Trump Revives GENIUS Stablecoin Act with Support from 11 Congress Holdouts

This article does not constitute investment advice. The author holds no shares in any of the stocks mentioned.

Trump Revives the GENIUS Stablecoin Legislation

Amidst considerable political tension, President Trump’s legislative initiative focused on stablecoins, known as the GENIUS Act (Guiding and Establishing National Innovation for U. S.Stablecoins Act), has recently gained renewed momentum. Trump’s influential post on Truth Social has claimed an impressive level of bipartisan support among Congress members—11 out of the 12 additional votes needed to advance the legislation.

Donald J. Trump Truth Social 07.15.25 08:43 PM EST pic.twitter.com/HVT4idAFUN

— Fan Donald J. Trump Posts From Truth Social (@TrumpDailyPosts) July 16, 2025

This surge in backing comes on the heels of a setback earlier today, when the House of Representatives did not move forward with the GENIUS Act. A total of 222 members voted against a procedural step necessary for formal discussions, while only 196 supported it.

This week, the House is voting on the GENIUS Act which lays the groundwork for a layered Central Bank Digital Currency (CBDC) where Americans interact with stablecoins but behind the scenes there are the functional surveillance capabilities of a CBDC. The bill as written does… pic.twitter.com/GmdgX84SIE

— Rep. Marjorie Taylor Greene🇺🇸 (@RepMTG) July 15, 2025

Concerns Surrounding the GENIUS Act

Some House members, including Marjorie Taylor Greene, have voiced concerns regarding the GENIUS Act. They argue that the legislation contains critical gaps, specifically its lack of protections for self-custody of crypto assets and its failure to explicitly prevent the adoption of a Central Bank Digital Currency (CBDC).

Overview of the GENIUS Stablecoin Act

The GENIUS Act aims to establish a robust regulatory framework for stablecoins. Key features of the legislation include:

Stablecoins pegged to the US Dollar must be fully backed by eligible reserves, specifically US Treasuries, on a 1:1 basis.
Issuers need to undergo regular reserve audits and provide monthly disclosures.
Eligible banks and entities will be permitted to issue stablecoins with fewer restrictions compared to existing securities laws.
All issuers are required to comply with anti-money laundering laws, including Know Your Customer (KYC) regulations.

This legislative movement is anticipated to catalyze the expansion of USD-pegged stablecoins. The total addressable market (TAM) for stablecoins is projected to escalate from an estimated $240 billion currently to approximately $750 billion by the end of 2026.

Market Implications and Industry Shifts

The enactment of the GENIUS Act could initiate a significant transformation in the financial landscape. Shifting from the existing fractional reserve banking system to a model based on full-reserve backing could stimulate demand for US Treasuries markedly.

Moreover, the Circle Internet Group (CRCL) stands to gain notably from the approval of the GENIUS Act. Analysts at Bernstein SocGen Group suggest that the company is positioned to transition from serving as the “money-rail of crypto markets”to becoming integral to the broader internet economy.

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