Rep. Steil Demands Regulators Fast-Track GENIUS Act as Stablecoin Law Deadline Looms

Regulators are dealing with rising strain from Congress to speed up implementation of the United States’ new stablecoin legislation, with Rep. Bryan Steil warning that the one-year rulemaking deadline is approaching.

During a House Financial Services Committee hearing on Tuesday, Steil urged company heads to supply concrete updates on their progress in rolling out the Guiding and Establishing National Innovation for U.S. Stablecoins Act, which President Donald Trump signed into legislation on July 18.

FDIC to Publish First GENIUS Act Proposal This Month as Multi-Agency Effort Begins

The Genius Act, signed into law on July 18, 2025, is the primary U.S. statute to impose a unified federal construction on stablecoin issuers.

The legislation provides regulators till July 18, 2026, to finish the complete set of implementing guidelines, though the framework is not going to take impact until the sooner of two dates: January 18, 2027, or 120 days after ultimate laws are printed.

That timeline pressurizes companies making ready the primary wave of proposals.

Steil stated the committee has seen circumstances the place Congress passes a invoice however implementing laws arrive late or stall.

He advised regulators that delivering the GENIUS Act on schedule is crucial, particularly as stablecoins play an more and more necessary function in world greenback liquidity and digital-asset markets.

During the trade, NCUA Chairman Kyle Hauptman assured lawmakers that the credit score union regulator expects its first GENIUS-related rulemaking to give attention to the appliance course of for issuers.

Hauptman stated the companies concerned perceive the July deadline and are working to fulfill it.

The listening to introduced collectively leaders from the Federal Reserve, the Office of the Comptroller of the Currency, the National Credit Union Administration, and the Federal Deposit Insurance Corporation.

In ready remarks launched earlier than the listening to, FDIC Acting Chair Travis Hill said his agency expects to publish its first proposal later this month, establishing the appliance course of for stablecoin issuers supervised by the FDIC.

Hill stated the FDIC’s obligations prolong effectively past licensing, noting that the legislation duties his company with defining the capital, liquidity, and reserve requirements that bank-issued stablecoins should meet.

He stated a separate proposal detailing prudential requirements is deliberate for early subsequent yr, organising a two-step regulatory rollout.

GENIUS Act Moves Forward Alongside CLARITY Act and Anti-CBDC Proposals

The GENIUS Act would require stablecoin issuers to keep up one-to-one backing with U.S. {dollars} or high-quality liquid belongings and introduce annual audits for companies whose tokens exceed a $50 billion market cap.

It additionally outlines the primary federal requirements for foreign-issued stablecoins, giving Washington a clearer framework for overseeing offshore tasks.

Federal companies have already begun laying groundwork for implementation.

The Treasury Department has opened multiple public consultations to assemble business enter on stablecoin rule designed and the way illicit-finance dangers needs to be monitored.

Treasury Secretary Scott Bessent stated the suggestions will form ongoing analysis into compliance instruments, together with their effectiveness and privateness affect.

He referred to as the GENIUS Act “important” to sustaining U.S. management within the stablecoin market.

The legislative course of, nevertheless, continues to function political flashpoints.

During the most recent listening to, Rep. Maxine Waters raised considerations about whether or not a sitting president ought to maintain enterprise pursuits in sectors they regulate, referencing President Trump’s link to the World Liberty Financial project.

She stated the scenario highlights unresolved conflict-of-interest questions that Congress should tackle.

Regulatory momentum is advancing in parallel with broader market-structure efforts on Capitol Hill.

The House passed its digital-asset package, the CLARITY Act, earlier this yr, assigning oversight obligations between the Commodity Futures Trading Commission and the Securities and Exchange Commission based mostly on token classifications.

The bill still awaits Senate consideration, and analysts say its prospects stay unclear.

Another key proposal, the Anti-CBDC Surveillance State Act, can also be pending within the Senate.

It would bar the Federal Reserve from issuing a retail central financial institution digital foreign money with out express congressional authorization, a step supporters argue is important to safeguard monetary privateness.

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