After nearly 10 hours of deliberation, the US is one step closer to establishing a regulated framework for cryptocurrencies and stablecoins.
The US House of Representatives voted to advance the GENIUS and CLARITY Acts, setting them up for a potential full vote in the House as early as July 18.
Both bills have gained momentum following the addition of provisions aimed at blocking the introduction of a central bank digital currency (CBDC) in the US.
The vote passed narrowly, with 217 Republicans in favour and 212 Democrats opposed, following nearly 10 hours of debate. Earlier in the week, a faction of GOP representatives had initially stalled the process, but were persuaded to support the measures after holding private meetings with President Donald Trump.
Many Republicans, including Trump himself, have publicly opposed a digital dollar citing concerns over government surveillance and financial privacy. These objections culminated in the introduction of the Anti-CBDC Surveillance Act, which was incorporated in the National Defense Authorisation Act (NDAA) on July 16.
“Attaching our Anti-CBDC Surveillance State Act to the NDAA will ensure unelected bureaucrats are NEVER allowed to trade Americans’ financial privacy for a CCP-style surveillance tool,” said the Majority Whip of the US House of Representative, Tom Emmer in a statement on X.
“(President Trump) has made it clear: our legislation is a key piece of our America First agenda, and we will deliver.”
Much needed CLARITY
The new law is designed to work in tandem with the CLARITY Act, the overarching bill which aims to establish a formal regulatory framework for the US crypto sector.
A central feature of the Act is its provision to classify digital assets as either securities or commodities, determining whether oversight falls under the jurisdiction of the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC) – a longstanding point of contention between both government agencies.
If passed in the final House vote, the CLARITY Act could mark a significant breakthrough for US-based crypto companies, many of which have spent years challenging the SEC’s enforcement-first approach under the previous Democratic administration.
However, it remains uncertain whether firms like Coinbase and Binance, which have previously clashed with the SEC over securities classifications, will face the same regulatory challenges if the Act retains the SEC’s existing interpretations.
The stablecoin impact of the GENIUS Act
While the CLARITY Act is expected to bring long-awaited regulatory clarity to the crypto sector, its companion legislation, the GENIUS Act, focuses on supporting blockchain and AI innovation and establishing a robust framework for stablecoin growth.
The GENIUS Act passed a Senate vote in June 2025 and was one of the first digital asset bills to gain majority support among Republicans, despite some initial resistance from Democrats earlier in May.
During the House proceedings on July16, the bill remained largely unchanged, signalling a clear path forward for it to be signed into law by President Trump.
Senate approves GENIUS Act – Payment Expert, June 18
At its core, the GENIUS Act sets clear parameters for stablecoin issuers. It allows for authorisation of issuers from three categories:
- Subsidiaries of insured depository institutions;
Non-bank entities approved by a federal regulator; - State-qualified issuers, provided their home state meets federal equivalency standards.
All issuers must maintain 1:1 reserves backed by highly liquid, safe assets. These include US coins and currency, Treasury bills maturing within 93 days, short-term repurchase agreements, and demand deposits held at insured institutions.
Transparency is also mandated. Issuers must:
- Publicly disclose reserve composition on a monthly basis;
- Detail redemption terms;
- Certify reports through both the CEO and CFO, with mandatory external audits.
The progress of the GENIUS Act has already triggered renewed interest from major US banks in issuing their own native stablecoins. On a 15 July earnings call, Citi CEO Jane Fraser confirmed the bank is actively exploring the opportunity, citing the Act’s advancement as a pivotal factor.
“We really welcome the administration’s willingness to allow banks to participate in the digital asset space more easily,” said Fraser.
For institutions like Citi, the GENIUS Act could unlock faster cross-border settlements, improved interoperability between fiat and digital currencies, and broader payment flexibility for clients.
