U.S. Enacts GENIUS Act Spurring Crypto Market Activity as House Passes Three Bills

The U.S. House of Representatives has advanced a trio of significant cryptocurrency-related legislative measures aimed at reshaping the regulatory framework for digital assets. The most notable among these is the GENIUS Act, formally known as the General Economic Network Inclusion for Utilization Systems Act, which was signed into law by President Donald Trump on July 17, 2025. This legislation marks the first federal regulatory framework for stablecoins, requiring enhanced custody standards for financial institutions and mandating the Commodity Futures Trading Commission (CFTC) to issue guidelines for stablecoin operations [1]. Simultaneously, the House passed the CLARITY Act, which provides a legal definition for “digital commodity” and clarifies regulatory responsibilities across agencies. It was approved alongside the CBDC Anti-Surveillance State Act, which seeks to restrict the Federal Reserve’s authority to issue a central bank digital currency (CBDC) unless it meets criteria of being “open, permissionless, and private” [2].

The legislative push, dubbed “crypto week” by proponents, reflects a broader Republican-led strategy to integrate digital assets into traditional financial systems. The GENIUS Act’s enactment is viewed as a critical win for stablecoins, particularly for projects like Facebook’s Meta token, which had faced regulatory hurdles. By establishing clear custody rules and oversight mechanisms, the act aims to mitigate risks such as fraud and operational failures [4]. The CLARITY Act addresses gaps in how digital assets are traded and regulated, potentially reducing regulatory arbitrage, while the CBDC bill, led by Representative Tom Emmer, seeks to limit federal banking institutions’ ability to issue CBDCs unless they align with open, decentralized principles [3].

Political challenges persist, however. Democratic opposition to the CBDC Anti-Surveillance State Act has been vocal, with critics arguing that the bill restricts the Fed’s flexibility to innovate in digital currency. Senate Banking Committee Chair Cynthia Lummis has indicated a focus on advancing the CLARITY Act and Emmer’s CBDC bill after the August recess, though Senate scheduling remains uncertain [6]. The CLARITY Act still requires Senate approval, where bipartisan support is anticipated but not guaranteed, and the CBDC bill’s prospects depend on alignment with congressional priorities such as privacy and financial innovation [7].

Analysts suggest the House’s actions could drive regulatory clarity, spurring investment and adoption in the crypto sector. By defining stablecoins as economic tools and establishing market structure frameworks, the legislation addresses key uncertainties that have hindered institutional participation. However, the absence of a unified federal standard may lead to fragmented enforcement, necessitating close coordination between the CFTC, SEC, and other agencies [8]. The Senate’s next steps will be pivotal in determining the final form of these measures, as refinements could either solidify the U.S.’s leadership in digital finance or highlight divisions over government’s role in a rapidly evolving market.

The immediate market response has shown increased on-chain activity for tokens like Ethereum (ETH) and Chainlink (LINK), with institutional investors adjusting portfolios in anticipation of regulatory stability [5]. While the long-term impact remains to be seen, the passage of these bills underscores a strategic shift toward formalizing the role of digital assets in the U.S. financial ecosystem.

Sources:

[1] [Yahoo! News](https://www.yahoo.com/news/articles/citing-potential-fraud-blue-red-163840080.html)

[2] [DLA Piper](https://www.dlapiper.com/en-ca/insights/publications/blockchain-and-digital-assets-news-and-trends/2025/blockchain-and-digital-assets-news-and-trends-july-2025)

[3] [CoinDesk](https://www.coindesk.com/news-analysis/2025/07/28/trump-eyes-moving-u-s-economy-further-into-crypto-via-mortgages-401-k-s)

[4] [Cointelegraph](https://cointelegraph.com/news/tom-emmer-cbdc-bill-federal-reserve)

[5] [Phemex](https://phemex.com/news/article/us-advances-crypto-regulation-with-new-legislative-acts_13803)

[6] [Cointelegraph](https://cointelegraph.com/news/tom-emmer-cbdc-bill-federal-reserve)

[7] [Goodwin](https://www.goodwinlaw.com/en/insights/newsletters/2025/07/newsletters-practices-dcb-digital-currency-blockchain-q2-2025)

[8] [DLA Piper](https://www.dlapiper.com/en-ca/insights/publications/blockchain-and-digital-assets-news-and-trends/2025/blockchain-and-digital-assets-news-and-trends-july-2025)