US Crypto Bills Push Digital Assets Closer to Mainstream Finance
The cryptocurrency sector is nearing a major breakthrough as several pro-crypto bills progress through the US Congress. This week, the House of Representatives is expected to pass key pieces of legislation that could integrate digital assets more deeply into traditional finance.
House Focuses on Stablecoin and Market Structure Laws
In what Republicans are calling “crypto week”, lawmakers will vote on bills designed to regulate stablecoins and define how cryptocurrencies are classified under US law. The most significant is the GENIUS Act, which sets federal standards for stablecoins.
Stablecoins are digital currencies that aim to maintain a fixed value, typically pegged to the US dollar. They are widely used to transfer funds between cryptocurrencies. The GENIUS Act requires stablecoins to be backed by liquid assets like cash or Treasury bills. Issuers must also disclose their reserves monthly.
Supporters believe the law could legitimise stablecoins, encouraging banks, retailers, and consumers to adopt them for everyday payments. Julia Demidova of financial firm FIS noted that companies are already considering how to use stablecoins within their businesses.
Despite bipartisan support, some Democrats remain cautious. They argue the GENIUS Act lacks protections against private stablecoins issued by large tech companies. They are also pushing for stronger anti-money laundering rules and restrictions on foreign stablecoin issuers. Several amendments are expected to be proposed.
CLARITY Act and Crypto Market Oversight
Another key bill is the CLARITY Act. This proposed law would define when a cryptocurrency is a commodity or a security, helping companies understand whether they fall under the jurisdiction of the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).
Crypto firms favour being classified as commodities to avoid SEC oversight, which they argue has been too aggressive under the Biden administration. The CLARITY Act would expand the CFTC’s regulatory powers and create a clearer framework for digital assets.
Like the GENIUS Act, the CLARITY Act is seen as a victory for the industry. It follows extensive lobbying, with crypto firms spending over $119 million to support pro-crypto candidates in recent elections.
Political Debates and Trump’s Role
The stablecoin and CLARITY bills are expected to pass the House but face uncertainty in the Senate. Former President Donald Trump, who has received significant donations from the crypto sector, is likely to sign the GENIUS Act if it reaches his desk.
Trump has personal ties to the crypto industry. His ventures include a meme coin named $TRUMP and a crypto company called World Liberty Financial. While critics highlight potential conflicts of interest, the White House insists Trump’s assets are held in a trust managed by his children.
The House will also vote on a bill to block the creation of a US central bank digital currency (CBDC), citing privacy concerns. However, the Federal Reserve has not shown interest in launching a CBDC.
with inputs from Reuters