House Passes GENIUS Act 307-122, CLARITY Act 294-134 for Digital Asset Regulation

The House of Representatives has made significant progress in advancing digital asset regulations with the passage of two key bills: the GENIUS Act and the CLARITY Act. The GENIUS Act, which establishes a federal framework for the issuance and supervision of payment stablecoins, was approved with a vote of 307-122. This measure directs the Federal Reserve to register and examine insured depository institutions at the national level, while also allowing qualifying state-chartered entities to issue dollar-backed tokens under comparable standards. Issuers must hold high-quality liquid assets equal to their token liabilities and report attestations at set intervals. The bill also creates consumer redemption rights and sets segregation rules to prevent the rehypothecation of backing assets without specific customer authorization.

In a separate action, the House approved the CLARITY Act by a 294-134 vote. This bill defines jurisdictional lines for digital asset trading venues that list tokens meeting functional tests, which fall outside the scope of securities law once the networks reach sufficient decentralization and public float. The CLARITY Act directs the SEC and the Commodity Futures Trading Commission to establish a joint registration lane that allows platforms to list qualifying tokens, trade spot, and derivatives under coordinated custody standards, and file token disclosure packets that scale with market capitalization tiers. Issuers conducting sales to US persons must submit initial information statements, and the measure instructs banking supervisors to recognize qualified custodians that hold both stablecoins and non-stable digital assets under shared segregation and audit rules.

The White House is expected to host the signing of the GENIUS Act. The Senate will now take up the CLARITY Act on a schedule that leadership has not yet set. This House action marks the first chamber-wide votes to codify federal stablecoin oversight and to define trading venue treatment for broader digital assets in the current Congress. The passage of these bills represents a significant step forward in the regulation of digital assets, providing a clearer framework for issuers and trading venues while ensuring consumer protection and market stability.