US House Passes GENIUS Act: A Groundbreaking Step for Digital Asset Regulation
In a significant legislative move, the US House of Representatives has approved the GENIUS Act with a commanding bipartisan majority of 308–122, setting it up for a signature from President Donald Trump. This legislation aims to create a structured framework for stablecoins—digital currencies tied to traditional assets like the US dollar—while implementing crucial consumer protection measures and oversight for issuers.
In conjunction with the GENIUS Act, the House also passed two other pivotal bills related to digital assets. The Digital Asset Market Clarity Act, which secured a vote of 294–134, delineates regulatory responsibilities between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) while clarifying various categories of digital assets.
Additionally, the Anti-CBDC Surveillance State Act, which narrowly passed with a 219–210 vote, seeks to prevent the Federal Reserve from introducing a central bank digital currency (CBDC). Proponents of this bill argue that it safeguards citizens’ financial privacy.
The path leading to Thursday’s vote was tumultuous, marred by internal disputes among Republicans. Just days prior, a faction of conservative lawmakers obstructed the progress of these bills by blocking a crucial rule. This stalemate lasted nearly ten hours until an agreement was reached. The Anti-CBDC bill was subsequently amalgamated with the National Defense Authorisation Act, which encouraged the dissenting lawmakers to change their votes and enable the bills to advance.
Industry Reactions
The passage of the GENIUS Act has sparked optimism among industry advocates, who believe it sets a new standard for digital asset legislation and fosters confidence in the cryptocurrency market.
Andrew Forson, President of DeFi Technologies, stated, “The GENIUS Act unlocks broader adoption by traditional institutions and brings much-needed trust and transparency to the sector. This paves the way for compliant, bank-backed digital money and new solutions for corporate treasuries, helping to bridge the gap between innovation and investor protection.”
Echoing this sentiment, Summer Mersinger, CEO of the Blockchain Association, highlighted the importance of the legislation: “Congress has moved comprehensive legislation that provides enforceable, tailored rules for stablecoins—a foundational technology for the future of finance. This marks real momentum towards regulatory clarity that protects consumers, supports innovation, and reinforces the strength of the U.S. dollar in the digital economy.”
Criticism and Concerns
Despite the praise, the bill has drawn criticism from some Democratic lawmakers, including Representative Maxine Waters, who voiced concerns about potential corruption and foreign interference associated with the legislation. Waters specifically pointed to Trump’s increasing involvement in the cryptocurrency space. However, the White House has refuted claims of conflicting interests, asserting that Trump’s assets are held in a trust overseen by his children.
With the GENIUS Act awaiting the president’s signature, it stands to become the first federal law dedicated to the oversight of stablecoins in the United States, marking a notable milestone in the evolution of digital asset regulation.
In summary, the approval of the GENIUS Act represents a pivotal moment in US digital currency regulation, establishing a framework intended to promote consumer protection and clarity within the burgeoning cryptocurrency market.
