Congress Passes GENIUS Act Setting Clear Rules for Digital Assets

In recent weeks, significant progress has been made in the United States Congress towards establishing clear and consistent rules for the digital asset sector. The passage of the GENIUS Act marks a major milestone in ensuring that this emerging industry operates under guidelines that protect consumers, encourage responsible innovation, and strengthen national security. However, this is just the beginning of a broader effort to address the complexities of digital assets.

Senator Cynthia Lummis and former Congressman Mike Rogers, who bring complementary perspectives from financial policy and national security, emphasize the importance of the United States leading in Bitcoin and digital asset innovation. They argue that clear, responsible rules will unlock economic opportunities, preserve privacy, and protect against illicit finance. The approach must balance freedom and security, and they are committed to advancing this balance.

The GENIUS Act focuses on establishing guardrails for stablecoins, which are digital tokens backed 1:1 by dollars or dollar equivalents. It provides a clear pathway for both state and federal oversight, ensures that stablecoin issuers meet transparency and reserve requirements, and protects consumers without stifling innovation. This bipartisan bill positions the U.S. as a leader in global finance with a competitive and credible framework for stablecoins.

Broader market structure reform is also crucial. Congress needs to provide clarity by distinguishing between digital assets that are securities and those that are commodities. Bills like the Lummis-Gillibrand Responsible Financial Innovation Act grant primary jurisdiction to the CFTC for digital asset commodities, give the SEC new consumer protection authority, and lay the groundwork for responsible innovation across the digital asset ecosystem. This legislation sends a clear message that the U.S. is ready to compete globally in the digital asset space.

Bitcoin remains the foundation of the digital asset ecosystem, representing the best chance for the U.S. to lead in building a decentralized monetary system rooted in liberty and individual sovereignty. The BITCOIN Act, introduced in both the U.S. Senate and House of Representatives, aims to clarify Bitcoin’s status under federal law, advance efforts to integrate it into the financial system, and promote its use as a secure and censorship-resistant reserve asset.

In practice, states like Michigan are already taking proactive steps. A bipartisan group of lawmakers in Michigan introduced a series of pro-crypto bills to protect consumers, promote transparency, and create a “Cryptocurrency Bill of Rights.” The state also launched the Michigan Cryptocurrency and Financial Innovation Caucus to educate policymakers and support forward-thinking digital asset strategies. This includes a proposed state-run cryptocurrency reserve, which could help secure Michigan’s financial future.

Wyoming has set a precedent for smart regulation and innovation in the digital asset space, passing more than 30 digital asset laws in recent years. These laws establish a comprehensive framework for blockchain banks, digital property rights, and tokenized finance. Michigan is now emerging as a national leader in this area, and this development is encouraging for the future of digital assets in the U.S.

Despite these advancements, major issues remain unsolved in Washington. There is a need for a de minimis exemption to allow Americans to use Bitcoin for small everyday purchases without triggering burdensome tax reporting. Additionally, the double taxation of Bitcoin from mining to sale must be addressed, and the Corporate Alternative Minimum Tax (CAMT) must be fixed to ensure that Bitcoin is not penalized under the new regime. These issues are foundational to ensuring that Bitcoin can thrive as a tool for freedom and inclusion.

What is at stake is more than just a new asset class; it is the future of financial sovereignty, national competitiveness, and innovation itself. The U.S. must lead the world in building a digital economy that reflects values such as transparency, individual liberty, and open access. The GENIUS Act is a major victory, but it is not the final one. In the months ahead, efforts will continue to enact smart, comprehensive rules to govern how digital assets are issued, traded, and regulated, address critical tax and regulatory issues, and ensure that the United States remains the safest and most trusted home for Bitcoin and digital assets anywhere in the world.