Circle CEO Jeremy Allaire says Democrats won’t reverse the GENIUS Act
Circle CEO Jeremy Allaire reassured stakeholders that the GENIUS Act won't be reversed by Democrats even if they win control of the House, citing bipartisan support.
Circle CEO Jeremy Allaire has a message for anyone nervous about the midterms: the GENIUS Act isn't going anywhere. Allaire says Democrats will not reverse the stablecoin law even if they win control of the House, pointing out that plenty of Democrats voted for it in the first place.
Allaire made this argument in a CNBC interview on October 21, 2026. That same day, the Office of the Comptroller of the Currency (OCC) released its final rules for implementing the law, which was signed into law on July 18, 2025.
Bipartisan support
The GENIUS Act cleared the Senate 68-30 and the House 308-122, with 102 House Democrats and 18 Senate Democrats voting yes. Allaire argues that this wide support insulates the law from future political swings, as repealing it would require lawmakers to undo their own votes.
Many of the Democrats who would hold the gavel in a flipped House are the same ones who voted for this law.
OCC rules implementation
The OCC's final rules put concrete standards on payment stablecoin issuers, covering reserve requirements, faster redemption processes, custody rules and capital ratios. The headline requirement is full 1:1 reserves, meaning every stablecoin in circulation must be backed by an equivalent asset held in reserve.
The law also bars non-permitted issuers from issuing payment stablecoins in the US, allowing only approved players to operate in that lane. These rules take effect on January 18, 2027, mirroring the timeline for the GENIUS Act becoming fully effective.
Circle's stake
Circle is the issuer of USDC, one of the largest dollar-backed stablecoins with circulation reaching $73.3 billion in Q2 2026, up 19% year-on-year. Allaire noted that the framework gives USDC long-term policy certainty, positioning it better than other digital assets facing regulatory uncertainty.
While Allaire has an obvious interest in the law surviving as it favors his business, the vote tallies he references are a matter of public record. The remaining gap is the January 18, 2027 effective date, when issuers must prepare to meet all reserve, redemption, custody and capital standards.
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