Circle CEO Jeremy Allaire stated that the GENIUS Act, a federal law governing stablecoins, is unlikely to be repealed even if political control of the House shifts. Allaire emphasized that the legislation secured significant bipartisan support during its passage, which serves as a safeguard against future political reversals.
The GENIUS Act was signed into law on July 18, 2025, following a Senate vote of 68-30 and a House vote of 308-122. On October 21, 2026, the Office of the Comptroller of the Currency (OCC) published final implementation rules, which establish standards for reserve requirements, capital ratios, and custody.
Under the new regulations, issuers must maintain full 1:1 reserves for stablecoins in circulation. The rules also mandate faster redemption processes and restrict the issuance of payment stablecoins to approved entities only. These requirements are set to take full effect on January 18, 2027.
Allaire noted that this regulatory framework provides long-term policy certainty for USDC, which reached a circulation of $73.3 billion in Q2 2026, marking a 19% year-on-year increase. He suggested that this clarity positions stablecoins more favorably compared to other sectors of the digital asset market.
