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On July 17, 2025, the US House of Representatives passed three landmark cryptocurrency bills: the GENIUS Act, the Clarity Act, and the Anti-CBDC Surveillance State Act. This historic move marks a significant step toward establishing a federal regulatory framework for digital assets, particularly stablecoins, while addressing concerns about central bank digital currencies (CBDCs). These bills, passed after intense debates and a record-breaking procedural vote, are poised to reshape the U.S. cryptocurrency landscape. Here’s a detailed look at what these bills mean for the crypto industry and investors.
The GENIUS Act: Regulating Stablecoins
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, passed with a 308-122 vote, establishes the first federal framework for dollar-pegged stablecoins, a $262 billion market critical to crypto trading and payments. Key provisions include:
- Reserve Requirements: Stablecoin issuers are required to support their tokens with liquid assets like U.S. dollars or short-term Treasury securities to maintain stability and safeguard consumers.
- Transparency: Issuers with over $50 billion in tokens must conduct annual audits, and those exceeding $10 billion face federal oversight unless exempted.
- Consumer Protections: The act mandates priority repayment for coin holders in case of issuer bankruptcy and enforces anti-money laundering and anti-terrorism compliance.
The GENIUS Act, already passed by the Senate in June 2025 with a 68-30 vote, is now headed to President Donald Trump’s desk, where it is expected to be signed into law soon. Advocates, such as Senator Bill Hagerty, claim it updates the U.S. payment infrastructure and reinforces the dollar’s position as a global leader. However, critics like Senator Elizabeth Warren warn it lacks robust safeguards against conflicts of interest, particularly citing Trump’s crypto ventures, such as World Liberty Financial.
The Clarity Act: Defining Crypto Oversight
The Digital Asset Market Clarity Act, passed with a 294-134 vote, aims to resolve long-standing regulatory ambiguity in the crypto industry by defining when digital assets are securities or commodities. Key features include:
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- Regulatory Division: The act designates regulatory responsibilities to the Securities and Exchange Commission (SEC) for securities and to the Commodity Futures Trading Commission (CFTC) for commodities such as Bitcoin.
- Industry Clarity: It provides clear rules for crypto firms on registration, disclosure, and compliance, addressing complaints about the SEC’s prior “regulation by enforcement” approach under the Biden administration.
- Bipartisan Support: Despite opposition from some Democrats, including Representative Maxine Waters, who cited risks of financial instability and potential exploitation, 78 Democrats joined Republicans to pass the bill.
The Clarity Act still needs approval from the Senate, where its future is uncertain due to worries about insufficient regulation. Nevertheless, its approval in the House indicates growing support for crypto-friendly laws.
The Anti-CBDC Act: Blocking Digital Dollars
The Anti-CBDC Surveillance State Act, approved by a 219-210 vote, blocks the Federal Reserve from launching a central bank digital currency (CBDC). Key aspects include:
- Privacy Concerns: The bill addresses Republican fears that a CBDC could enable government surveillance of financial transactions, with figures like Representative Tom Emmer emphasizing strict rules to prevent loopholes.
- Integration with Defense Bill: After a GOP revolt stalled initial votes, a compromise tied the Anti-CBDC provisions to the National Defense Authorization Act (NDAA), ensuring broader support.
This act faces an uncertain future in the Senate, where it lacks the bipartisan backing of the GENIUS Act. Critics, including some Republicans like Representative Marjorie Taylor Greene, argued that the GENIUS Act alone does not sufficiently block CBDC risks, highlighting ongoing tensions within the GOP.
A Tumultuous Path to Passage
The passage of these bills followed a dramatic “Crypto Week” in Congress, marked by a conservative revolt that delayed procedural votes. On July 15, 12 hardline Republicans, including Representatives Chip Roy and Marjorie Taylor Greene, tanked an initial vote, demanding stronger anti-CBDC measures. After over ten hours of negotiations—the longest House vote on record—and direct intervention from President Trump, a compromise was reached to advance the bills by integrating anti-CBDC language into the NDAA. This development enabled the House to approve House Resolution 580 (217-212), paving the way for final votes scheduled on July 17.
Also Read: DeFi Meets D.C.: SEC’s ‘DeFi and the American Spirit’ Roundtable Unraveled
Implications for the Crypto Industry
The passage of these bills is a major victory for the crypto industry, which spent over $119 million backing pro-crypto candidates in the 2024 election cycle. Key impacts include:
- Stablecoin Growth: The GENIUS Act provides a clear pathway for banks and fintechs to issue stablecoins, potentially increasing competition in a market dominated by Tether (USDT) and Circle (USDC). Experts forecast that the U.S. stablecoin market could expand to $2 trillion in the near future.
- Regulatory Clarity: The Clarity Act addresses long-standing industry demands for clear rules, potentially reducing legal battles and fostering innovation.
- Global Leadership: Supporters, such as House Speaker Mike Johnson, believe these laws establish the U.S. as the “crypto capital of the world,” challenging nations that have already implemented CBDCs.
However, critics like Senator Jeff Merkley caution that the bills may favor industry insiders, including Trump’s ventures, without adequate consumer protections or conflict-of-interest safeguards.
What’s Next?
The GENIUS Act is expected to be signed into law soon, making it the first standalone crypto legislation in US history. The Clarity and Anti-CBDC Acts are pending Senate review, with the Clarity Act expected to undergo changes and the Anti-CBDC Act facing uncertainty due to a lack of strong bipartisan backing. As the crypto industry celebrates this milestone, debates over regulation, privacy, and innovation will continue to shape the future of digital assets in the U.S.
For investors and crypto enthusiasts, these developments signal a more structured and potentially safer market, but vigilance remains key as the regulatory landscape evolves.
FAQs
What does the GENIUS Act do for stablecoins?
It establishes a federal framework for stablecoins, requiring issuers to hold liquid reserves, conduct audits, and prioritize consumer repayments in case of bankruptcy.
How does the Clarity Act impact crypto regulation?
The Clarity Act defines whether digital assets are securities or commodities, splitting oversight between the SEC and CFTC to provide clear rules for crypto firms.
Why was the Anti-CBDC Act passed?
It bans the Federal Reserve from issuing a central bank digital currency, addressing concerns about government surveillance of financial transactions.
What happens next with these crypto bills?
The GENIUS Act is pending the President’s signature, whereas the Clarity and Anti-CBDC Acts still require Senate approval, with their outcomes uncertain due to differing levels of bipartisan support.
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