Permitted Payment Stablecoin Issuer
A permitted payment stablecoin issuer is a U.S. entity legally authorized under the GENIUS Act framework to issue payment stablecoins.
✦ Key Insight
Issuer status determines which organizations can lawfully issue payment stablecoins in the United States and subjects them to reserve, redemption, risk-management, reporting, and other requirements.
✕ Common Misconceptions
“Permitted” does not mean risk-free or government-guaranteed. It describes regulatory status, not an assurance that the stablecoin cannot fail or lose value.
Detailed Explanation
In Practice
Dig Deeper
Stablecoin
A token designed to hold a steady value, usually one US dollar.
Custody
Custody is the safekeeping and control of digital assets or the private keys needed to access them.
Digital Asset Service Provider
Under the GENIUS Act, a digital asset service provider is generally a business that performs specified digital-asset exchange, transfer, custody, or related financial services for compensation or profit.
Lawful Order
Under the GENIUS Act, a lawful order is an enforceable federal legal requirement that can direct specified payment stablecoins to be seized, frozen, burned, or prevented from being transferred.