As lawmakers in Washington enter a pivotal ‘Crypto Week’, three key bills could shape the future of stablecoins, digital asset oversight, and the role of central bank digital currencies in the US payments ecosystem. Here’s what you need to know.
A critical week for US digital asset legislation is underway, with lawmakers in Washington set to debate and vote on three significant bills that could reshape the country’s regulatory approach to cryptocurrencies and central bank digital currencies (CBDCs).
Dubbed ‘Crypto Week’ by lawmakers, the House of Representatives will consider the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance State Act.
Together, these bills aim to define clearer regulatory boundaries for stablecoins and digital asset markets, while also limiting the Federal Reserve’s role in issuing a digital dollar.
The outcomes could have far-reaching implications for how digital currencies are issued, overseen, and integrated into the broader US financial system. Below, we outline what each bill proposes, who is backing or opposing them, and what’s at stake for payment providers and financial institutions watching from the sidelines.
1. The GENIUS Act
Full title: Guiding and Establishing National Innovation for U.S. Stablecoins Act
Bill number: H.R. 3403
Status: Passed the Senate (June 17, 2025), under House consideration during Crypto Week
Primary sponsors: Senators Kirsten Gillibrand (D-NY) and Cynthia Lummis (R-WY)
Key provisions:
The GENIUS Act proposes the first federal framework for regulating payment stablecoins, digital tokens pegged to fiat currencies and used for payments. Among its central provisions are:
- Stablecoin issuer registration: Requires stablecoin issuers to register with federal or state banking regulators.
- Reserves and disclosures: Mandates that issuers hold 100% reserves in US dollars or US Treasuries and provide regular public disclosures.
- Ban on algorithmic stablecoins: Prohibits the issuance of unbacked algorithmic stablecoins for two years, pending further study.
- Interoperability and settlement: Encourages technical interoperability between stablecoins and traditional payment systems.
Supporters: The GENIUS Act has received backing from both Democratic and Republican lawmakers, reflecting a bipartisan desire to bring clarity to the stablecoin ecosystem. Industry groups such as the Blockchain Association and payments firms including Circle (issuer of USDC) have also expressed support, citing the need for regulatory certainty to unlock further adoption of dollar-backed stablecoins.
Critics: Some state regulators have raised concerns that the Act could pre-empt existing state-level stablecoin frameworks, particularly those in New York and Texas. Civil liberties groups have also flagged risks of overregulation potentially hindering innovation or access to decentralised alternatives.
Regulatory implications: If enacted, the GENIUS Act would mark a pivotal shift in US stablecoin policy, effectively recognising fiat-backed stablecoins as legitimate digital payment instruments.
It would create a federal layer of oversight above a currently fragmented state-led regulatory landscape and could accelerate institutional adoption of stablecoin-based settlement tools in B2B and cross-border payments.
2. The CLARITY Act
Full title: Crypto Legal Clarity Act of 2025
Status: Advanced through committee stages; expected to be debated and voted on in the House during Crypto Week
Primary sponsors: Representatives French Hill (R-AR) and Dusty Johnson (R-SD), among others
Key provisions: The CLARITY Act seeks to define the regulatory responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in relation to digital assets. Its primary objective is to distinguish between when a crypto asset is treated as a security or a commodity, thereby reducing ambiguity in enforcement.
Notable provisions include:
- Functional test for digital assets: Introduces a new test to determine whether a digital token functions more like a security or a commodity based on its use case and decentralisation.
- Pathways for compliance: Allows token issuers to register with either the SEC or CFTC, depending on classification, with the potential to transition from one regime to another.
- Safe harbour provisions: Offers limited liability for developers and issuers who attempt in good faith to comply with federal registration processes.
Supporters: The bill is supported by a coalition of Republican lawmakers and several blockchain advocacy groups, including the Chamber of Digital Commerce and the Crypto Council for Innovation. Proponents argue that the Act provides much-needed legal certainty for digital asset developers and trading platforms, especially in light of recent high-profile enforcement actions by the SEC.
Critics: The CLARITY Act has faced opposition from some Democratic members of the House Financial Services Committee, who argue that it could weaken investor protections and limit the SEC’s authority. SEC Chair Gary Gensler has publicly opposed prior versions of similar legislation, asserting that most crypto tokens already qualify as securities under existing law.
Regulatory implications: Passage of the CLARITY Act would establish a dual-track regulatory regime for digital assets in the United States, effectively creating legal distinctions between investment-oriented tokens and those used for payments or utility.
For payment firms, the Act may streamline compliance obligations when dealing with tokenised assets, though practical implementation will depend heavily on how the SEC and CFTC interpret their expanded roles.
3. The Anti-CBDC Surveillance State Act
Full title: CBDC Anti-Surveillance State Act
Bill number: H.R. 1122
Status: Scheduled for House vote during Crypto Week
Primary sponsor: Representative Tom Emmer (R-MN)
Key provisions: This bill proposes to restrict the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals or engaging in any pilot projects without congressional authorisation. Key aspects include:
- Ban on direct Fed-issued retail CBDC: Prohibits the Federal Reserve from offering accounts or digital wallets directly to US citizens.
- Prevention of surveillance tools: Blocks the Fed from using a CBDC to track personal transactions or financial behaviour.
- Congressional oversight clause: Requires explicit congressional approval for any future CBDC implementation.
Supporters: The bill has been championed by a group of Republican lawmakers who express concerns over civil liberties and the potential for “government surveillance” through digital currencies. Supporters argue that the legislation protects consumer privacy and the role of commercial banks in the financial system. The bill is also supported by digital rights groups such as the Blockchain Association and the Heritage Foundation.
Critics: Opponents of the bill argue that it could stifle innovation and limit the US’ ability to compete internationally in the development of digital public infrastructure. Democratic lawmakers on the House Financial Services Committee have argued that rather than banning CBDCs outright, Congress should consider pilot programs and a framework for public input. Federal Reserve Chair Jerome Powell has stated that no CBDC would be launched without legislative authorisation, but has expressed interest in exploring its potential under a privacy-respecting framework.
Regulatory implications: If passed, the Anti-CBDC Surveillance State Act would impose significant constraints on the Federal Reserve’s digital currency research and development, potentially delaying or halting any rollout of a digital dollar.
For the payments industry, this may preserve the status quo of private-sector-led innovation in digital settlement systems—but also limit public-sector initiatives aimed at modernising cross-border payments or expanding financial access.
Reaching a turning point?
Crypto Week in Congress marks one of the most concerted legislative efforts yet to define the future of digital assets and digital money in the United States.
Each bill addresses a different aspect of the emerging ecosystem: private stablecoins, the classification of digital assets, and the government’s role in issuing digital currency.
While the outcomes remain uncertain, the combined debate signals growing momentum in Washington to establish a more coherent regulatory framework for digital payments.
