Cryptocurrency regulation forward: The GENIUS Act becomes law in the US during Crypto Week, while the CLARITY Act advances to the Senate.
The European Union's Anti-Money Laundering Authority (AMLA) has signaled tough expectations for the cryptoasset industry, while the United States has made significant strides in crypto regulation. In a legislative period dubbed "Crypto Week," several landmark bills were passed, including the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) and the Digital Market CLARITY Act (CLARITY Act).
The GENIUS Act: A New Era for Stablecoins
Signed into law in July 2025, the GENIUS Act provides a unified regulatory framework for payment stablecoins, digital assets designed for payments or settlements redeemable at a fixed value. The Act establishes a dual federal-state regulatory regime, allowing federally-approved entities to issue stablecoins under direct federal supervision, while state entities can issue under baseline federal standards, promoting regulatory flexibility alongside consumer protections.
The Act includes requirements for backing stablecoins with high-quality reserves (cash or Treasuries) to ensure stability and safeguards. This legislation closes a major regulatory gap, providing clarity and legitimacy, which is expected to foster innovation, market confidence, and integration with traditional financial institutions.
The CLARITY Act: Regulatory Clarity for Crypto-Asset Market Intermediaries
Passed by the House as part of the same legislative push, the CLARITY Act clarifies the regulatory framework over crypto-asset market intermediaries. It moves digital asset oversight from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC), addressing ongoing ambiguity about agency jurisdiction. The Act sets out clear rules governing exchanges, brokers, and dealers dealing with digital assets, aiming to ensure market integrity and consumer protection.
Impact and Broader Context
These reforms signify a major shift from previously fragmented, agency-specific enforcement actions and policy uncertainty to a coordinated federal regulatory approach. The legislation reflects bipartisan recognition that clear rules are vital for U.S. competitiveness and innovation in the digital asset space. Additional legislation, such as the Anti-CBDC Act, complements these efforts by restricting the Federal Reserve’s authority to issue central bank digital currencies without Congressional approval.
Summary
The GENIUS Act, now law, introduces the first federal stablecoin regulatory framework emphasizing safety, transparency, and dual federal-state oversight. Meanwhile, the CLARITY Act, advancing through Congress, aims to formalize crypto exchange regulation by assigning clear jurisdiction to the CFTC. Together, these acts mark a historic turning point, promising greater regulatory clarity, consumer protection, and industry growth in the U.S. crypto sector.
- As the GENIUS Act establishes a dual federal-state regulatory regime for payment stablecoins, it opens up opportunities for blockchain analytics firms to monitor the transactions and ensure compliance with the new regulations.
- The news of the CLARITY Act's passing has brought relief to Elliptic, a leading cryptocurrency security company, as it brings regulatory clarity to crypto-asset market intermediaries.
- With the new legislation in place, the risk of scams and fraudulent activities in the crypto financial sector may significantly decrease, enhancing overall security and investing confidence.
- As political leaders continue to address the regulation of cryptocurrencies, it is crucial for general-news outlets to report accurately and educate the public on the latest developments in crypto regulations, helping to foster better understanding and responsible investing decisions.
