Now Is the Time for States to Formulate a GENIUS Act–Compliant Charter The GENIUS Act of 2025 established the first comprehensive federal framework for U.S. payment stablecoins. It set strict requirements—1:1 reserve backing, monthly independent audits, prompt redemption rights, and bank-level supervision—while preserving the “dual banking system” that allows state innovation under federal guardrails. This presents a rare window of opportunity: states can act now to create their own qualified stablecoin issuer chartersthat fully comply with GENIUS, ensuring local control over a rapidly growing sector while protecting consumers. Why Act Now? Federal Clarity – The GENIUS Act removed ambiguity over stablecoin legality and set clear operational standards. States no longer need to guess where federal lines will be drawn. First-Mover Advantage – Just as early adopters of trust company or SPDI charters gained national visibility, the first states with a GENIUS-aligned charter will attract top fintechs, blockchain companies, and even public-private initiatives. Economic Development – A well-structured state charter invites high-value financial institutions to domicile locally, bringing jobs, tax revenue, and technological leadership. What a State Charter Should Include The Texas Digital Payment Reserve Bank (TDPRB) framework is a blueprint that other states can adapt: Charter Class for Stablecoin Issuers – A non-lending, fully reserved, state-supervised institution. Strict Reserve Requirements – 100% USD or high-quality liquid assets, segregated and unencumbered. Prompt Redemption – Mandated 1:1 redemption within 24–48 hours. Transparency – Monthly CPA-verified reserve attestations, annual audits, and public reporting. Consumer Protections – Clear disclosures, priority claims on reserves, and prohibition of misleading “insured” claims. The Risk of Waiting Without a state-level GENIUS-compliant charter, local oversight defaults to federal licensing or out-of-state regimes. That means fewer homegrown institutions, less influence over regulatory shaping, and missed opportunities for integrating stablecoins into state payments, benefits disbursements, and public-private innovation. Bottom Line: The GENIUS Act has set the table. States that move now to create compliant charters will control their own stablecoin destiny—balancing innovation, consumer protection, and economic growth. Those that delay will be left adopting someone else’s framework. #GENIUSACT #STABLECOINS #STABLECOINSOLUTIONS