The GENIUS Act and the CLARITY Act will be key for the United States to become a crypto hub.
The GENIUS Act guides and establishes the National Innovation Act for Stablecoins in the United States.
This act aims to establish a federal regulatory framework for stablecoins in the United States, promote the compliant development of the digital asset market, and ensure the dominance of the U.S. dollar in the global digital economy.
Its main objectives include:
1 Regulating stablecoin issuance: Requires stablecoins to be issued by entities approved by federal or state regulatory agencies, ensuring that issuers hold sufficient reserves corresponding to the stablecoins on a 1:1 basis (such as U.S. dollars, short-term government bonds, and other high-liquidity assets).
2 Prohibiting algorithmic stablecoins: Clearly prohibits algorithmic stablecoins that are not fully backed by assets to reduce market risk.
3 Enhancing the dollar's status: By regulating the stablecoin market, it promotes the U.S. dollar's position as the primary anchor currency for global digital assets, attracting institutional participation and enhancing the competitiveness of the U.S. in cross-border payments.
4 Reducing regulatory uncertainty: Provides a clear compliance path for stablecoin issuers, attracting fintech companies back to the U.S. market, fostering innovation, and protecting consumers.
5 Addressing potential risks: Tackles issues such as foreign issuers evading sanctions and money laundering, ensuring the safety and transparency of the stablecoin market.
The act was passed by the Senate on June 17, 2025, and by the House of Representatives on July 17, 2025, and is currently awaiting the President's signature to become law.
CLARITY Act
This act aims to provide regulatory clarity for the cryptocurrency market, addressing the long-standing regulatory gray areas in the cryptocurrency industry.
Its main objectives include:
1 Clarifying regulatory classification: Defines whether cryptocurrency assets are securities (regulated by the SEC) or commodities (regulated by the CFTC), reducing legal uncertainty and avoiding regulatory overlap or conflict.
2 Promoting innovation and protecting consumers: Establishes a clear regulatory framework for the cryptocurrency market, encouraging innovation while protecting consumers from fraud and market manipulation (such as 'pump and dump').
3 Simplifying compliance processes: Provides clear compliance guidelines for cryptocurrency projects, reducing legal risks arising from regulatory ambiguity and promoting healthy market development.
The act was passed by the House of Representatives on July 17, 2025, and has now been submitted to the Senate for review.
