The Setting
The story will take place in the small city of Midport, located near the coast of Maine. The year, as previously stated, is 2315. While technology has stagnated slightly since the Mutagen, things like ubiquitous computing and artificial intelligences are present in the setting.
Setting: The Agency
One of the most important aspects of the setting is how the American government changed following the Mutagen. While the leaders of the ISA claim that the government has not changed much since before the Mutagen, this is obviously false. The Imperial States of America are led by a three branch government. The Legislative branch makes the laws, the Judicial branch interprets the laws, and the Executive branch enforces the laws. The difference from the before-Mutagen (BM) times is that the Executive branch now holds nearly all the power. The Agent-President has the authority to remove Judges and Congressmen without any checks on his power. In letter, the IL needs permission from the Legislative branch before he can start a war, but any savvy IL quickly replaces any members of the Legislative branch who disagree with his ways and holds the threat of dismissal over the other members' heads. While the Executive branch can declare Martial law and is entirely in control of the military, their true power within the ISA is a group known simply as "The Agency." While nothing concrete is known about the group, they apparently control all three branches of government from behind the scenes. It may in fact be more accurate to say (if you wanted to disappear) that the Agency is the government of the ISA.
Within the ISA, Gifted are treated as second class citizens. They have no right to vote. They are not represented in the Government. They cannot hold an elected office. The only Gifted who garner any respect from the Agency are those who are Agents. A Gifted is considered to be a weapon by law. If a Gifted ever harms another person, even by accident or in self defense, they are considered criminal and brought to justice. Depending on the Agent taking the case, Justice can mean anything from imprisonment to extermination.
Most of the Gifted being downtrodden, though, is backstory fluff. Within the game, most characters are going to be labeled as criminals anyway. The fact of the matter is, the Agency considers any Gifted not under their thumb to be illegal. Any Gifted who isn't registered is also a criminal. Probably the only way to be Gifted and not commit a crime is to sit in your cellar all day, without touching anything or even thinking about anything, except even then you'd probably be guilty of loitering.
The Setting: The Rest of the World
Most of the rest of the world is in similar straits as the ISA. China, for example, had most of their government offices overtly taken over by the military. Most European countries shifted toward increased militarization, and most countries are currently embroiled in an uneasy peace. Generally, Gifted are treated with suspicion and distrust, but most European countries accept them uneasily.
Over the past decade or so, the ISA has been involved in military operations in what was once the Iraq, Afghanistan, and Iran area, now known as the United Arabian Empire. The leaders of the ISA have spread propaganda to the effect that the UAE is responsible for a number of terrorist operations within the ISA and other countries. It is unknown whether or not any of it is true, and most of the world isn't looking too hard to find out.