Key Takeaways
Fed Chair Kevin Warsh told the House Financial Services Committee on July 14 that the central bank is racing to publish its GENIUS Act stablecoin rules but would not commit to the law's July 18 deadline.
The one-year rulemaking deadline shapes who can issue payment stablecoins in the US, along with the reserve, redemption, custody, and capital requirements they must meet.
Warsh's prepared remarks never mentioned crypto or digital assets, and a 3.5% June CPI reading kept inflation at the center of his first appearance as chair.
Federal Reserve Chair Kevin Warsh spent his first day of congressional testimony on July 14 talking mostly about inflation. The exchange that matters for stablecoins came under questioning, when Warsh said the Fed is doing its best to publish its required GENIUS Act rules by Saturday, July 18, but could not commit to hitting the date. He told lawmakers the central bank is racing to get the proposal out and hopes to release it in unison with the other regulatory agencies, according to American Banker.
The deadline is written into the law. The GENIUS Act, signed July 18, 2025, gave federal regulators, Treasury, and state regulators one year to issue the implementing rules that decide who qualifies as a permitted payment stablecoin issuer and set the standards for reserves, redemption, custody, and capital. The OCC and Treasury have already published proposals. The Fed has not. The timing carries real weight because the law takes effect at the earlier of 18 months after enactment or 120 days after the rules are finalized.
The notable part is what was missing. Warsh's prepared remarks did not mention crypto, stablecoins, or digital assets once. His focus stayed on prices, after June CPI came in at 3.5%, down from 4.2% in May.
"The members of our Committee have no tolerance for persistently elevated inflation," Warsh said in his prepared testimony.
He also told lawmakers the Fed does not want to be in the business of bailing anyone out, crypto firms included. He faces the Senate Banking Committee on July 15.
Whether the rules land by Saturday or slip, the infrastructure they will govern keeps moving. Circle just opened a national trust bank for USDC under final OCC approval, and a merged CLARITY Act draft is expected the week of July 20. Worth watching.
People Also Ask
What is the GENIUS Act's July 18, 2026 deadline?
It is the one-year rulemaking deadline in the stablecoin law signed July 18, 2025. Federal regulators, Treasury, and state regulators were given one year to issue the rules that implement the act.
What happens if the Fed misses the GENIUS Act deadline?
The law still takes effect at the earlier of 18 months after enactment or 120 days after the rules are finalized. Late rules mainly extend uncertainty for new issuers, foreign issuers, and state-qualified issuers waiting to learn the requirements.
Did Kevin Warsh talk about crypto in his first testimony as Fed chair?
Not in his prepared remarks, which never mentioned crypto or digital assets. The GENIUS Act deadline and the Fed's stance on bailouts only came up when committee members asked.
Who regulates stablecoins under the GENIUS Act?
The Federal Reserve, the OCC, and Treasury share the federal role, with FinCEN and OFAC handling anti-money-laundering and sanctions rules. States can also qualify issuers if their regimes are substantially similar to the federal framework.