Largely relegated to the dreaded bipartisan purgatory earlier today, Trump's signature stablecoin-focused legislation has just received a fresh dose of the proverbial adrenaline, courtesy of the President's concerted efforts.
To wit, President Trump has just posted on Truth Social that he has won the support of 11 out of the 12 additional Congress members required to ensure the passage of the GENIUS stablecoin act, more formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act.
Earlier today, the House failed to move forward with the legislation when 222 members voted against a procedural step required to initiate formal deliberations, with just 196 members voting in its favor.
House members such as Marjorie Taylor have raised concerns regarding the supposed lacunae within the GENIUS stablecoin act, including its failure to safeguard self-custody of crypto assets, as well as the lack of a formal preclusion of a Central Bank Digital Currency (CBDC).
For the benefit of those who might not be aware, the GENIUS stablecoin act creates a comprehensive framework for regulating stablecoins. Among other things, it mandates that stablecoins pegged to the US Dollar have to be backed by eligible reserves - consisting of US Treasuries - on a 1:1 basis. The legislation also requires regular reserve audits and monthly disclosures.
Under the proposed framework, banks and other eligible entities can issue stablecoins without the onerous requirements entailed under securities laws. However, all issuers will have to comply with anti-money laundering laws and regulations, including rules pertaining to the so-called Know Your Customer (KYC) framework.
The GENIUS stablecoin act is expected to provide a major boost to the USD-pegged stablecoins, with the sector's TAM expected to grow from around $240 billion right now to $750 billion by the end of 2026.
What's more, stablecoins are poised to reshape the current financial architecture, with a full-fledged transition away from the current fractional reserve banking to one based on a full-reserve backing in the cards, creating a huge demand for the US Treasuries in the process.
Of course, the biggest winner from the passage of the GENIUS stablecoin act is likely to be the Circle Internet Group (CRCL), which as we noted recently, is now poised to evolve "from money-rail of crypto markets to money-rail of the internet," according to Bernstein SocGen Group analyst Gautam Chhugani.
About the author: Writing is my one incontrovertible passion. Over the past six years, he has authored over 2,200 distinct articles on financial and tech-related topics, spanning nearly 1 million words. And he has been a member of Wcctech mobile team since 2025. As an alumnus of the University of Toronto, Rotman Commerce Program, I bring nuance, in-depth knowledge, and a unique perspective to every topic that I cover. When I'm not writing, I'm traveling the world, exploring hidden confectionaries and restaurants as an aspiring food connoisseur.
Follow Wccftech on Google to get more of our news coverage in your feeds.
