/15/2026, 49-50); no new vote scheduled |
| **Supervisor** | OCC (federal qualified issuers and registration of foreign issuers); the parent bank’s federal regulator (subsidiaries of depository institutions); NCUA (credit unions); state regulators (issuers with up to $10 billion outstanding under a “substantially similar” regime); Treasury (Sec. 3 rules and comparability determinations) | House text: CFTC (digital commodity markets and intermediaries) and SEC (investment contract offerings) |
| **Who it binds** | Payment stablecoin issuers in the U.S.; intermediaries that offer them to people in the U.S.; foreign issuers seeking access | No one today. Under the House text: digital commodity exchanges, brokers and dealers, and issuers selling those tokens |
| **Key dates** | 7/18/2025, signed; 10/23/2026, OCC final rule; 1/18/2027, expected effective date; 7/18/2028, prohibition for intermediaries | 5/29/2025, introduced; 7/17/2025, passed by the House; 5/14/2026, Banking Committee substitute; 9/15/2026, failed cloture |
| **How they connect** | A permitted payment stablecoin is neither a security nor a commodity (Sec. 17) | The House text leaves it out of the digital commodity definition (Sec. 103) |

## What it means for a European or Latin American company doing business with the U.S.

### If you want to issue or distribute a payment stablecoin in the U.S.

A permitted issuer must be formed in the U.S. A non-U.S. issuer has two routes: set up a U.S. entity that obtains approval, or use the foreign issuer exception in Sec. 18, which requires four conditions at once:

1. being supervised in a country whose regime the Treasury determines to be comparable to the GENIUS Act;
2. being registered with the OCC;
3. holding reserves in a U.S. financial institution sufficient to meet the liquidity demands of its U.S. customers, unless a reciprocal arrangement provides otherwise;
4. its country not being subject to comprehensive U.S. economic sanctions or designated by the Treasury as a jurisdiction of primary money laundering concern.

The Treasury must decide within 210 days of receiving a substantially complete request, and must publish its justification in the Federal Register before a determination takes effect. As of October 31, 2026, the Federal Register contains none. The OCC final rule already sets the registration procedure for foreign issuers (§ 15.32) and provides for a list of approved registrations on occ.gov.

For a European issuer, this means a MiCA authorization is not enough on its own: the exception also requires, among other conditions, the Treasury determination and OCC registration. In the EU, the issuer of an e-money token (EMT), MiCA’s category for a stablecoin pegged to one official currency, must be authorized as a credit institution or an electronic money institution; other persons may offer it to the public only with the issuer’s written consent (Art. 48). We explain it in [euro stablecoins and MiCA](/en/articulos/euro-stablecoin-mica). For a Latin American issuer, the starting point is the home-country framework: see [stablecoins in Latin America, country by country](/en/articulos/stablecoins-in-latin-america).

### If you only pay U.S. companies, or get paid by them, in stablecoins

Under the text of Sec. 3, the prohibitions target issuers (3(a)) and intermediaries (3(b)), not a business that only pays or gets paid. It still affects you in two ways:

- Starting July 18, 2028, intermediaries may not offer or sell to people in the U.S. stablecoins from non-permitted issuers, except those of foreign issuers that qualify under Sec. 18. It is worth checking which issuer stands behind the stablecoin you use with each counterparty.
- A stablecoin from a non-permitted issuer will not be treated as cash or a cash equivalent for accounting purposes, will not be eligible as cash or cash-equivalent margin and collateral for broker-dealers, futures commission merchants and other intermediaries, and will not be accepted as a settlement asset for wholesale payments between banking organizations (Sec. 3(g)).

On the European side of the transaction, MiCA still applies. If your company provides crypto-asset services to third parties in the EU, it must be authorized as a crypto-asset service provider (CASP) or be one of the financial entities allowed to provide them (Art. 59). See [MiCA license in Spain (CASP)](/en/articulos/casp-license-spain-mica) and [MiCA license by country](/en/articulos/mica-license-by-country).

### If you tokenize assets or launch a token aimed at the U.S.

Here the CLARITY Act is the one that matters, and it is not law. Today the Securities Act, the Exchange Act and SEC rules apply. In an interpretation published on March 23, 2026 together with the CFTC (Release 33-11412), the SEC holds that the token format does not change the nature of a security. How an offering is structured today: [asset tokenization in the United States](/en/articulos/asset-tokenization-in-the-united-states). In the EU, the equivalent line is the one between MiCA and MiFID II: [MiCA vs MiFID II](/en/articulos/mica-vs-mifid-ii).

### GENIUS, CLARITY and MiCA side by side

|  | United States | EU (MiCA) |
| --- | --- | --- |
| **Stablecoins** | GENIUS Act: law; expected to take effect on 1/18/2027 | Titles III (asset-referenced tokens) and IV (e-money tokens): applicable since 6/30/2024 |
| **Market and intermediaries** | CLARITY Act: bill | Title V (crypto-asset service providers): applicable since 12/30/2024 |

A summary of the EU regulation is in the [MiCA](/en/glosario/mica-reglamento-criptoactivos) glossary entry.

## What to watch

- **The remaining GENIUS Act rules.** The Federal Reserve’s proposal is open for comment until November 30, 2026. The Treasury’s proposal on issuance, offer and sale (Sec. 3) closed for comment on October 19.
- **January 18, 2027.** The expected effective date. According to the Treasury, from then on it will generally be unlawful to issue payment stablecoins in the U.S. without being licensed or approved as a permitted issuer.
- **Sec. 18 comparability determinations.** Treasury determinations in the Federal Register and the list of registered foreign issuers the OCC will publish.
- **July 18, 2028.** The prohibition for intermediaries begins.
- **The CLARITY Act in the Senate.** Whether the motion to reconsider or a new cloture vote succeeds; the next scheduled session is November 2, 2026. If the Senate passes a different text, agreement with the House and action by the President would still be needed.
- **The CFTC acting on its own.** On October 13, 2026 it published an advance notice of proposed rulemaking (ANPRM) to develop rules for crypto asset transactions and markets under the existing Commodity Exchange Act (Sec. 2(c)(2)(D)). Comments are due by December 14, 2026.

## How Unknown Gravity can help

At Unknown Gravity we build the technology: stablecoin payment, collection and treasury integrations, smart contracts, connections to licensed custodians and liquidity providers, and the controls the rules call for, such as sanctions screening and transaction records. We work alongside the client’s legal advisers and the licensed entities it works with. We are not a regulated entity: we do not issue stablecoins, hold client funds or grant licenses.

- If you need to decide, with your legal advisers, what architecture fits the rules that apply to you: [blockchain consulting](/en/servicios/consultoria-blockchain).
- If you want to pay, get paid or move treasury in stablecoins: [stablecoin payments](/en/servicios/stablecoin-payments).

## Frequently asked questions

### What is the difference between the GENIUS Act and the CLARITY Act?

The GENIUS Act covers only payment stablecoins and has been law since July 18, 2025. The CLARITY Act would regulate the rest of the crypto market (the SEC/CFTC split and intermediary registration) and is still a bill. They fit together: the House text leaves permitted payment stablecoins out of the CLARITY Act.

### Is the CLARITY Act law yet?

No. The House passed it on July 17, 2025, but on September 15, 2026 the Senate fell short of the three-fifths needed for cloture (49-50) and, as of October 31, 2026, has not voted on it again or set a date. To become law it would have to clear one or more cloture votes, pass the Senate, be reconciled with the House if the text changes, and then go to the President, usually for signature (Article I, Section 7 of the Constitution).

### When does the GENIUS Act take effect?

On the earlier of two dates: 18 months after it was signed, or 120 days after the federal regulators issue final regulations. The Treasury and the OCC put that date at January 18, 2027. The prohibition for intermediaries comes later, on July 18, 2028.

### Can a European or Latin American company issue a stablecoin for the U.S. market?

Yes, in two ways: through a U.S.-formed entity approved as a permitted issuer, or as a foreign issuer, if the Treasury finds its home country’s regime comparable, it registers with the OCC and it meets the other conditions of Sec. 18. As of October 31, 2026, no comparability determination has been published.

### Is a payment stablecoin a security in the U.S.?

Not if a permitted issuer issues it: the GENIUS Act removes it from the definition of “security” in the securities laws and of “commodity” in the Commodity Exchange Act (Sec. 17). The exclusion covers only stablecoins from permitted issuers.

## Sources

- [Public Law 119-27, GENIUS Act (govinfo)](https://www.govinfo.gov/content/pkg/PLAW-119publ27/html/PLAW-119publ27.htm)
- [S. 1582, bill record (congress.gov)](https://www.congress.gov/bill/119th-congress/senate-bill/1582)
- [OCC final rule, 10/23/2026 (91 FR 67000)](https://www.federalregister.gov/documents/2026/10/23/2026-21706/implementing-the-guiding-and-establishing-national-innovation-for-us-stablecoins-act-for-the)
- [Treasury interim final rule, 9/30/2026 (91 FR 61688)](https://www.federalregister.gov/documents/2026/09/30/2026-19966/forms-and-procedures-for-review-of-state-certifications-by-the-stablecoin-certification-review)
- [Treasury proposed rule on Sec. 3, 8/18/2026 (91 FR 53368)](https://www.federalregister.gov/documents/2026/08/18/2026-16796/genius-act-regulations-on-payment-stablecoin-issuance-offer-and-sale)
- [Federal Reserve proposed rule, 9/29/2026 (91 FR 61580)](https://www.federalregister.gov/documents/2026/09/29/2026-19860/implementing-the-federal-reserve-boards-responsibilities-under-the-genius-act)
- [H.R. 3633, all actions (congress.gov)](https://www.congress.gov/bill/119th-congress/house-bill/3633/all-actions)
- [Congressional Record, September 15, 2026 (Daily Digest)](https://www.govinfo.gov/content/pkg/CREC-2026-09-15/html/CREC-2026-09-15-pt1-PgD893.htm)
- [Senate Calendar of Business, October 29, 2026](https://www.govinfo.gov/content/pkg/CCAL-119scal-2026-10-29/pdf/CCAL-119scal-2026-10-29.pdf)
- [H.R. 3633, House-passed text](https://www.govinfo.gov/content/pkg/BILLS-119hr3633eh/html/BILLS-119hr3633eh.htm)
- [H.R. 3633, Senate Banking Committee text](https://www.govinfo.gov/content/pkg/BILLS-119hr3633rs/html/BILLS-119hr3633rs.htm)
- [CFTC ANPRM, 10/13/2026 (91 FR 64811)](https://www.federalregister.gov/documents/2026/10/13/2026-20888/regulation-crypto-asset-transactions-and-regulation-crypto-asset-markets)
- [SEC and CFTC, Release 33-11412 (91 FR 13714)](https://www.federalregister.gov/documents/2026/03/23/2026-05635/application-of-the-federal-securities-laws-to-certain-types-of-crypto-assets-and-certain)
- [Regulation (EU) 2023/1114, MiCA (EUR-Lex)](https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32023R1114)

*Status verified as of October 31, 2026.* This article is for information only and is not legal advice. What applies to you depends on your business, where your customers are and the rules still pending; always check the official texts on [congress.gov](https://www.congress.gov/) and, for MiCA, on [EUR-Lex](https://eur-lex.europa.eu/).