Circle asserts that the GENIUS Act will remain in effect thanks to its bipartisan support

On October 25, 2026, Jeremy Allaire, CEO of Circle, assured that the GENIUS Act , the US law regulating stablecoins, would remain in effect despite political uncertainties. This statement, which came after the publication of the final rules from the Office of the Comptroller of the Currency (OCC), confirms a stable regulatory framework for issuers like Circle, whose USDC stablecoin dominates nearly one-third of the US market. This clarity could strengthen the appeal of these assets for institutional investors. Context Stablecoins, crypto-assets designed to maintain a stable value (generally pegged to the dollar), occupy a central place in the digital financial ecosystem. Their use extends from cross-border transactions to trading operations and payments. However, their regulation has long been fragmented, or even non-existent, in the United States. The GENIUS Act , adopted on July 18, 2025, marked a turning point by establishing strict requirements for issuers, notably 100% reserves and monthly audits. This law, supported by a broad bipartisan majority, aimed to reduce the risks of bank runs ( run ) and align stablecoins with the standards of traditional financial institutions. Circle, the issuer of USDC – the second largest stablecoin in terms of market capitalization after Tether (USDT) – has been one of the primary beneficiaries of this framework. In 2026, the company controlled more than 30% of the stablecoin volume in the United States, according to public data. However, its exposure to European regulations remains limited: USDC is not yet listed under the MiCA (Markets in Crypto-Assets) regime, which has regulated crypto-assets in the European Union since 2024. The confirmation of the GENIUS Act 's maintenance comes in a relatively stable market context, with a neutral Fear & Greed index (54/100) and Bitcoin and Ethereum prices slightly down over seven days, according to CryptoScore Pro data as of October 25, 2026. The Facts During an interview with CNBC on October 21, 2026, Jeremy Allaire stated that the GENIUS Act would not be repealed by the Democrats, even in the event of a political shift in the House of Representatives. This statement is based on the broad bipartisan support obtained during the passing of the law: 68 votes to 30 in the Senate and 308 to 122 in the House, including 102 Democrats in the lower house and 18 in the Senate. These margins, according to Allaire, make a reversal unlikely, as Democratic lawmakers are unlikely to backtrack on a vote they supported themselves. The final OCC rules, published on the same day as the interview, specify the application modalities of the GENIUS Act . They notably impose: 100% reserves for every stablecoin in circulation, guaranteeing a 1:1 ratio with the underlying assets; Accelerated redemption processes for stablecoin holders; Custody rules and capital ratios for issuers. These provisions will come into effect on January 18, 2027, the date on which the GENIUS Act will become fully effective. Unauthorized issuers will be prohibited from operating in the US payment stablecoin market. According to CryptoScore Pro data as of October 25, 2026, the market capitalization of USDC stood at 73.3 billion dollars in the second quarter of 2026, up 19% year-on-year. No information has been disclosed regarding the exact composition of Circle's reserves, nor on any adjustments made to comply with the new requirements. The next reserve audit, scheduled for February 2027, is expected to provide further details on this matter. The CryptoBriefing article highlights that the GENIUS Act was presented by Allaire as a guarantee of stability for the digital dollar, strengthening its role in the American economy. However, the source does not specify whether other stablecoin issuers, such as Tether or Paxos, have already taken steps to comply with the new rules. Understanding Key Concepts Stablecoin and its peg A stablecoin is a crypto-asset designed to maintain a stable value, generally pegged to a fiat currency such as the US dollar. Unlike volatile cryptocurrencies like Bitcoin, its goal is to limit price fluctuations to facilitate transactions and payments. For example, one USDC is always worth 1 dollar, thanks to reserves in dollars or equivalent assets held by the issuer. This anchoring ( peg ) relies on users' trust in the issuer's ability to honor redemptions at any time. 100% Reserves and the risk of a run 100% reserves mean that every stablecoin in circulation is backed by an equivalent asset (dollar, government bond, etc.) held by the issuer. This requirement aims to prevent a run , meaning a panic among holders who would withdraw their funds en masse, exhausting the reserves. The GENIUS Act imposes this rule to align stablecoins with banking standards, where deposits must be covered by liquid assets. For example, if an issuer has 10 billion stablecoins in circulation, it must hold 10 billion dollars in reserves. MiCA (Markets in Crypto-Assets) The MiCA regulation, which entered into force in the European Union in 2024, provides a framework for crypto-asset issuers, including stablecoins. It imposes transparency, capital, and governance requirements, as well as supervision by national authorities. Unlike the GENIUS Act , which specifically targets payment stablecoins, MiCA applies to all crypto-assets. The absence of USDC from this framework means that Circle is not subject to European obligations, limiting its exposure to the Old Continent's regulations. Analysis: what is at stake The confirmation of the maintenance of the GENIUS Act introduces a regulatory stabilization mechanism for stablecoins, including Circle's USDC, which represents more than 30% of US volume according to 2026 public data. This legal framework, by imposing 100% reserves and monthly audits, reduces the risk of a run (massive withdrawals) and aligns these assets with traditional banking standards. In the short term, this clarity should support USDC liquidity,…