US Crypto Industry Sees Potential Progress as GENIUS Act Nears Trump’s Approval

• The US Congress has marked a pivotal moment for the crypto industry with the passage of the GENIUS Act, signaling stronger regulatory clarity for stablecoins and digital assets.

• Alongside the GENIUS Act, the House approved the CLARITY Act and an Anti-CBDC bill, setting the stage for significant legislative developments in the crypto regulatory landscape.

• According to COINOTAG sources, bipartisan support in the House reflects growing recognition of crypto’s role in the US financial system, despite ongoing debates in the Senate.

US Congress advances GENIUS Act and CLARITY Act, boosting crypto regulation clarity and stablecoin standards amid bipartisan support and Senate scrutiny.

GENIUS Act Advances Stablecoin Regulation with Presidential Approval Expected

The GENIUS Act (Guiding and Establishing National Innovation for US Stablecoins) has successfully passed the House and is now headed to President Trump’s desk for signature. This landmark legislation aims to establish a comprehensive regulatory framework for stablecoins, with the law coming into effect either 18 months post-signature or 120 days after federal regulators finalize implementing rules.

Key provisions include stringent reserve requirements and compliance with the Bank Secrecy Act, ensuring that stablecoin issuers maintain transparency and financial integrity. Legal experts, such as Logan Payne from Winston & Strawn, emphasize that the Act will likely compel many stablecoin issuers to pursue bank charters to expand their operational scope beyond stablecoin issuance without navigating complex state licensing.

Despite the bill’s broad support, some industry leaders, including Coinbase CEO Brian Armstrong, expressed disappointment over the exclusion of provisions allowing stablecoin issuers to pay interest on customer reserves, a feature they argue would democratize access to yield opportunities on-chain.

Additionally, the Act restricts foreign stablecoin issuers from operating in the US unless their home country’s regulatory framework is deemed comparable by the US Treasury, reflecting a cautious approach to cross-border stablecoin activity.

Implications for Stablecoin Issuers and the Banking Sector

The GENIUS Act’s requirement for stablecoin issuers to adhere to banking standards signals a significant shift in the industry’s operational landscape. By encouraging issuers to obtain bank charters, the legislation aims to enhance consumer protections and regulatory oversight while potentially streamlining compliance across jurisdictions.

This move could foster greater institutional participation and trust in stablecoins, positioning them as reliable digital assets within the broader financial ecosystem. However, it also raises questions about the future competitive dynamics between traditional banks and emerging crypto-native entities.

CLARITY Act and Anti-CBDC Bill Head to Senate Amid Bipartisan Debate

The House’s approval of the CLARITY Act and the Anti-CBDC Surveillance State Act marks further progress in defining the US crypto regulatory framework. The CLARITY Act proposes to reclassify digital commodities on mature blockchains, transferring regulatory authority from the SEC to the CFTC, thereby reducing regulatory ambiguity for many crypto assets.

Despite facing criticism from some Democrats concerned about ethics and corruption, the CLARITY Act garnered considerable bipartisan support, with 78 Democrats voting in favor. This reflects a growing consensus on the need for clearer regulatory boundaries to foster innovation while protecting investors.

The Anti-CBDC bill, sponsored by Representative Tom Emmer, aims to prohibit the Federal Reserve from issuing a central bank digital currency, citing privacy and civil liberties concerns. While the vote was more divided, recent polls indicating a notable portion of Democrats oppose CBDCs suggest the bill could gain traction in the Senate.

Senate Outlook and Potential Legislative Challenges

With a slimmer Republican majority in the Senate, the CLARITY and Anti-CBDC bills face a more complex path forward. Senators like Elizabeth Warren have voiced opposition, particularly regarding the CLARITY Act’s potential to allow major corporations to circumvent SEC oversight.

Nonetheless, the bipartisan momentum and increasing pro-crypto sentiment among lawmakers indicate that amendments and negotiations could lead to eventual passage. The Senate’s deliberations will be critical in shaping the final regulatory environment for digital assets in the US.

Crypto Industry Responds with Optimism and Calls for Continued Progress

Industry leaders have welcomed the legislative advances as foundational steps toward integrating crypto into the US financial system. Nathan McCauley, CEO of Anchorage Digital, highlighted the importance of regulatory clarity in distinguishing securities from commodities to enhance market transparency.

James Harris, CEO of Tesseract, emphasized the global implications of US crypto policy, noting that regulatory frameworks established in the US often influence international standards. He warned that delays in legislation could cede competitive advantage to jurisdictions like the UAE and Hong Kong.

The growing political support for crypto-friendly laws suggests a shift from uncertainty toward structured governance, potentially accelerating innovation and adoption across sectors.

Future Prospects for US Crypto Regulation

As these bills progress through the Senate, stakeholders are encouraged to engage with policymakers to ensure balanced regulations that protect consumers without stifling innovation. The evolving legislative landscape presents opportunities for the US to solidify its leadership in digital asset markets.

Continued dialogue between regulators, industry participants, and lawmakers will be essential to address emerging challenges and harness the full potential of blockchain technology within the financial system.

Conclusion

The passage of the GENIUS Act and the advancement of the CLARITY and Anti-CBDC bills represent significant milestones in US crypto regulation. These developments promise enhanced regulatory clarity, stronger consumer protections, and a more defined role for stablecoins and digital assets in the financial ecosystem. While challenges remain in the Senate, bipartisan support and industry optimism suggest that comprehensive crypto legislation is on the horizon, marking a new chapter for digital finance in the United States.