The House of Representatives passed two bills Thursday afternoon that will create regulatory frameworks for both cryptocurrencies and stablecoins. If the bills are enacted, it will be the first time digital assets are officially introduced into the United States financial system.
Both bills were passed on a strong bipartisan basis.
The GENIUS Act, which covers stablecoins that are directly tied to the value of assets like the U.S. dollar, now heads to President Donald Trump for his signature. The Clarity Act, which regulates payment cryptocurrencies and other digital assets, heads to the Senate, where lawmakers expect to make changes.
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What do the bills do?
The GENIUS Act
The bill creates a regulatory framework for stablecoins and companies seeking to become licensed stablecoin issuers.
It requires stablecoins to be backed at least one-to-one with reserves, such as the U.S. dollar, Treasury notes or bonds. Those reserves must be held in a regulated state or federal institution.
There are also protections against money laundering and national security threats. Issuers will need to monitor and report suspicious activity, comply with U.S. sanctions and block transactions that violate state and federal laws.
The legislation also clarifies that the U.S. government does not back payments in stablecoins and is not subject to deposit insurance from the Federal Deposit Insurance Corporation.
If the bill becomes law, it will be the first time digital currency is officially introduced into the U.S. financial system. Trump has signaled support for both measures.
“In the United States, stablecoins have operated in a legal gray zone. Stablecoin issuers trying to follow the rules can’t be sure what rules to follow,” Majority Leader John Thune, R-S.D., said.
Read the full bill here.
The Clarity Act
The legislation creates a system for digital commodity exchanges, brokers and dealers to register with the Commodity Futures Trading Commission (CFTC). The bill also outlines how those entities can maintain their status by keeping books and records open with the CFTC and making disclosures to customers about how they treat their assets.
In addition, the Clarity Act creates rules to ensure the blockchains that cryptocurrencies run on are properly decentralized, so no single entity runs them.
It splits the authority for overseeing cryptocurrencies and exchanges between the Securities and Exchange Commission and the CFTC. It also establishes a legal framework for individuals in the U.S. to have custody and make transactions with their digital assets lawfully.
It implements the same rules to protect against money laundering and national security threats as the GENIUS Act. Read the full bill here.
