This past “Crypto Week” in Washington D.C. has proven to be a watershed moment for the cryptocurrency industry. Despite initial procedural hurdles and internal Republican disagreements, three major crypto-related bills successfully cleared the House of Representatives on Thursday, marking a significant legislative victory for an industry that has rapidly become a potent force in both finance and politics.
The Key Bills That Passed
The legislative package that passed includes:
- The GENIUS Act: This bill, which had already cleared the Senate in June by a vote of 68-30, focuses on regulating “stablecoins.” These digital tokens are crucial for crypto markets, as their value is pegged to traditional currencies like the U.S. dollar, serving as a bridge between conventional and blockchain-based financial systems. The House passed the GENIUS Act with strong bipartisan support, 308-122, sending it to President Trump’s desk for signature. It is expected to be signed into law imminently.
- The Digital Asset Market Clarity Act (CLARITY Act): This is arguably the most significant piece of legislation for crypto advocates, as it aims to establish a comprehensive regulatory framework for digital assets. The bill seeks to clarify oversight responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), providing much-needed regulatory certainty for the industry. The House passed the CLARITY Act by a vote of 294-134, and it now heads to the Senate for consideration.
- The Anti Central Bank Digital Currency Surveillance State Act: This bill is designed to prevent the Federal Reserve from issuing its own central bank digital currency (CBDC). While the Fed has shown little interest in developing a CBDC, proponents of this bill view it as a proactive measure against potential government surveillance and overreach in financial transactions. This bill passed by a narrower margin of 219-210, largely along party lines, and will also go to the Senate.
Industry Celebration vs. Critic Concerns
Crypto advocates are hailing these legislative successes as long overdue “rules of the road” that will foster innovation, democratize finance, and protect American investors. Mason Lynaugh, Community Director for advocacy group Stand With Crypto, emphasized that these votes bring the U.S. “one step closer to a common-sense regulatory framework” and urged swift Senate action to “solidify America’s global leadership in the blockchain economy.”
However, critics remain wary. Democratic Representative Maxine Waters, in an MSNBC op-ed, argued that the bills “wrap themselves in the flag of innovation, but all they really do is replicate the same mess that led to past financial crises.” She also pointed out that the bills offer few regulations and place no checks on President Trump’s ability to profit from his family’s substantial crypto holdings, which include a stake in World Liberty Financial, a stablecoin project.
Law professor Hilary Allen, a vocal critic of the industry, warned that the legislation, largely “written by and for the industry,” could expose mainstream finance, including 401(k) retirement plans, to a speculative digital financial system that few fully understand. She compared the potential outcome to the “Wildcat banking era” of the mid-1800s, where unregulated state-chartered lenders issued their own money, often leading to worthless notes for customers. Allen specifically highlighted concerns that the GENIUS Act could enable companies like Walmart, Meta, or Amazon to function as unregulated banks by issuing their own stablecoins, potentially creating “too big to fail” tech companies that taxpayers might eventually have to bail out.
The Powerful Influence of Crypto Lobbying
The crypto industry’s legislative successes are undeniably tied to its immense financial and political influence. Bitcoin’s price topping $120,000 for the first time this week, doubling in value over the past year, underscores the vast capital flowing into the sector. This money has translated into unprecedented lobbying power.
According to a report from the nonprofit watchdog Public Citizen, crypto firms eclipsed all other industries in political spending in the 2024 general election. Nearly half (44%) of all corporate money contributed in that election came from crypto backers. Fairshake, a crypto Super PAC, revealed it has over $140 million in the bank for the upcoming midterm election season, building on the $131 million it and its affiliated PACs poured into congressional races in 2024 to elect dozens of pro-crypto lawmakers. This spending included a significant $40 million effort to unseat Ohio Senator Sherrod Brown, a known crypto skeptic who oversaw the Senate Banking Committee. In comparison, the privately held Koch Industries, a traditionally large political spender, contributed $25 million to its Americans for Prosperity Action and $3.25 million to Republican congressional candidates last year, a distant second to crypto’s spending. Independent journalist Molly White of Bluesky noted the timing of Fairshake’s announcement during “Crypto Week,” suggesting a coercive message: “Pass our bills, or we will spend millions against you in the midterms.”
The outcome of this “Crypto Week” signifies a critical turning point. While advocates envision a future of financial innovation and leadership, critics warn of potential systemic risks and the normalization of a largely unregulated financial system, raising questions about consumer protection and financial stability.
