GOP to Democrats: Catch Up or Step Aside—GENIUS Act Hits the Floor Thursday

Republican lawmakers are pressing forward with the long-awaited GENIUS Act, a landmark bill aimed at establishing a federal regulatory framework for stablecoins, as it heads to a floor vote in the House on Thursday—despite mounting objections from Democratic members.

The bill, formally known as the Guaranteed Essential Neutrality in the Issuance of Stablecoins (GENIUS) Act, seeks to clarify the roles of state and federal regulators in overseeing stablecoin issuers, provide protections for consumers, and establish reserve and audit requirements for fiat-backed digital assets.

Led by House Financial Services Committee Chair Patrick McHenry (R-NC), Republicans have framed the legislation as a necessary step to provide regulatory certainty, foster innovation, and preserve U.S. leadership in the digital asset space. “This is about ensuring stablecoin regulation doesn’t get left behind in a global race we’re already losing,” said McHenry during a press briefing.

Democrats, however, have voiced concerns that the bill lacks sufficient safeguards and gives too much deference to state-level regulators. Ranking Member Maxine Waters (D-CA) criticized the legislation for what she called a “light-touch” approach, arguing that it opens the door to systemic risks and consumer abuse if stablecoin issuers are not tightly regulated.

Despite previous bipartisan negotiations, talks between the parties stalled earlier this year over differences in oversight mechanisms and the role of the Federal Reserve. As the GOP moves to advance the bill unilaterally, Democratic lawmakers warn it could set back future efforts to build a comprehensive digital asset policy.

Industry stakeholders are watching closely, with some praising the bill’s clarity and others urging a more cautious path forward. If passed in the House, the GENIUS Act would still face an uphill battle in the Senate, where appetite for crypto regulation remains mixed.

The outcome of Thursday’s vote may prove pivotal—not just for the future of stablecoins in the U.S., but for the broader trajectory of digital asset legislation in a divided Congress.