US House Passes Major Crypto Bills; GENIUS Act Heads to Trump’s Desk

• The U.S. House passed the bipartisan GENIUS Act, establishing a regulatory framework for stablecoins.
• The bill has gone to President Trump for approval.
• Lawmakers also advanced the Clarity Act to define crypto tokens as securities or commodities.

In a major step-up for the crypto industry, the U.S. House of Representatives on Thursday passed the GENIUS Act, a bipartisan bill setting up a federal regulatory system for stablecoins. The legislation now goes to President Donald Trump to be signed into law.

The House also cleared two other crypto-related bills. The first, the Clarity Act, tries to define when a crypto asset is a security or a commodity. The second bill prohibits the government from issuing a central bank digital currency (CBDC). Both of these measures now await action in the Senate.

What the GENIUS Act means for stablecoins

The Genius Act passed with significant bipartisan support in a 308–122 vote. The bill requires that U.S. dollar–pegged stablecoins be backed by liquid assets, such as cash or short-term Treasury securities. 

Issuers must also disclose the composition of their reserves monthly to enhance transparency and consumer protection.

Stablecoins are a cornerstone of crypto trading and payments. Their total market capitalization has surged in recent years, reaching over $262 billion. This has prompted calls for regulatory oversight to prevent systemic risks.

“This historic legislation will bring our payment system into the 21st century,” said Senator Bill Hagerty, the bill sponsor.

Clarity Act tries to Limit SEC power

Meanwhile, the Clarity Act passed in a 294–134 vote. It attempts to resolve a long-standing dispute between regulators and crypto firms over the classification of digital assets. The bill lays out new definitions that would determine whether a token is a security (under SEC oversight) or a commodity (under CFTC jurisdiction).

Crypto companies have aggressively lobbied for the bill, arguing that the SEC’s approach, especially under the Biden administration, has stifled innovation and created legal uncertainty. If the bill passes the Senate and is signed into law, it would significantly narrow the SEC’s reach over crypto markets.

However, some Democrats opposed the Clarity Act. They are criticizing it as a backdoor benefit for President Trump’s personal crypto ventures, which include a meme coin called TRUMP and a crypto finance firm called World Liberty Financial. 

Meanwhile, the White House has denied any conflicts of interest, stating that Trump’s assets are in a trust managed by his children.

CBDC ban moves forward on privacy grounds

In a third vote, House lawmakers approved a bill to ban the issuance of a U.S. central bank digital currency. This proposal is championed by Republican lawmakers who argue that a digital dollar could violate Americans’ privacy rights.

While the Federal Reserve has conducted research into CBDCs, no official plans to launch one have been announced. Even President Trump signed an executive order in January that prohibits the government from pursuing CBDDC initiatives.

Related: What Is a Central Bank Digital Currency (CBDC)? Understand Its Types, Uses, and More

Crypto’s political clout on full display

The passage of these bills highlights the growing influence of the crypto industry in Washington. The sector reportedly spent over $119 million backing pro-crypto candidates in the last election cycle.

Notably, the stablecoin bill passed the House last year as well, but the Senate, then controlled by Democrats, failed to take it up. With Trump-aligned lawmakers now driving the legislative agenda, the outlook for crypto legislation has dramatically shifted.

Related: Citigroup Confirms It Is Actively Evaluating a Citi-Issued Stablecoin

While the Genius Act is expected to become law shortly, the Clarity Act and CBDC ban still require Senate approval. Their passage could further reshape the legal and political landscape for crypto in the United States.

For now, the industry is celebrating a long-awaited breakthrough. As regulation comes into focus, stablecoins and other digital assets may finally find a path toward mainstream adoption, backed by clearer rules and bipartisan momentum.