When using most Genesis themes, the Reading Settings page should always have “Front page displays” set to “Your latest posts”. You don’t have to set the home or blog page here, its already setup for you.
Your home page will automatically show the home.php file within your theme.
For the blog, you simply create a page, name it Blog (or whatever you want) then select “Blog” from the template selector on the right of the page.
This is how most Genesis themes are setup, at least the ones with the home.php file already included.