President Trump has breathed new life into the GENIUS Stablecoin Act, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, by securing the support of 11 out of 12 remaining Congress members needed to ensure its passage. This comes after the House failed to move forward with the legislation earlier today.
A total of 222 members voted against a procedural step essential for advancing the bill, while just 196 voted in favor. Trump’s efforts have breathed new energy into the stalled act, sparking renewed momentum in Congress.
Trump posted on Truth Social, revealing his success in rallying support among key holdouts. This development is seen as crucial for the act’s future, which seeks to regulate stablecoins, particularly those pegged to the US Dollar. If passed, the GENIUS Act mandates that such stablecoins be backed 1:1 by eligible reserves, primarily US Treasuries. It also requires monthly reserve audits and full disclosure of stablecoin issuers’ reserves.
Despite some resistance from Congress members like Marjorie Taylor Greene, who have voiced concerns about the act’s failure to protect self-custody and its lack of clear safeguards against Central Bank Digital Currencies (CBDCs), the legislation is expected to have a significant impact on the stablecoin industry. Supporters believe it will stimulate the growth of USD-pegged stablecoins, with projections indicating a rise from $240 billion to $750 billion by 2026.
The GENIUS Stablecoin Act could also lead to a shift in financial architecture, replacing fractional reserve banking with full-reserve backing, creating substantial demand for US Treasuries. One of the biggest beneficiaries of this legislation is expected to be Circle Internet Group (CRCL), which analysts predict will evolve from a crypto market money-rail to a broader money-rail for the internet.