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US House Passes Cryptocurrency Legislation

US House Passes Cryptocurrency Legislation

Source: theblock.co7/17/2025

The U.S. House of Representatives has approved important cryptocurrency legislation aimed at establishing a federal regulatory framework for stablecoins and the broader digital asset industry. On Thursday, lawmakers held three votes, passing the Digital Asset Market Clarity Act, the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act), and the Anti-CBDC Surveillance State Act. The House voted 294-134 in favor of the Clarity Act, which adopts a comprehensive approach to regulating the digital asset market. This legislation assigns roles to the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission in overseeing crypto regulations. Additionally, Clarity mandates retail financial disclosures from digital asset firms and requires the separation of corporate and consumer funds, which proponents claim is essential for consumer protection and innovation. After passing the House, the Clarity Act now moves to the Senate. Ji Hun Kim, CEO of Crypto Council for Innovation, described the Clarity Act as a 'milestone,' emphasizing its role in fostering confidence among entrepreneurs and consumers, amidst a landscape often marked by confusion. In a separate vote, lawmakers passed the stablecoin bill GENIUS with a vote of 308-122. Already approved in the Senate, the GENIUS Act requires stablecoins to be fully backed by U.S. dollars or highly liquid assets and mandates annual audits for issuers exceeding $50 billion in market capitalization. This bill is expected to reach President Trump, who is anticipated to sign it into law shortly. Finally, the House passed the anti-central bank digital currency bill with a narrow 219-210 vote. This legislation would prevent the Federal Reserve from issuing a digital currency directly to individuals—an action that would only proceed with congressional approval. Some Republicans originally voted against the bills due to concerns over the GENIUS Act's implications for central bank digital currencies. However, key lawmakers reassured that the GENIUS Act does not enable the Federal Reserve to issue a CBDC, and efforts were made to incorporate a CBDC ban into the National Defense Authorization Act. After revisiting concerns regarding CBDCs, lawmakers managed to move forward and successfully conducted the procedural vote on Wednesday. Looking ahead, while the Clarity Act awaits Senate deliberation, Republican senators are laying the groundwork for related legislation, having set a September 30 deadline for progress. Some House Democrats view the outcome of their votes as pivotal for discussions in the Senate. It remains uncertain if Clarity will serve as a foundational framework or merely as a reference in the Senate's ongoing legislative efforts. Concerns persist from the decentralized finance (DeFi) sector regarding registration requirements and federal preemption status under Clarity. Centralized exchanges may face federal registration, while decentralized platforms could be at risk of inconsistent state regulations, raising apprehensions within the industry. Additional concerns arise regarding Trump's involvement in the crypto realm. Recent estimates suggest that he has made significant financial gains from family crypto activities, including DeFi and stablecoin projects. House Democrats have urged opposition to the Clarity Act and the GENIUS Act, describing these legislative measures as dangerous and beneficial primarily to Trump's crypto interests.

FAQ

  • What does the Clarity Act aim to achieve?

    The Clarity Act seeks to create a comprehensive regulatory framework for the cryptocurrency market, ensuring consumer protection and clarity for innovators.

  • What is the GENIUS Act's main requirement for stablecoins?

    The GENIUS Act mandates that stablecoins must be fully backed by U.S. dollars or highly liquid assets and requires annual audits for large issuers.

  • How does the anti-CBDC Surveillance State Act affect the Federal Reserve?

    This act prevents the Federal Reserve from directly issuing a central bank digital currency to individuals without congressional approval.