Allaire: Law Opens Door for Institutional Blockchain Build-Out Circle CEO Jeremy Allaire (@jerallaire) has welcomed the passage of the GENIUS Act, telling CNBC that the legislation will unloc
Circle CEO Jeremy Allaire (@jerallaire) has welcomed the passage of the GENIUS Act, telling CNBC that the legislation will unlock blockchain adoption across major financial institutions. Allaire said banks, capital markets firms, payment companies, and enterprises will now be able to build on regulated digital asset infrastructure, and that the framework could materially speed stablecoin adoption across the broader financial system.
He also expects the law to accelerate the migration of traditional finance onto blockchain networks, a shift Circle has been working toward since its founding more than a decade ago.
The GENIUS Act was adopted by the Senate 68-30 on June 17, 2025, and the House 308-122 on July 17, 2025, before President Trump signed it into law on July 18, 2025. It is the first federal law to create a comprehensive regulatory framework for payment stablecoins, digital tokens pegged to monetary value and intended for payments. For the first time, federal law defines who may issue a stablecoin, how it must be backed, and which federal or state regulator must oversee it.
The act replaces a patchwork of state and federal guidance with enforceable standards for reserve assets, redemption rights, disclosures, and custody, while clarifying that compliant stablecoins are neither securities nor commodities. Issuers are required to hold at least one dollar of permitted reserves for every one dollar of stablecoins issued.
The timing is significant for Circle. Allaire has noted that regulatory clarity and technological advancements together drove adoption of stablecoins by major financial institutions, payment firms, neo banks, and large enterprises. Stablecoin transaction volumes have already surpassed those of Visa and Mastercard combined in 2024, with usage up 28% year over year.
For Allaire, the law vindicates years of lobbying. He has spent 12 years testifying before the Senate and House and meeting with policymakers around the world, and five of those years focused specifically on working with members of Congress to enact a stablecoin bill.
SourcesArnold & Porter: Analyzing the GENIUS Act (July 2025)Paul Hastings: A Comprehensive Guide to US Stablecoin RegulationWorld Economic Forum: How Will the GENIUS Act Impact the World?
