Summary
- The House approved the GENIUS Act, establishing the
first federal stablecoin regulatory framework. - President Trump signed the GENIUS Act on July 18, 2025.
- The Act mandates 1:1 reserve backing and monthly
audited disclosures for stablecoins. - Creates dual federal-state licensing system based on
issuer size and regulation. - The bill aims to protect consumers, ensure
transparency, and maintain U.S. dollar dominance.
Two GOP-led legislation pertaining to digital
assets were approved by the U.S. House of Representatives on July 17. The
president signed one of the proposals into law on July 18, while the other bill
will now be considered by the U.S. Senate.
The Guiding and Establishing National Innovation
for U.S. Stablecoins (GENIUS) Act, S. 1582, was approved by the House 308-122
and signed into law by Trump the following day.
U.S. Senator Bill Hagerty (R-TN) presented S.
1582 on May 1st, which creates a legislative framework for payment stablecoins—digital assets
that an issuer is required to redeem for a certain amount.
“This legislation protects consumers, cements
the U.S. dollar as the world’s reserve currency, and promotes the next
generation of Web3 businesses here in the United States,”
said U.S. Rep. Bryan
Steil (R-WI), who voted to pass the S. 1582.
“By securing U.S. leadership in
blockchain technology, we ensure that our economy will continue to dominate the
financial services sector for years to come.”
The bill states that, with some exclusions and
safe harbors, only authorized issuers are allowed to create payment stablecoins
for use by Americans. Permitted issuers have to be either state-qualified
payment stablecoin issuers, federal-qualified nonbank payment stablecoin
issuers, or subsidiaries of insured depository institutions.
The relevant federal or state authority must
oversee permitted issuers. According to the Congressional Record bill summary,
authorized issuers have the option of either federal or state regulation;
however, state regulation is only available to those with a stablecoin issuance
of $10 billion or less.
S. 1582, according to Rep. Steil, is the outcome
of months of cooperation between the Senate and House on stablecoin
legislation.
The STABLE Act, the House companion measure to
S. 1582, was presented in March after he and U.S. House Financial Services
Chairman French Hill (R-AR) introduced a discussion draft in February that
established a framework for the creation and operation of dollar-denominated
payment stablecoins in the United States.
“President Trump’s signature on the GENIUS Act
marks the turning point in years of collaboration between Congress, the
Executive Branch, and stakeholders,”
Rep. Hill said.
“This is a historic day
for American innovation and consumer protection as payment stablecoin legislation
is now law.
Our efforts don’t stop here, and I’ll continue
to work with President Trump and the Senate to ensure critical market structure
legislation will reach the president’s desk,”
he added.
Rep. Hill’s bipartisan Digital Asset Market Clarity
Act of 2025, also known as the CLARITY Act of 2025, H.R. 3633, was also
approved by the House last week by a vote of 294–134. The bill would create a
regulatory framework for digital commodities, which the bill defines as digital
assets that depend on a blockchain to be valuable.
Along with eight original cosponsors, including
U.S. Representatives Glenn “GT” Thompson (R-PA), Tom Emmer (R-MN), Dusty
Johnson (R-SD), and Angie Craig (D-MN), as well as Rep. Hill, H.R. 3633 was
sponsored on May 29. If yearly sales are below a specific threshold and other
conditions are satisfied, the bill would exclude digital commodities on
established blockchains (as well as those on blockchains anticipated to develop
within specific periods) from Securities and Exchange Commission (SEC)
registration requirements.
According to the Congressional Record bill
description, the plan would also provide the SEC authority over transactions
and activities involving digital commodities that are carried out by national
securities exchanges and by specific brokers and dealers on alternative trading
platforms.
“The House passed landmark legislation that
establishes clear rules of the road by creating a functional regulatory
framework for digital assets,”
Rep. Hill said.
“This is the pivotal moment for
American innovation and a critical step forward in protecting consumers and
investors alike.”
Rep. Johnson pointed out that if America doesn’t
lead in digital asset development, the nation risks losing innovation to Europe
or China.
“Our CLARITY Act puts in place a strong,
common-sense framework to give developers and consumers the certainty they need
to thrive in the United States,”
said Rep. Johnson.
“I’m grateful for the work
of my colleagues who helped get this bill across the finish line in the House
and I am hopeful the Senate acts soon.”
“This bill delivers on President Trump’s goal of
making the United States the crypto capital of the world by providing the
regulatory certainty needed to foster innovation, safeguard consumers, and
ensure America leads in the next generation of financial technology,”
added
Rep. Thompson.
What are the key aspects of the clarity act?
The Commodity Futures Trading Commission (CFTC)
will generally regulate digital commodity transactions, including exchanges,
brokers, and dealers .
Digital commodities on “mature
blockchains” may be exempt from Securities and Exchange Commission (SEC)
registration requirements under certain conditions. The SEC will retain
jurisdiction over digital commodity activities involving certain brokers,
dealers, and alternative trading systems .
Digital commodity exchanges, brokers, and
dealers will be subject to the Bank Secrecy Act for anti-money laundering
purposes .
The bill was sponsored by Rep. J. French Hill
(R-AR-2) and received bipartisan support in the House .
