Congress Passes Crypto Laws: What You Need to Know

Crypto Laws: In a historic step for the cryptocurrency industry, the US House of Representatives passed three major crypto bills on July 17, signaling the most serious effort yet to regulate digital assets. The highlight is the Genius Act, which creates a long-awaited federal framework for stablecoins—cryptocurrencies pegged to the US dollar or other low-risk assets.

The bill now moves to President Donald Trump, who is expected to sign it into law by July 18. Alongside it, the House also approved two other bills: the Clarity Act, which defines how digital assets are classified and regulated, and a third bill that bans the creation of a central bank digital currency (CBDC) in the US.

Together, these measures could reshape how cryptocurrency is regulated, adopted, and trusted—especially by institutional investors and traditional finance firms.

What Is the Genius Act?

The Genius Act passed with bipartisan support (308–122). It sets clear rules for the $238 billion stablecoin market. Stablecoins are digital tokens designed to keep a stable value—usually $1—by being backed one-to-one with US dollars or liquid assets like short-term Treasury bills.

Under the new law:

• Stablecoin issuers (banks and crypto firms alike) must hold sufficient reserves
• They must publicly disclose their reserve assets every month
• Issuers must meet strict liquidity and transparency standards

This move is expected to bring more trust to stablecoins and protect users from unbacked or risky tokens.

What Is the Clarity Act?

The Clarity Act, passed 294–134, addresses one of crypto’s biggest problems: regulatory confusion.

For years, crypto companies have struggled to know whether their tokens are securities (regulated by the SEC) or commodities (overseen by the CFTC). The Clarity Act aims to:

• Clearly define when a token is a security vs. a commodity
• Outline the responsibilities of the SEC and CFTC
• Help exchanges and developers launch and trade tokens with more confidence

This law could prevent future legal battles and allow innovation to grow under clearer guidelines.

What About the CBDC Ban?

The third bill bans the Federal Reserve from launching a US central bank digital currency. Supporters argue that such a currency could give the government too much control over citizens’ financial data. The bill, largely backed by Republicans, reflects growing resistance to centralized digital currencies.

Why This Matters for Crypto Investors

These new laws are a turning point for the crypto industry.

For years, companies faced uncertainty and legal action from regulators. Now, with the Genius and Clarity Acts in place:

• Stablecoins gain legitimacy, likely attracting more users and institutional partners
• Retail investors can expect better protection, thanks to strict reserve requirements
• Developers and exchanges will have more clarity, making it easier to launch new tokens
• The US could become a crypto-friendly hub, drawing global capital and talent

Many experts are even comparing this moment to the 1930s securities laws that helped build Wall Street.

Critics Raise Red Flags

Despite bipartisan backing, the bills are not without controversy.

Some Democrats argue the legislation favors Trump’s personal crypto interests. Trump, who once called crypto a “scam,” has since launched his own token ($TRUMP) and co-founded a crypto finance firm. Critics say the Clarity Act could weaken consumer protections in favor of lighter regulations that benefit his business ventures.

Others worry that treating stablecoins as safer than they really are could expose the financial system to new risks. A coalition of consumer advocacy groups warned Congress this year that the Genius Act may “mislead consumers into thinking stablecoins are risk-free” when bankruptcy protections remain unclear.

What’s Next?

The Genius Act is almost certain to become law. However, the Clarity Act and CBDC ban must still pass the Senate, where Republicans have only a narrow majority. Many Senate Democrats remain skeptical of expanding crypto regulation under Trump’s leadership.

Meanwhile, the crypto markets reacted with optimism. Bitcoin surged past $120,000, and several stablecoin firms praised the legislation as a major breakthrough.

With clear rules finally emerging in the US, the world is watching closely. This could mark the beginning of a new era for digital finance—one where crypto becomes not just a fringe asset, but a pillar of the global economy.

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