Congress Weighs Crypto's Future as Regulation Takes Center Stage

The U.S. Senate has introduced a revised version of key crypto legislation amid ongoing debates over the regulatory future of digital assets. The updated draft of the GENIUS Act, enacted earlier this year, has set a precedent by establishing comprehensive rules for stablecoin issuance. This law mandates that stablecoins, which are digital assets pegged to the U.S. dollar and intended for payments, must be fully backed by cash or highly liquid assets and subject to monthly audits and anti–money laundering compliance [1]. The revised Senate version is expected to build on these provisions while addressing additional concerns related to consumer protection and regulatory oversight.

Simultaneously, the CLARITY Act, which was passed by the House in 2025, remains under Senate review. This legislation aims to clarify the regulatory status of digital assets under federal securities and commodities laws, reducing regulatory overlap and increasing transparency for businesses and investors [1]. The bill would formalize the role of the Commodity Futures Trading Commission (CFTC) in regulating decentralized blockchain-based assets that are not classified as securities, aligning with the framework outlined in the GENIUS Act [1]. Meanwhile, the SEC would continue to oversee digital assets that qualify as securities, including those issued through initial coin offerings (ICOs) or by centralized entities.

The Senate version of the anti–CBDC surveillance state bill, sometimes referred to as the NO CBDC Act, also remains in development. This legislation seeks to prevent the Federal Reserve from issuing a central bank digital currency (CBDC) for retail use without explicit congressional approval. If enacted, the law would reflect a cautious stance toward government-issued digital currencies, contrasting with the approach of countries like China, which has advanced its digital yuan through pilot programs [1]. The U.S. policy emphasizes private-sector innovation and limits the federal government’s role in digital payment systems.

The revised legislative agenda comes as the SEC has begun proposing changes to its own regulatory approach. The agency outlined a plan to reform existing rules governing digital assets, including potential exemptions for digital asset offerings and amendments to facilitate crypto trading on national securities exchanges [3]. SEC Chair Paul Atkins emphasized that the new agenda reflects the commission’s commitment to supporting innovation while maintaining investor protection [3]. This shift marks a significant departure from the more restrictive approach seen in recent years, with the Trump administration backing a pro-crypto policy that has led to the approval of spot Bitcoin and Ethereum trading on major exchanges [3].

The updated Senate proposals are expected to influence how federal agencies coordinate in overseeing digital assets. The GENIUS Act and pending CLARITY Act are seen as steps toward a more cohesive regulatory framework, with the IRS maintaining its current stance of treating cryptocurrencies as property for tax purposes. The IRS has applied this interpretation since 2014, meaning that transactions involving digital assets can trigger capital gains or losses [1]. Additionally, while states still play a role in consumer protection and licensing through money transmitter laws, the federalization of oversight is gaining momentum [1].

The Senate’s revised approach to crypto legislation reflects broader global trends in digital asset regulation, where countries like Canada, the U.K., and the EU have implemented diverse frameworks. The U.S. is now aligning with international efforts to create clear and consistent rules for stablecoins and digital asset service providers, with the EU’s MiCA regulation serving as a model for harmonizing cross-border oversight. As the U.S. legislative process continues to evolve, the outcome of these debates will have far-reaching implications for the future of crypto markets and investor confidence [5].

Source:

[1] Cryptocurrency Regulation: A Guide to U.S. & Global Policies (https://www.britannica.com/money/cryptocurrency-regulation)

[2] Clear crypto rules top priority as SEC unveils Spring '25 ... (https://www.grip.globalrelay.com/clear-crypto-rules-top-priority-as-sec-unveils-spring-25-regulatory-agenda/)

[3] SEC Unveils New Rulemaking Plan to Reform Crypto ... (https://watcher.guru/news/sec-unveils-new-rulemaking-plan-to-reform-crypto-regulation)

[4] US SEC unveils agenda to revamp crypto policies, ease ... (https://www.reuters.com/legal/government/us-sec-unveils-agenda-revamp-crypto-policies-ease-wall-street-rules-2025-09-04/)

[5] The EU's MiCA stablecoin regulation prevents ... (https://www.ledgerinsights.com/the-eus-mica-stablecoin-regulation-prevents-remuneration-or-does-it/)

[6] Decoding Crypto Legislation: GENIUS Moves and Clarity ... (https://www.troutman.com/insights/decoding-crypto-legislation-genius-moves-and-clarity-paths/)