This week marked a notable turning point for the cryptocurrency landscape in the United States, as the House of Representatives advanced three crucial bills. Industry experts are hailing this as one of the most significant weeks in crypto policy recently.
The recently proposed legislation aims to reshape the crypto market structure, regulate stablecoins, and prevent the implementation of a government-issued digital currency. Collectively, these initiatives reflect a growing awareness and acceptance of the cryptocurrency sector among lawmakers.
Legislative Advances: CLARITY, GENIUS, and Anti-CBDC Bills
One major highlight was the passage of the Digital Asset Market Clarity (CLARITY) Act, which received bipartisan support in a vote of 294–134. This pivotal legislation seeks to clarify how different cryptocurrencies are categorized, determining whether they fall under the jurisdiction of the SEC as securities or the CFTC as commodities. The adoption of this bill is seen as a significant step toward better regulatory understanding for both investors and innovators in the crypto realm. However, it faced critiques from some lawmakers, including Representative Maxine Waters, who expressed concerns over potential loopholes that could jeopardize retail investor protections.
Simultaneously, the GENIUS (Guiding and Establishing National Innovation for US Stablecoins) Act received overwhelming support, passing with a vote of 308–122, following its earlier approval in the Senate with a 68–30 vote. This legislation establishes stringent requirements for stablecoin issuers, enforcing that tokens are fully backed by actual reserves, subject to monthly evaluations, and compliant with essential anti-money laundering practices. This landmark legislation was promptly signed into law by President Trump on July 18, marking a significant milestone in federal regulation concerning digital currencies.
In contrast, the Anti-CBDC Surveillance State Act, which sailed through with a much narrower margin of 219–210, has stirred debate. This bill aims to inhibit the Federal Reserve from launching a central bank digital currency, with supporters arguing that it would enhance governmental surveillance over individual financial activities. Critics, however, highlight the risks associated with hindering the Fed’s ability to adapt to global banking trends, especially as nations like China make strides with their own digital currencies.
The Path Ahead
Currently, the GENIUS Act regulating stablecoins is already in action. Nonetheless, the fortunes of the CLARITY Act and the Anti-CBDC bill now rest with the Senate, where deliberations may be more cautious. Intriguingly, the voting patterns in the House suggest that numerous Democratic representatives are taking a favorable stance toward the cryptocurrency market.
In fact, more than 100 Democrats supported the GENIUS Act, while 78 lent their approval to the CLARITY Act. As the Senate prepares to reconvene, a rigorous examination of these bills is expected, though optimism remains that they will likely pass smoothly.
The market reactions to these legislative developments have been mixed; Bitcoin continues to trade at around $118,000, showing signs of steady growth. Meanwhile, Ethereum briefly reached $3,670 but has settled back to approximately $3,500, indicating mixed sentiment among investors.
