GENIUS Act Faces Uncertain Future as House Considers Merging with CLARITY Act

The GENIUS Act, a pivotal piece of legislation aimed at regulating stablecoins, has been received by the House after securing strong bipartisan support in the Senate with a 68-30 vote. This bill, which has been widely regarded as a foundational framework for digital asset policy, now faces a new challenge as House leadership considers merging it with the broader CLARITY Act, a comprehensive proposal for crypto market structure.

The GENIUS Act was approved by the Senate on June 17, 2025, and was received by the House on June 23, 2025. However, the bill was immediately "held at the desk," indicating that House leadership is considering its next steps carefully. This administrative pause suggests that while the bill has made swift progress, its path forward is uncertain.

Some lawmakers, including GOP Majority Whip Tom Emmer, are advocating for a merger between the GENIUS Act and the CLARITY Act. The CLARITY Act aims to provide a legal framework for classifying crypto assets and assigning regulatory authority between the SEC and CFTC. Emmer stated that market structure is essential to any Congressional action on digital assets and that the GENIUS Act has a path in the House, so long as it’s accompanied by the CLARITY Act. This merger could significantly delay the GENIUS Act, as it would require Senate approval of a modified version, potentially stretching negotiations into the fourth quarter of 2025 or beyond.

Donald Trump has called for the immediate passage of the GENIUS Act without amendments. His team released a statement urging the House to avoid changes, emphasizing the urgency of implementing a stablecoin framework to boost U.S. competitiveness in digital finance. This political pressure adds a layer of urgency, especially as both parties position themselves on crypto policy ahead of the 2026 midterm cycle.

The CLARITY Act, often referred to as the crypto industry’s long-awaited regulatory backbone, seeks to define digital assets as either commodities or securities, ending years of regulatory ambiguity. While the House version has cleared preliminary markups, its path to final passage is still unclear. The Senate Banking Subcommittee on Digital Assets has revealed a separate set of principles for its own version of CLARITY, suggesting further divergence between chambers. If the GENIUS Act is tied to CLARITY, the two bills could be held up in extended negotiations, making it less likely that stablecoin rules would be enacted in 2025.

Market observers are closely watching how this political gridlock might affect U.S. stablecoin suppliers. While these businesses currently operate under state-issued guidelines, a federal standard would provide long-term certainty. Industry analysts warn that a delay in stablecoin regulation could weaken U.S. competitiveness against jurisdictions where regulations are already being implemented. Additionally, unregulated growth of offshore stablecoins may continue to sidestep U.S. consumer protection goals.

As of now, the GENIUS Act sits "held at the desk" in the House. The coming days will reveal whether House leadership prioritizes a clean vote or gambles on a broader crypto overhaul. With Senate approval already secured and presidential pressure mounting, the House stands at a crossroads: act quickly and send GENIUS to the White House, or link it to a wider crypto battle that could cost critical momentum.