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

Pressure mounts on financial watchdogs as a key legislator pushes for urgent action on the long-awaited stablecoin framework.

The Regulatory Countdown

The clock is ticking. With a legislative deadline fast approaching, Representative Bryan Steil is publicly urging federal agencies to expedite their review of the proposed GENIUS Act. The move signals growing impatience on Capitol Hill with the pace of crypto regulation, particularly for dollar-pegged digital assets that have become the backbone of decentralized finance.

Why the Rush?

Stablecoins sit at a critical junction—bridging traditional finance and the crypto ecosystem. Proponents argue clear rules are essential for consumer protection and maintaining U.S. competitiveness. Delays, they warn, could cede ground to other jurisdictions and leave a multi-billion dollar market in regulatory limbo. It’s the classic Washington dance: a race against the calendar, where the finish line keeps moving just out of reach.

The GENIUS Blueprint

The proposed legislation aims to create a federal licensing regime for stablecoin issuers, clarifying which agencies hold oversight and what reserves are required. The goal? To provide the certainty that institutions and developers crave—without stifling the innovation that drives the sector forward. Think of it as trying to build guardrails on a highway while the cars are already speeding past at 100 miles per hour.

A Provocative Close

Whether this latest push cuts through the bureaucratic inertia remains to be seen. One thing's certain: in the world of finance, where 'move fast and break things' meets 'comply or die,' regulators are learning that technology waits for no one—not even a congressional subcommittee. After all, nothing motivates action like a looming deadline, except perhaps the fear of being left behind while the next financial revolution bypasses traditional gatekeepers entirely.

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 first U.S. statute to impose a unified federal structure on stablecoin issuers.

The law gives regulators until July 18, 2026, to complete the full set of implementing rules, although the framework will not take effect until the earlier of two dates: January 18, 2027, or 120 days after final regulations are published.

That timeline pressurizes agencies preparing the first wave of proposals.

Steil said the committee has seen cases where Congress passes a bill but implementing regulations arrive late or stall.

Breaking crypto Update
⁰NCUA Chair @kylehauptman confirms we are on track to implement the GENIUS Act by July 18. pic.twitter.com/Elvgme0f75

He told regulators that delivering the GENIUS Act on schedule is essential, especially as stablecoins play an increasingly important role in global dollar liquidity and digital-asset markets.

During the exchange, NCUA Chairman Kyle Hauptman assured lawmakers that the credit union regulator expects its first GENIUS-related rulemaking to focus on the application process for issuers.

Hauptman said the agencies involved understand the July deadline and are working to meet it.

The hearing brought together 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 prepared remarks released before the hearing, FDIC Acting Chair Travis Hill said his agency expects to publish its first proposal later this month, establishing the application process for stablecoin issuers supervised by the FDIC.

The Federal Deposit Insurance Corporation will publish its first US stablecoin rule framework later this month.#Stablecoin #FDIChttps://t.co/yuIdMYcRek

Hill said the FDIC’s responsibilities extend well beyond licensing, noting that the law tasks his agency with defining the capital, liquidity, and reserve standards that bank-issued stablecoins must meet.

He said a separate proposal detailing prudential standards is planned for early next year, setting up a two-step regulatory rollout.

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

The GENIUS Act WOULD require stablecoin issuers to maintain one-to-one backing with U.S. dollars or high-quality liquid assets and introduce annual audits for firms whose tokens exceed a $50 billion market cap.

It also outlines the first federal standards for foreign-issued stablecoins, giving Washington a clearer framework for overseeing offshore projects.

Federal agencies have already begun laying groundwork for implementation.

The Treasury Department has opened multiple public consultations to gather industry input on stablecoin rule designed and how illicit-finance risks should be monitored.

The U.S. Treasury is calling on the public for feedback on how financial institutions can prevent crypto risks as part of the GENIUS Act. #Treasury #GENIUSActhttps://t.co/7Bu5ExndQt

Treasury Secretary Scott Bessent said the feedback will shape ongoing research into compliance tools, including their effectiveness and privacy impact.

He called the GENIUS Act “essential” to maintaining U.S. leadership in the stablecoin market.

The legislative process, however, continues to feature political flashpoints.

During the latest hearing, Rep. Maxine Waters raised concerns about whether a sitting president should hold business interests in sectors they regulate, referencing President Trump’s LINK to the World Liberty Financial project.

She said the situation highlights unresolved conflict-of-interest questions that Congress must address.

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 year, assigning oversight responsibilities between the Commodity Futures Trading Commission and the Securities and Exchange Commission based on token classifications.

GENIUS Act, Anti-CBDC Act, and CLARITY Act pass crucial procedural vote 215-211 in Congress after Trump's decisive Oval Office intervention rescues stalled crypto agenda.#GeniusAct #Trumphttps://t.co/Lm2tCBbimp

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

Another key proposal, the Anti-CBDC Surveillance State Act, is also pending in the Senate.

It would bar the Federal Reserve from issuing a retail central bank digital currency without explicit congressional authorization, a step supporters argue is necessary to safeguard financial privacy.