Stablecoin News – On July 12, 2025, the U.S. House of Representatives delayed its vote on the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) to late July, extending uncertainty for stablecoin issuers like Tether and Circle.
The GENIUS Act, passed by the Senate on June 17 with a 68-30 vote, mandates 1:1 reserve backing with liquid assets, monthly audits, and federal oversight for issuers with over $10 billion in assets, aiming to enhance transparency in the $253 billion stablecoin market.
The delay, attributed to debates over reconciling House and Senate versions, particularly regarding anti-money laundering provisions, has sparked concerns among issuers seeking regulatory clarity.
The GENIUS Act’s framework is critical for stablecoins like Tether’s $158 billion USDT and Circle’s $61 billion USDC, which dominate 90% of the market.
The bill restricts non-financial firms, such as Walmart, from issuing stablecoins without regulated partners, aligning with the U.S.’s push to maintain dollar dominance in digital finance.
However, critics, including some Democrats, argue the bill lacks robust protections against foreign issuers and big tech involvement, slowing progress.
The Bank for International Settlements (BIS) warned on June 24 that stablecoins could disrupt monetary policy if unregulated, urging global coordination.
The delay impacts firms like PayPal, whose PYUSD stablecoin operates on Solana, and Ripple, with its RLUSD backed by BNY Mellon. Issuers face pressure to comply with varying global standards, such as the EU’s MiCA framework, which enforces strict reserve rules.
The BIS noted that stablecoins’ $28 trillion in 2024 transactions highlight their systemic importance, making regulatory clarity urgent.
The House’s ‘Crypto Week,’ starting July 14, aims to address these issues, but prolonged delays could push issuers to jurisdictions like Hong Kong, where a Stablecoin Ordinance has spurred $1.2 billion in issuance.
Stablecoin issuers are preparing for compliance, with Circle’s banking charter application and Tether’s $8 billion gold reserve signaling proactive steps.
However, the delay risks market uncertainty, potentially affecting USDC’s 24% market share and USDT’s dominance. The outcome of the vote will shape the U.S.’s role in the global stablecoin race, balancing innovation with financial stability.
