House Delays GENIUS Act Despite Trump's Push

The stablecoin oversight bill, known as the GENIUS Act, which recently passed the U.S. Senate, is facing significant hurdles in the House of Representatives, despite President Donald Trump's push for its swift approval. The bill aims to establish the first federal framework for stablecoins in the United States, with key provisions that would govern the issuance and management of stablecoins, ensuring they are backed by adequate reserves and subject to stringent oversight.

President Trump last week publicly urged the House of Representatives to “move LIGHTNING FAST, and pass a ‘clean’ GENIUS Act”. However, Representative French Hill, Chairman of the House Financial Services Committee, signaled a more cautious approach. Speaking at the Brookings Institution, Hill was hesitant to commit to simply rubber-stamping the Senate’s version. He confirmed ongoing discussions with House leadership, indicating several issues require ironing out between the Senate-approved bill and the House’s own Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act, which remains in progress.

“What I’m open to is listening to my colleagues,” Hill stated, emphasizing that he spent the previous week gauging House members’ preferred approaches to meet President Trump’s August deadline. While declining to reveal his specific intentions, Hill outlined “some differences — some subtle, some material” between the two bills. Key areas of divergence include the extent of U.S. legal enforcement outside its borders, the division of roles between state and federal agencies, and concerns regarding the potential for corporations to issue stablecoins.

Despite these differences, Hill expressed optimism, stating, “The Senate and the House can definitely find a common constructive landing place.” However, achieving this common ground would necessitate modifications to the GENIUS Act, potentially clashing with President Trump’s demand for a “clean” and unamended passage. The path forward for stablecoin legislation remains a subject of intense debate and negotiation in Congress.

Rashan Colbert, Policy Director for the Crypto Council for Innovation, underscored the complexity. “There is a finite amount of time that folks can really spend on one issue,” Colbert noted. “Crypto is taking a lot of time, a lot of mental energy for legislators, and so there is still some work to be done to figure out whether the bills will be combined in one process, or whether they’ll be separated.”

The Senate's passage of the bill signals a growing political momentum behind the technology, as lawmakers recognize the potential benefits of stablecoins in lowering government borrowing costs and reducing national debt. However, the bill's journey through the House is fraught with challenges. A key House lawmaker has expressed reservations about the bill, citing concerns over its potential impact on financial stability and consumer protection. This resistance highlights the deep divisions within the Republican-controlled House, where some members are wary of the rapid pace at which the Senate is advancing the legislation.

The bill's fate in the House is further complicated by the Trump administration's push for more favorable regulatory environments for cryptocurrencies. Trump and his family have increasingly expanded their footprint in the crypto space, advocating for policies that could benefit the industry. However, this advocacy has not been enough to overcome the hurdles in the House, where lawmakers are more focused on addressing the potential risks associated with stablecoins.

The Treasury Secretary has also weighed in on the debate, stating that stablecoins can lower government borrowing costs and reduce national debt. This endorsement from the Treasury Department adds another layer of complexity to the legislative process, as lawmakers grapple with the potential benefits and risks of stablecoins. Despite these challenges, the Senate's passage of the bill is a significant victory for the crypto industry, which has long advocated for clearer regulatory frameworks.

The stablecoin oversight bill's journey through the House of Representatives is a testament to the complex and evolving nature of cryptocurrency regulation. As lawmakers continue to debate the bill's merits, the outcome will have far-reaching implications for the future of stablecoins and the broader crypto industry. The bill's success or failure in the House will depend on the ability of lawmakers to address the concerns of both proponents and opponents, and to strike a balance between innovation and regulation.