[Market Focus] Stablecoin Stocks Weaken as U.S. House Stalls 'Genius Act'

On July 16, stocks related to stablecoins in the South Korean stock market are collectively showing weakness, following a setback in the passage of cryptocurrency-related bills, including the 'Genius Act,' in the U.S. Congress.

As of 10:10 a.m. on this day, shares of Me2on are trading at 5,110 won per share, down 2.67% from the previous session. DeepMind and Nexxus, which are also classified as stablecoin-related stocks along with Me2on, are down 1.04% and 2.45%, respectively. Kukon and Hecto Financial have also declined slightly.

This development is seen as a result of the procedural vote for the start of deliberations on related bills being rejected in the U.S. House of Representatives on July 15 (local time). The U.S. House had originally designated this week as "Crypto Week" and planned to address three bills: the 'Genius Act,' which aims to bring stablecoins into the regulatory framework; the 'Clarity Act,' which seeks to clarify regulations on digital assets; and the 'CBDC Anti-Surveillance State Act,' which would prohibit the Federal Reserve (Fed) from issuing a central bank digital currency (CBDC).

However, disagreements over how to handle the bills have stalled their progress. The Republican leadership in the House, who are leading the push for the bills, wanted to deliberate on each bill separately. However, some Democrats and Republicans opposed this approach, insisting that the 'Genius Act' and the 'CBDC Anti-Surveillance State Act' be combined and that the 'Genius Act' be amended.

If the two bills are combined and amended, the 'Genius Act,' which has already passed the Senate, would need to pass the Senate again before it could be signed by President Donald Trump.