Is the Genius Act Cancelled?

The Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) has been a hot topic in 2025, promising to bring much-needed clarity to the regulation of stablecoins, cryptocurrencies pegged to assets like the U.S. dollar. With the crypto industry buzzing and President Donald Trump pushing hard for its passage, many are wondering: Is the GENIUS Act cancelled, or is it still on track to reshape the digital asset landscape? 

Let’s break down the latest developments, legislative hurdles, and what they mean for stablecoins like USDC.

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What Is the GENIUS Act?

The GENIUS Act aims to create a federal framework for regulating stablecoins, which are designed to maintain a stable value, often tied to the U.S. dollar. Unlike volatile cryptocurrencies like Bitcoin, stablecoins like USDC and USDT are backed 1:1 by reserves such as cash or Treasury bills, making them ideal for payments and trading. 

The Act sets rules for issuers, requiring full reserve backing, regular audits, and compliance with anti-money-laundering laws to protect consumers and ensure financial stability.

Why It Matters

Stablecoins are a big deal, handling over $700 billion in monthly transactions globally, with 90% being dollar-denominated. The GENIUS Act could legitimize stablecoins, boost competition, and cement the U.S. dollar’s dominance in digital finance. It’s also seen as a way to keep the U.S. competitive against regions like the EU, which already has its Markets in Crypto-Assets (MiCA) law.

Read Also: GENIUS Act to be Voted on: What Will be the Result?

The Legislative Journey So Far

In June 2025, the Senate passed the GENIUS Act with a strong bipartisan vote of 68-30, a major win for the crypto industry, which spent over $119 million backing pro-crypto candidates in 2024. 

The bill now sits with the House of Representatives, where it’s part of a broader “Crypto Week” agenda, alongside the Digital Asset Market Clarity Act. House leaders, backed by Trump, are pushing for a vote to send the bill to the president’s desk before the August recess.

Trump’s Push and Congressional Talks

President Trump has been a vocal champion, meeting with Congress in the Oval Office to rally support. He called the GENIUS Act a way to put the U.S. “lightyears ahead” in digital assets, urging Republicans to vote yes. 

House Speaker Mike Johnson has echoed this, pushing for a swift vote. However, the House has its own version, the STABLE Act, which differs in details like regulatory oversight, complicating efforts to align both chambers.

Why the “Cancelled” Rumors?

The GENIUS Act faces setbacks as critics raise conflict-of-interest concerns over Trump’s ties to USD1 issuer World Liberty Financial. Senator Warren cites weak anti-corruption safeguards, while Rep. Greene opposes the bill for not banning CBDCs. Internal GOP splits and prior failed votes fuel doubts about its future.

Market Jitters

Investor confidence has taken a hit, with stocks like Circle (down 7%), Coinbase (down 4%), and MARA Holdings (down 2%) reflecting uncertainty. Analysts suggest tighter regulations could force stablecoin issuers like USDC to adjust strategies, potentially impacting market positions.

The lack of clarity on whether the House will pass the Senate’s version or push its own STABLE Act adds to the unease.

Read Also: Crypto Bills Stalled: GENIUS Act Vote Fails, What’s Next?

Is the GENIUS Act Really Cancelled?

As of July 16, 2025, the GENIUS Act is not cancelled. The House is set to vote during its “Crypto Week,” and Trump’s influence, combined with bipartisan Senate support, suggests it’s still on track. 

However, reconciling differences between the GENIUS and STABLE Acts could delay progress. The House’s focus on the broader Clarity Act, which regulates the wider crypto market, might also slow things down.

Challenges Ahead

Critics like Warren argue the bill needs stronger consumer protections and restrictions on tech giants like Meta or Amazon issuing stablecoins. Past stablecoin failures, like TerraUSD’s $40 billion collapse in 2022, highlight the risks of weak regulation. 

Democrats also want tougher financial controls to prevent fraud and money laundering, while some Republicans demand clearer anti-CBDC language. These issues could stall the bill if not addressed.

Impact on Stablecoins and the Market

USDC, with a $62.47 billion market cap and $18.58 billion in daily trading volume as of July 16, 2025, remains stable at $1.00. However, the GENIUS Act’s regulations could increase compliance costs for issuers like Circle, potentially reshaping the market. 

More competition is expected as banks and firms enter the space, challenging the USDC-USDT duopoly.

Broader Implications

The Act could mainstream stablecoins, making them a go-to for payments and cross-border transactions, especially in emerging markets. It may also drive demand for U.S. Treasuries, as issuers need reserves to back stablecoins. 

However, without robust safeguards, critics warn of systemic risks, citing past de-pegging events like USDC’s drop to 87 cents in 2023.

Read Also: GENIUS Act to Integrate Stablecoins into US Financial System

Conclusion

The GENIUS Act isn’t dead but faces major House hurdles. Despite Trump’s support and Senate backing, concerns over CBDCs, conflicts of interest, and weak protections may stall it. Its fate will shape stablecoin regulation and market clarity. For now, the path to law remains uncertain.

FAQ

Is the GENIUS Act cancelled or still active?

It's not cancelled. As of July 16, 2025, it’s still alive in the House and awaiting a vote during “Crypto Week.”

What does the GENIUS Act require from stablecoin issuers?

Full reserve backing, regular audits, and AML compliance to ensure consumer safety and market stability.

Why is there pushback on the GENIUS Act in the House?

Conflicts over CBDC language, weak safeguards, and competing bills like the STABLE Act are slowing progress.

How could the GENIUS Act impact USDC and similar stablecoins?

It may raise compliance costs, open doors for bank-backed coins, and shake up the USDC-USDT duopoly.

What risks do critics highlight about the GENIUS Act?

Weak consumer protections, potential tech giant overreach, and fears of another Terra-style collapse.

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