U.S. Congress Passes Landmark Legislation Boosting Cryptocurrency Regulation

House Passes Landmark Crypto Legislation, Aims to foster Innovation and Protect Consumers

Washington D.C. – In a significant move for the burgeoning digital asset industry, the U.S. House of Representatives overwhelmingly passed three key pieces of legislation on Thursday,widely dubbed “crypto week,” aimed at providing regulatory clarity and safeguarding consumers. The bills, including the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act), signal a proactive approach by Congress to shape the future of digital currency.

The GENIUS Act, which received broad bipartisan support wiht a vote of 308-222, now heads to President stablecoins, a type of digital asset pegged to stable assets like the U.S. dollar.

House Majority Whip Tom Emmer, R-Minn., lauded the passage, stating, “For far to long, America’s digital assets industry has been stifled by ambiguous rules, confusing enforcement and the Biden governance’s anti-crypto crusade.” He added, “President Trump and this Congress are correcting course and unleashing America’s digital asset potential with historic, transformative legislation. President Trump promised to make America the crypto capital of the world. Today, we delivered.”

The accomplished passage of the GENIUS Act followed some internal deliberation within the Republican party. A dozen GOP House members initially expressed reservations, leading to a delay in the vote on Tuesday. However, following a meeting between President Trump and a group of these lawmakers, an agreement was reached, paving the way for Thursday’s approval. Despite this, some Republican lawmakers continued to press for amendments, causing a nine-hour delay on Wednesday before the final vote.

Along with the GENIUS Act,the House also advanced two other significant pieces of legislation:

The Digital Asset Market Clarity Act of 2025: Approved with a 294-134 vote,this bill would define digital assets as either commodities,securities,or stablecoins. It also proposes to divide regulatory oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), offering a clearer framework for market participants.
The Anti-Central Bank Digital Currency Act: This measure, passed by a narrow 219-210 vote, would prohibit the Federal Reserve from issuing its own cryptocurrency. Opponents of a CBDC argue that it could grant the federal government unprecedented power to monitor and track currency usage.

Both the Digital Asset Market Clarity Act and the Anti-Central Bank Digital Currency Act now move to the Senate for consideration, marking a pivotal moment in the nation’s approach to digital finance. The coordinated effort during “crypto week” underscores a growing consensus in Congress to foster innovation while ensuring the stability and security of the digital asset landscape.

How might teh classification of digital assets into commodity tokens, securities tokens, and payment tokens impact existing crypto projects?

Key Provisions of the “Digital Asset Clarity Act”

On July 17th, 2025, the U.S. Congress passed the “Digital asset Clarity Act,” a sweeping piece of legislation designed to provide a extensive regulatory framework for the cryptocurrency industry. This marks a pivotal moment for digital assets, blockchain technology, and the future of finance in the United States. For years, the lack of clear rules has created uncertainty, hindering institutional investment and innovation. This new law aims to address those concerns.

Defining Digital Assets: A Core Component

A central element of the Act is the classification of digital currencies, tokens, and othre crypto assets. The legislation establishes three primary categories:

1. Commodity Tokens: These are defined as digital assets functioning primarily as investments, similar to traditional commodities like gold or oil. The commodity Futures Trading Commission (CFTC) will have primary oversight. Examples include many altcoins and utility tokens with limited real-world request beyond speculation.
2. securities Tokens: Assets deemed to represent ownership or debt will be classified as securities and fall under the jurisdiction of the Securities and Exchange Commission (SEC). This includes Initial Coin Offerings (ICOs) that meet the Howey Test criteria.
3. Payment Tokens: Stablecoins and other cryptocurrencies designed primarily for transactional purposes are categorized as payment tokens. These will be subject to banking regulations,overseen by a newly formed Digital Asset Payments Council (DAPC) within the Treasury Department.

This clear categorization is a significant step forward, resolving ambiguity that has plagued the industry. Crypto regulation has been a long-standing debate, and this act attempts to provide a balanced approach.

Regulatory Oversight and Enforcement

The Act significantly expands the authority of existing regulatory bodies and creates new ones to effectively oversee the crypto market.

CFTC’s Expanded Role

The CFTC will now have explicit authority to regulate cryptocurrency derivatives and enforce anti-manipulation rules in the spot market for commodity tokens. This includes oversight of crypto futures and options trading. The agency is also tasked with developing guidelines for decentralized finance (DeFi) platforms operating within the commodity token space.

SEC’s Focus on Securities Offerings

The SEC will continue to regulate securities tokens, focusing on ensuring investor protection and preventing fraud in crypto fundraising activities.The Act clarifies the application of existing securities laws to digital asset exchanges listing securities tokens.

The Digital Asset Payments Council (DAPC)

The newly established DAPC will be responsible for:

Issuing licenses for stablecoin issuers.

Establishing reserve requirements for stablecoins to ensure their peg to fiat currencies.

Overseeing crypto payment processors and ensuring compliance with anti-money laundering (AML) regulations.

Developing interoperability standards for digital wallets.

Implications for Businesses and Investors

The “Digital Asset Clarity Act” will have far-reaching consequences for both businesses operating in the crypto space and individual investors.

Benefits for Institutional Investors

The increased regulatory clarity is expected to attract significant institutional investment into the cryptocurrency market. Pension funds,hedge funds,and other large investors have been hesitant to enter the space due to the lack of a defined legal framework. This legislation removes a major barrier to entry.

Compliance Costs for Crypto Companies

Crypto exchanges, custodial wallets, and other businesses will face increased compliance costs as they adapt to the new regulations. This includes implementing robust AML/KYC (no Your Customer) procedures,undergoing regular audits,and perhaps obtaining licenses.

Investor Protection Measures

The Act includes several provisions designed to protect investors, including:

Enhanced disclosure requirements for crypto projects.

Increased penalties for fraud and market manipulation.

Mandatory registration of crypto investment advisors.

Requirements for crypto exchanges to safeguard customer funds.

Impact on DeFi

The regulation of DeFi remains a