The U.S. House of Representatives has just passed a series of groundbreaking bills aimed at establishing a federal legal framework for stablecoins and the digital asset industry in general.
Specifically, during the session on Thursday, the House voted to pass three bills:
Digital Asset Market Clarity Act
GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins)
Anti-CBDC Surveillance State Act
1. Clarity Act: Establish a comprehensive legal framework for the crypto industry
With a vote result of 294 in favor – 134 against, the Clarity Act was passed to create a clear legal framework for the entire digital asset industry in the U.S. This law defines the roles of the two main regulatory agencies – the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) – in overseeing digital assets.
In particular, crypto companies will have to:
Provide transparent financial information to individual investors;
Clearly separate company assets from customer assets.
The CEO of the Crypto Council for Innovation, Mr. Ji Hun Kim, called the passage of this law a 'major milestone,' stating:
"The Clarity Act has replaced ambiguity with confidence for entrepreneurs, markets, and consumers."
The Clarity Act is currently set to be moved to the Senate for further consideration. However, the Republican faction in the Senate is still drafting its own proposal with a deadline of September 30.
2. GENIUS Act: Bringing stablecoins into the framework
The GENIUS bill was passed with 308 votes in favor and 122 against. This bill has previously been passed by the Senate and is now almost certain to be signed into law by President Donald Trump later this week.
GENIUS Requirements:
Stablecoin must be fully backed 100% by USD or equivalent liquid assets;
Stablecoin issuing organizations with a market capitalization of over 50 billion USD must undergo annual audits;
Establish guidelines for the issuance of stablecoins from abroad.
Some lawmakers are concerned that GENIUS could become a 'backdoor' for the issuance of a digital USD, however, lawmakers have clearly stated: GENIUS does not allow the Federal Reserve (Fed) to issue CBDCs.
3. Anti-CBDC Act: Restrict the Fed's ability to issue digital currency
With a narrow margin of 219–210, the House passed the Anti-CBDC Surveillance State Act, prohibiting the Federal Reserve from issuing central bank digital currency (CBDC) directly to the public.
Fed Chair – Jerome Powell – had previously stated that a CBDC would not be issued without Congressional approval. This bill will now be incorporated into the Annual National Defense Authorization Act (NDAA) – a bill that must be passed.
Concerns from DeFi and the Democratic Party
Despite strong support from the crypto community, some individuals in the DeFi sector are concerned that the Clarity Act does not provide clear protections for decentralized exchanges (DEXs). While centralized exchanges will be registered at the federal level, DEXs may face a 'matrix' of separate regulations in each state.
Moreover, some Democratic Party members have strongly opposed the bills due to concerns that they facilitate President Trump in promoting personal digital asset interests. According to Bloomberg, the Trump family has earned about 620 million USD from crypto projects like World Liberty Financial, the memecoins TRUMP and MELANIA, as well as holding a 20% stake in the Bitcoin mining company American Bitcoin – which is expected to IPO.
Congresswoman Maxine Waters – the head of the Democratic faction in the House Financial Services Committee – referred to the two bills Clarity and GENIUS as:
"The two most dangerous bills ever presented to the House. This is a bow-wrapped gift for Trump to continue the large-scale cryptocurrency scam."
Conclusion
The U.S. House of Representatives' passage of three key bills for the crypto industry is an unprecedented milestone. If passed by the Senate and signed into law by the President, this will be the first federal legal framework for stablecoins and digital assets in the U.S. – laying the foundation for a new era of regulation and development of the legal crypto industry in the country.