Key Takeaways
- The GENIUS bill passed with 308 votes in favour, following strong bipartisan backing
- The House approved the Digital Asset Market Clarity (CLARITY) Act in a 294-134 vote and the Anti-CBDC Surveillance State Act by a narrower 219-210 margin.
In a significant developemnt, the U.S. House of Representatives on Thursday passed the GENIUS Act, officially sending the first-ever federal crypto law to the president for final approval. The bill passed with 308 votes in favor, following strong bipartisan backing. President Donald Trump is expected to sign the bill into law without delay.
Despite the delay, lawmakers returned to session Thursday and voted on three crypto-related bills. Along with the GENIUS Act, the House approved the Digital Asset Market Clarity (CLARITY) Act in a 294-134 vote and the Anti-CBDC Surveillance State Act by a narrower 219-210 margin. The CLARITY Act expands the Commodity Futures Trading Commission’s (CFTC) oversight role and outlines jurisdictional boundaries between it and the Securities and Exchange Commission (SEC).
The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act creates a federal regulatory framework for stablecoins. The bill requires all stablecoin issuers to hold 100% reserves, undergo regular audits, and register with either federal or state regulators. It also prohibits the issuance of unbacked algorithmic stablecoins.
The GENIUS Act includes a dual licensing model, giving oversight authority to both state and federal entities. This approach was designed to allow flexibility for existing state-regulated firms while introducing federal standards for newer issuers. The law will take effect in 2026, during which time agencies like the Federal Reserve and Office of the Comptroller of the Currency (OCC) are expected to issue detailed implementation guidelines.
The bill’s passage follows months of debate in Congress, especially among Republicans who were divided over federal involvement in digital assets. On Wednesday, voting on the bill was delayed for hours due to disagreements within the Republican circles cregarding language around central bank digital currencies (CBDCs). Some lawmakers pushed for stricter prohibitions on CBDC development, which they argued could allow for government surveillance of financial activity.
The GENIUS Act had already passed the Senate in June without amendments. Its advancement was a top legislative priority during the House’s “crypto week” initiative, which aimed to fast-track crypto legislation before the congressional August recess. More than 100 House Democrats supported the GENIUS Act, reflecting a rare moment of bipartisan agreement on digital asset policy.
