Key Takeaways
- President Donald Trump said he expects the GENIUS Act to clear a key procedural hurdle Wednesday after the stablecoin bill ran into resistance a day earlier.
- The price of Bitcoin climbed above $119,000, and shares of crypto companies like Circle and Coinbase improved in recent trading.
- Trump said on Truth Social he convinced Republicans who voted with Democrats in blocking the bill to reverse their position.
- The GENIUS Act would create a framework for private companies to issue stablecoins, a type of crypto asset with its value tied to a traditional currency or other financial asset such as the U.S. dollar.
Bitcoin (BTCUSD) and other major cryptocurrencies traded higher Wednesday after President Donald Trump said he expects the House to pass the GENIUS Act.
A key part of “Crypto Week,” the Act would allow private companies to issue stablecoins, something traditional finance firms such as such as JPMorgan (JPM) are making a play for already. Stablecoins are cryptocurrencies that have their value pegged to another financial asset, typically a traditional currency like the U.S. dollar.
Shares of stablecoin issuer Circle Internet Group (CRCL) were up 14% in recent trading, reversing course from Tuesday after a minor hiccup for the legislation in the House. Bitcoin, which set multiple price records in recent days due to optimism around crypto week, climbed above $119,000 Wednesday after a fumble the day before. Ether (ETHUSD), the native token of the Ethereum blockchain, and shares of cryptocurrency exchange Coinbase (COIN) also rose.
The GENIUS Act failed a procedural vote after more than a dozen Republicans joined Democrats in blocking the Act and two other crypto bills from reaching the House floor Tuesday. President Trump said he met with the holdouts from his party and convinced them to change their minds.
“I am in the Oval Office with 11 of the 12 Congressmen/women necessary to pass the GENIUS Act and, after a short discussion, they have all agreed to vote tomorrow morning in favor of the Rule,” Trump posted on Truth Social late Tuesday. “Speaker of the House Mike Johnson was at the meeting via telephone, and looks forward to taking the Vote as early as possible.”
If the House approves the GENIUS Act (separate from this procedural step), as passed by the Senate last month, the stablecoin bill would move to Trump’s desk for signature.
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