On 17/7, the US House of Representatives passed the Genius Act, a bill to create a legal framework for stablecoins pegged to the US dollar. This marks a milestone for the digital asset industry after years of pushing for federal regulation.
The bill will now go to former President Donald Trump, who is expected to sign it into law.
The House also passed two other cryptocurrency bills to be considered by the Senate: the Clarity Act, which creates a legal framework for cryptocurrencies, and a bill prohibiting the US from issuing a central bank digital currency. Both the Genius Act and the Clarity Act have received bipartisan support.
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The US cryptocurrency industry has just witnessed a new turning point. Photo: Reuters |
The US cryptocurrency industry has just witnessed a new turning point. Photo: Reuters
Stablecoins are cryptocurrencies developed on a blockchain designed to maintain price stability by being pegged to the value of fiat currencies. In recent years, their use in cryptocurrency transactions has grown, allowing users to quickly convert between different tokens.
If signed into law, the Genius Act will require these tokens to be backed by highly liquid assets, such as USD or short-term US government bonds. Issuing organizations must also publicly disclose the composition of these reserve assets monthly.
Summer Mersinger, head of the American Crypto Association, called the House's decision on 17/7 a "turning point in the development of digital asset policy in the US". The cryptocurrency industry has long advocated for congressional legislation to regulate digital assets. They believe a clear legal framework will facilitate wider adoption of stablecoins and other tokens. In 2024, businesses and individuals in the industry spent over $119 million in election campaigns supporting pro-cryptocurrency candidates.
Last year, the US House also passed a stablecoin bill, which was not considered by the Senate. Recently, former President Trump has sought to overhaul US cryptocurrency policy after garnering support from the industry during his presidential campaign.
Congressional tensions surrounding Trump's cryptocurrency activities had threatened the industry's hopes for legislation this year. Democratic lawmakers have increasingly criticized Trump and his family members for promoting personal cryptocurrency projects.
In January, Trump launched a memecoin called TRUMP. He also has a stake in the World Liberty Financial cryptocurrency project. The White House, however, has stated there are no conflicts of interest as Trump's assets are managed by a trust fund headed by his children.
The Clarity Act will define when a cryptocurrency is considered a security or a commodity, clarifying the Securities and Exchange Commission’s (SEC) jurisdiction over the sector. This has been a point of contention for cryptocurrency companies during former President Joe Biden’s term. They argue that most tokens should be classified as commodities rather than securities, allowing platforms to offer them to users without having to comply with numerous securities regulations.
This bill will go to the US Senate for a vote before being sent to the president. Some Democratic lawmakers strongly oppose the Clarity Act, viewing it as a way to support Trump's cryptocurrency ventures.
Regarding the bill prohibiting a central bank digital currency (CBDC), Republican lawmakers argue it would infringe on Americans' privacy rights. This issue was a major sticking point in House discussions last week.
Ha Thu (Reuters)
