Congress Passes Landmark Crypto Bills, Ushering in New Era of Digital Asset Regulation

On July 18, President Donald Trump hosted a formal signing ceremony for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, known as the GENIUS Act, which had recently passed the House of Representatives with strong bipartisan backing. The final vote tally stood at 308 to 122, reflecting widespread support across party lines. According to a statement issued following the event, the legislation had already cleared the Senate earlier in June.

The GENIUS Act introduces a comprehensive regulatory framework for issuers of U.S. dollar-backed stablecoins, with oversight responsibilities divided between federal and state authorities. Per a statement from the White House, the measure is considered a cornerstone of the administration’s strategy to position the United States as a leader in digital financial infrastructure.

“The Genius Act creates a clear and simple regulatory framework to establish and unleash the immense promise of dollar-backed stablecoins,” said President Trump during the signing ceremony.

Industry stakeholders were quick to express support for the bill. Coinbase CEO Brian Armstrong praised the legislation’s potential to enhance market confidence, while the head of the Crypto Council for Innovation called the law’s passage a “watershed moment” for the sector.

Per a statement from the Treasury Department, federal agencies such as the Office of the Comptroller of the Currency (OCC) and the Federal Reserve Board are now tasked with drafting the necessary implementing regulations. These rules must be finalized within the next year, with the law requiring that any new regulations take effect within 120 days of their completion—placing full implementation of the act on track for early 2027.

The financial industry has been watching these developments closely. Major U.S. banks, including JP Morgan, Bank of America, Goldman Sachs, and Citigroup, have reportedly welcomed the move, anticipating that regulatory clarity will allow them to participate more confidently in the expanding stablecoin space.

Related: House Votes to Pass CLARITY Act After Drama Threatened to Derail Crypto Market Structure Bill

Meanwhile, the House of Representatives continued its legislative push on digital assets by passing the Digital Market Clarity (CLARITY) Act on July 17. The bill seeks to define the legal status of various cryptoassets and to delineate the regulatory responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). According to a statement from congressional leaders, the goal is to bring coherence and predictability to an area that has been marked by regulatory uncertainty.

The CLARITY Act now heads to the Senate, where it is expected to encounter tougher scrutiny. Although some Senate Democrats supported the GENIUS Act, they have expressed reservations about the new bill—particularly regarding potential conflicts of interest involving the President and whether the proposed consumer protections are adequate.

Nonetheless, per a statement from Senate Majority leadership, there is optimism that the bill will pass before the end of the current fiscal quarter, with a target date set for September 30. A successful passage would further solidify the United States’ emerging leadership role in global crypto regulation.

Notably, the path to passage for both bills faced a temporary hurdle. Days before the votes, members of the House Freedom Caucus withheld support over concerns related to a separate bill addressing central bank digital currencies (CBDCs). According to a statement from congressional aides, the impasse was resolved through a late-night compromise on July 16, in which anti-CBDC provisions were folded into a forthcoming defense authorization package. This deal paved the way for floor votes on both the GENIUS and CLARITY Acts.

Source: Elliptic