U.S. Advances Stablecoin Oversight with Genius Act Approval
American flag outside the U.S. Capitol
In a major step forward for the digital asset space, the U.S. House of Representatives on Thursday approved a bill that would establish a federal regulatory framework for stablecoins—cryptocurrencies pegged to the U.S. dollar. The bill, called the Genius Act, now heads to President Donald Trump’s desk, where it’s widely expected to be signed into law.
This moment marks a pivotal shift in how Washington approaches digital currencies. The crypto industry, which has lobbied heavily for clear rules, spent over $119 million supporting pro-crypto candidates in the last election cycle. Their efforts appear to be paying off, as lawmakers from both parties showed support for Thursday’s legislation.
Alongside the stablecoin bill, the House also passed two other key pieces of crypto legislation. One is the Clarity Act, which aims to clearly define how crypto tokens are regulated—whether as securities or commodities—and the other bill would outright ban the development of a central bank digital currency (CBDC) in the U.S. Both of these bills are now headed to the Senate for further debate.
Speaker of the House Mike Johnson
The Genius Act received strong bipartisan backing, passing by a vote of 308-122. It would require stablecoin issuers to back their tokens with highly liquid assets such as U.S. dollars or short-term Treasury bills. Issuers would also need to publicly disclose the makeup of their reserves on a monthly basis—a move supporters say brings much-needed transparency to a fast-growing sector.
Stablecoins have become a staple in crypto markets, often serving as a bridge between different digital assets. Advocates say they could revolutionize payments, enabling near-instant transfers around the world.
Summer Mersinger, head of the Blockchain Association and former CFTC official, called the vote a “defining moment” in the evolution of digital asset policy in the United States.
The broader Clarity Act, which passed the House 294-134, takes aim at a long-standing source of confusion in crypto regulation: whether digital tokens should be treated as securities under the SEC or commodities under the CFTC. Industry leaders have long argued that most tokens function more like commodities, which would mean less regulatory red tape and easier access to markets.
President Trump
However, some Democrats raised concerns that the bill might open the door to weak oversight, especially given former President Trump’s deepening ties to the crypto world. Trump has recently launched a meme token called $TRUMP and co-founded a crypto business, World Liberty Financial, raising eyebrows among critics who warn of potential conflicts of interest.
Despite these concerns, the White House has stated there are no ethical issues, noting Trump’s assets are in a trust managed by his children.
The third bill passed this week would prevent the U.S. government from issuing a central bank digital currency, citing potential threats to personal privacy. Republicans in particular have voiced opposition to the idea of a CBDC, suggesting it could be misused for surveillance or control.
While the Genius Act is expected to become law soon, the Clarity Act and CBDC ban still face scrutiny in the Senate. Nonetheless, the momentum suggests a new era of federal crypto regulation may be on the horizon.
