U.S. House Passes Landmark Crypto Bills: GENIUS & CLARITY Acts Explained

Crypto Market at a Crossroads: U.S. House Advances Landmark Legislation Amid Volatility

A Rollercoaster Week for Crypto: From Legislative Gridlock to Breakthrough

In a dramatic turn of events, the U.S. House of Representatives has pushed forward three pivotal cryptocurrency bills after a grueling 10-hour negotiation session, marking a watershed moment for the digital asset industry. The bills—collectively dubbed the "Crypto Week" package—include the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins), the CLARITY Act (defining crypto asset classification), and a measure banning a Federal Reserve-issued central bank digital currency (CBDC).

The legislative breakthrough came after an initial procedural vote failed on July 16, with 13 Republican holdouts joining Democrats to block the package. However, following direct intervention from former President Donald Trump and intense GOP negotiations, the House narrowly passed the rule vote 217-212 on July 17, setting the stage for final approval.

Why This Legislation Matters

1. Stablecoin Regulation Takes Center Stage
   The GENIUS Act, already passed by the Senate, establishes the first federal framework for stablecoins—digital assets pegged to fiat currencies like the U.S. dollar. It mandates issuers to maintain full reserves (cash or short-term Treasuries) and disclose holdings monthly, aiming to boost transparency and trust in the $238 billion stablecoin market.

   Analysts predict this could trigger a wave of bank-issued stablecoins, breaking the current duopoly of Tether (USDT) and Circle (USDC). "We'll likely see a flood of new stablecoins entering the market," said Nic Puckrin, founder of The Coin Bureau.

2. Crypto Market Structure Clarified
   The CLARITY Act seeks to resolve the long-standing debate over whether cryptocurrencies are securities (regulated by the SEC) or commodities (overseen by the CFTC). By defining jurisdictional boundaries, the bill could reduce legal uncertainty for exchanges like Coinbase, which faced SEC lawsuits under the Biden administration.

3. CBDC Ban Reflects Privacy Concerns
   Conservatives successfully attached a CBDC prohibition to a must-pass defense bill, citing fears of government surveillance. This aligns with Trump’s January executive order opposing a digital dollar.

Market Reactions and Broader Implications

The legislative progress initially sent shockwaves through crypto markets:

• Bitcoin briefly dipped below $117,000 amid the procedural vote turmoil before rebounding.

• Stablecoin-linked stocks like Circle plunged over 7%, while Coinbase fell 4%.

• Long-term, however, analysts see the bills as a catalyst for institutional adoption. "Capital sidelined by regulatory uncertainty may now re-enter," noted Bitfinex’s Jag Kooner.

Globally, the U.S. move could accelerate regulatory competition, particularly with the EU and Asia already advancing their own frameworks. "This could cement the dollar’s dominance in the digital economy," Puckrin added.

What’s Next?

The GENIUS Act is expected to reach Trump’s desk by July 18, while the CLARITY Act faces a tougher Senate path. Meanwhile, traders are bracing for further volatility as macroeconomic risks—including U.S. inflation data and escalating trade tariffs—linger.

Will U.S. crypto regulation set a global standard, or will fragmentation persist? Share your thoughts on our X.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.

Sources:

• CoinDesk: "Crypto Week Back on Track After Lengthy House Do-Over Vote"

• CNBC: "Trump: GOP Holdouts Now Back Crypto Bill After Failed Vote"

• Reuters: "Crypto Bills Set to Advance This Week Take Industry Closer to Mainstream"

• Politico: "House Advances Crypto, Defense Spending Bills Following Standoff"