Key Takeaways:
- Stablecoin Standardization: GENIUS Act brings U.S. rules in line with the EU’s MiCA
- Regulatory Clarity: Ends SEC’s “regulation by enforcement” approach
- Political Realignment: Crypto emerges as a rare bipartisan issue
- Market Impact: Legitimization could funnel billions into compliant projects
A Historical Moment for Crypto
In an unprecedented political turnaround, the U.S. House of Republicans passed the GENIUS Act with almost unanimous support of 308-122, creating the first comprehensive stablecoin framework in the U.S. The bill will now go to the desk of President Trump for signing, bringing to fruition the years-long quest from industry stakeholders for regulatory certainty.
In addition to two other bills – the companion CLARITY Act (294-134) that defines crypto securities/commodities and an anti-central bank digital currency (CBDC) bill, this legislative card shows the biggest shift in crypto policy since the creation of Bitcoin. Most notably, these votes took place after what turned out to be a good old-fashioned lobbying blitz from the crypto industry, which invested approximately $119 million in the 2024 elections. Trump personally benefited from his pro-crypto policies and some personal token offerings, such as the World Liberty Token, which is soon to be tradable.
What the Bills Actually Do
1. GENIUS Act
- Mandates 100% reserve backing for stablecoins (cash/T-bills)
- Requires monthly attestations of reserves
- Grants state/Federal regulators shared oversight
2. CLARITY Act
- Divides crypto oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)
- Exempts certain tokens from securities laws if sufficiently decentralized
3. Anti-CBDC Bill
- Bans the Federal Reserve (FED) from issuing a digital dollar (best bill for sure)
- Framed as protecting financial privacy against government surveillance
Why This Changes Everything
For Crypto Businesses:
✅ After years of uncertainty, clear stablecoin regulations have been established for Coinbase, Circle, and other digital coin issuers.
✅ Token projects escape SEC “regulation by enforcement” purgatory
For Traditional Finance:
🏦 Banks like JPMorgan can now issue compliant stablecoins. Already happening.
💼 $9T retirement market may soon access crypto (per Trump admin plans)
For Markets:
📈 Bitcoin surged 3% post-vote to $121,400 as institutional fears eased
💵 Stablecoin issuers must now compete on transparency, not just yields
The Political Firestorm
It looks like the Democrats are deeply split on this. Even though 102 House Dems backed the GENIUS Act, some, like Rep. Maxine Waters, are calling it a “full-scale crypto con.” She’s saying it mostly helps Trump’s own stuff, like his $TRUMP memecoin and World Liberty Financial stablecoin.
But even with all the internal disagreements, “This train has left the station.” With Trump likely signing the CLARITY Act and the Senate possibly fast-tracking it, crypto’s sway in Washington seems almost a done deal.
What Comes Next
- Immediate: GENIUS Act implementation begins within 90 days of signing
- 2025: SEC/CFTC turf war over token classifications intensifies
- Long-term: Global stablecoin dominance tilts toward U.S.-regulated issuers
Final Thought: When the U.S. President owns crypto, Congress passes pro-crypto laws, and Wall Street adopts blockchain, is this financial innovation… or the world’s most disruptive lobbying campaign? The crypto industry just bought itself a seat at the adult table, but is that actually good? What happened with the “crypto philosophy”?
For more crypto-related stories, read: Bitcoin vs. Ethereum: Who Will Dominate in H2 2025?
