Key pieces of legislation that will provide a regulatory roadmap for cryptocurrencies and digital assets are rapidly making their way through Congress.
Last night, the Senate passed the GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) by a vote of 68 to 30. The bill received support from all but two Republican senators.
Meanwhile, the CLARITY Act (Digital Asset Market Clarity Act of 2025) is winding its way through the House, having passed through the Financial Services Committee and the Agriculture Committee.
The GENIUS Act creates a regulatory framework for stablecoins, which are digital assets where the value is pegged to fiat currencies like the U.S. dollar.
Stablecoins function much like bank accounts or money market funds but are digital tokens, similar to Bitcoin.
Investors in stablecoins, like USDT, which is issued by Tether, or USDC, which is issued by Circle, receive interest payments, just like a savings account. They can be purchased on crypto platforms like Coinbase.
As a technological innovation, stablecoins offer certain advantages over traditional savings vehicles, including 24/7 liquidity and the ability to use the tokens to make payments directly.
Foreigners, who may otherwise be shut out from the U.S. banking system, can use stablecoins to hold and transfer funds in U.S. dollars.
The bill requires stablecoins to be backed by liquid assets (like short-term Treasuries) and mandates monthly disclosure of reserves.
The CLARITY Act is broader in scope and aims to establish a comprehensive regulatory framework with clear definitions for different types of digital assets.
The CLARITY Act allocates regulatory responsibilities between the Commodity Futures Trading Commission (CFTC), which will have oversight of digital commodities like Bitcoin, and the Securities and Exchange Commission (SEC), which will have oversight of digital securities. It also includes certain provisions for consumer protection.
Next steps
The GENIUS Act will now go to the House, and the CLARITY Act will head to the full House for a floor vote before potentially moving to the Senate.
While further negotiations and revisions are anticipated for both bills, there appears to be sufficient bipartisan support. The GENIUS Act may be signed by President Trump, who is supportive of these efforts, as early as August.
When it comes to digital assets, Rep. Bill Huizenga of Michigan, who is among the co-sponsors of the CLARITY Act, is one of the key players in Congress.
He is also a vocal member of the Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence within the House Financial Services Committee.
Trish sat down this week with Rep. Huizenga to get the inside scoop on legislative activity to solidify the regulatory environment for crypto assets.
