WASHINGTON – The U.S. House of Representatives on Thursday passed three landmark cryptocurrency bills, fulfilling a significant commitment from the Trump administration to the burgeoning digital asset industry. These legislative victories aim to establish clearer regulatory frameworks, codify the use of stablecoins, and block the issuance of a central bank digital currency, marking a pivotal moment for crypto in American finance.
CLARITY Act: Towards a Clearer Regulatory Framework
Lawmakers easily approved the Digital Asset Market Clarity Act (CLARITY Act) with strong bipartisan support, 294-134. This bill is designed to bring much-needed clarity to industry rules by clearly delineating regulatory authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It seeks to define what constitutes a digital commodity versus a security, thereby providing a more predictable environment for crypto innovation. The CLARITY Act will now advance to the Senate, where Republicans hold a slim majority.
GENIUS Act: Codifying Stablecoins
The House also readily passed the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) by a vote of 308-122. This crucial piece of legislation codifies the use of stablecoins, cryptocurrencies pegged to stable assets like the U.S. dollar or U.S. bonds. The Senate had already passed the GENIUS Act last month, and it is now expected to go directly to President Trump for his signature to become law. The bill sets essential requirements for stablecoin issuers, mandating that they hold reserves of assets equal in value to their outstanding cryptocurrency, ensuring stability and consumer protection. Senator Bill Hagerty, the measure’s sponsor in the Senate, hailed it as “historic legislation” that will “bring our payment system into the 21st century” and “ensure the dominance of the US dollar.”
Anti-CBDC Surveillance State Act: Protecting Privacy
In a largely partisan vote of 219-210, the Republican-led House also passed the Anti-CBDC Surveillance State Act. This bill aims to block the issuance of a central bank digital currency (CBDC), often referred to as a “digital dollar,” by the U.S. Federal Reserve. Republicans argue that a government-issued CBDC could enable the federal government to monitor, track, and potentially control private citizens’ financial transactions, thereby undermining privacy and civil liberties, even though the Fed currently has no concrete plans for such an endeavour. While this bill reflects a strong ideological stance, its passage in the Senate is far from guaranteed. An earlier attempt to advance this bill caused a significant stir among a small group of Republicans, delaying the passage of the other two bills until eleventh-hour lobbying by President Trump helped resolve the issue.
Trump’s Crypto Agenda and Financial Interests
This wave of legislation follows years of scepticism towards crypto, but President Trump has notably reversed his previous doubts about the industry. After crypto investors contributed millions of dollars to his presidential campaign last year, Trump has become a vocal supporter, launching a Trump meme coin and other ventures. Forbes magazine estimates that his foray into the crypto business has doubled his wealth to $5.3 billion in just one year.
Since taking office, Trump has made several moves to support the crypto sector, including appointing crypto advocate Paul Atkins to lead the SEC and establishing a federal “Strategic Bitcoin Reserve” to audit the government’s Bitcoin holdings. Furthermore, according to the Financial Times, Trump is now preparing an executive order to open the $9 trillion U.S. retirement market (401k plans) to cryptocurrency investments, as well as gold and private equity, signalling a radical shift in how Americans’ savings could be managed. The bipartisan support garnered by the CLARITY Act and GENIUS Act reflects the increasing lobbying and contributions from the crypto industry to both Republican and Democratic lawmakers.
