Cryptocurrency legislation, referred to as CLARITY and GENIUS, is advancing in the United States House of Representatives.
The U.S. Congress is poised to take a significant step forward in digital asset regulation with the upcoming votes on two key acts: the CLARITY Act and the GENIUS Act.
The CLARITY Act, also known as the Digital Asset Market Clarity Act of 2025, is set to be voted on by the full House, with President French Hill expressing confidence that both factions' support is sufficient to pass this bill. The Act establishes a comprehensive regulatory framework for digital assets, drawing clear lines between those classified as securities and those as commodities.
One of the key provisions of the CLARITY Act is the definition of a "digital commodity" as a digital asset intrinsically linked to a blockchain, with value derived from its use in that system. Digital commodities are not presumed to be securities, provided they meet certain criteria, and the Securities and Exchange Commission (SEC) retains oversight over digital assets structured as traditional securities (e.g., investment contracts), while the Commodity Futures Trading Commission (CFTC) gains clear authority over digital commodities.
The Act also introduces three new registration classes under CFTC jurisdiction: Digital Commodity Exchanges, Digital Commodity Brokers, and Digital Commodity Dealers. A decentralization test has been established, allowing digital commodity issuers to file a notice with the SEC to assert that a blockchain is mature—i.e., sufficiently decentralized—and thus under CFTC jurisdiction.
Meanwhile, the GENIUS Act, which has already been passed by the Senate, focuses on stablecoins, especially those pegged to the U.S. dollar. The Act's primary aim is to provide legal clarity and consumer protection for U.S. dollar-backed stablecoins, an area of increasing importance in digital finance.
The CLARITY and GENIUS Acts, if passed, aim to reduce regulatory ambiguity, foster innovation, and protect consumers. They do not, however, address central bank digital currencies or include explicit anti-CBDC provisions.
If the CLARITY and GENIUS Acts are passed, former President Trump is expected to sign the GENIUS Act by the end of the week. The CLARITY Act is likely to be voted on by the full House tomorrow. Representative Bryan Steil has expressed excitement about the developments, tweeting, "Crypto Week continues!"
The passage of these acts could be a significant triumph for the American cryptocurrency industry, providing essential transparency, protecting user privacy, and stimulating innovation. The United States may be preparing to embark on a new phase in managing digital currency.
The CLARITY Act, if passed, will establish a comprehensive regulatory framework for digital assets in the business realm, specifically defining a "digital commodity" as a digital asset with value derived from a blockchain, falling under the Commodity Futures Trading Commission (CFTC)'s authority.
The GENIUS Act, focused on stablecoins, is already passed by the Senate and expected to be signed by former President Trump, aiming to provide legal clarity and consumer protection in the field of digital finance.
