US Congress Approves First Major Cryptocurrency Legislation

The US government has adopted a hands-off approach to cryptocurrencies, deeming them too dangerous for average Americans and the country's financial system. However, Congress has approved the country's first major crypt legislation, signaling a sea change in the US stance towards digital currencies. The bill sets new rules for stablecoins and sets the stage for more laws to come. Crypto advocates see this as a step towards financial innovation, while critics fear it would lead to weaker policing of the sector. The bill now heads to the Senate where it could face a more uncertain future.

The U.S. Congress has taken a significant step towards regulating the cryptocurrency industry by passing the first major federal law governing cryptocurrencies. The GENIUS Act, which was passed by the House of Representatives on July 17, 2025, sets a new regulatory framework for stablecoins, a type of cryptocurrency pegged to the value of the U.S. dollar. The bill, which received bipartisan support, is expected to increase public trust in stablecoins and grow the cryptocurrency industry overall.

The GENIUS Act makes it easier for banks and other entities to issue stablecoins, which are typically used to trade for other cryptocurrencies. The bill requires issuers to hold reserves of U.S. dollars or similar assets to support the coins' value and to publish details about those reserves. This move is seen as a step towards mainstreaming stablecoins, which have a market value of $260 billion.

The bill's passage comes after a stalemate among House Republicans that lasted for nine hours before the vote. Although many Democrats supported the bill, some expressed concerns about potential conflicts of interest, particularly given the Trump family's involvement in the crypto industry. The Trump administration has promoted cryptocurrencies and has been actively involved in the sector, with President Trump himself launching a meme coin and a stablecoin pegged to the U.S. dollar.

The GENIUS Act is part of a trio of crypto-related proposals considered by the House during "crypto week." The other two bills, the CLARITY Act and the Anti-CBDC Surveillance State Act, also passed and will now head to the Senate. The CLARITY Act establishes the Commodity Futures Trading Commission as the primary crypto regulator, while the Anti-CBDC Surveillance State Act prevents the Federal Reserve from issuing digital currency.

While crypto advocates view the GENIUS Act as a step towards financial innovation, critics argue that it does not contain sufficient guardrails against corruption. Some have pointed to the potential for President Trump to exploit the regulatory system to enrich himself or others, given his family's involvement in the crypto industry.

The bill now heads to the Senate, where it faces an uncertain future. The Senate is expected to consider the bill in the coming weeks, and it could face opposition from some lawmakers who have concerns about the bill's potential impact on the crypto industry.

References:
[1] https://abcnews.go.com/Politics/trump-sign-1st-major-federal-cryptocurrency-bill-law/story?id=123862419
[2] https://www.washingtonpost.com/business/2025/07/17/house-passes-first-major-regulation-crypto-industry/