GENIUS Act Passes with Bipartisan Support as Broader Crypto Rules Face Hurdles

The cryptocurrency industry’s recent legislative victory with the passage of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act has energized advocates and lawmakers alike, signaling growing bipartisan support for digital assets. The law, signed by President Donald Trump on July 18, 2025, marks the first major regulatory framework for stablecoins in the U.S. [1]. However, the broader push to formalize market structure rules for digital assets faces significant hurdles, with lawmakers and industry stakeholders acknowledging the complexity of navigating political divides and regulatory ambiguities [1].

The GENIUS Act was widely seen as a test case for congressional crypto legislation, given its relative simplicity compared to proposals addressing market structure. Stablecoin regulation enjoys broad support because it is perceived as a low-risk, high-impact measure with bipartisan backing. In contrast, market structure legislation—aimed at clarifying regulatory roles for the SEC and CFTC and defining token classifications—has proven contentious. Debates over whether tokens are securities or commodities remain unresolved, creating uncertainty about oversight responsibilities [1].

Political challenges further complicate progress. During House “crypto week” in July, conservative Republicans stalled proceedings to advocate for the Anti-CBDC Surveillance State Act, a partisan proposal to block central bank digital currencies. While the House included the measure in a draft defense bill, Senate Democrats could strip it out, reigniting partisan disputes. Additionally, Trump’s involvement in the crypto sector has raised concerns among Democratic senators, such as Adam Schiff (D-Calif.), who voiced reservations about the market structure bill during a recent hearing [1].

Despite these obstacles, optimism persists. The House version of market structure legislation, the CLARITY Act, garnered nearly 80 Democratic co-sponsors, reflecting bipartisan interest. Newer Senate Democrats, including Angela Alsobrooks (D-Md.) and Ruben Gallego (D-Ariz.), have shown openness to crypto legislation, potentially providing the seven Democratic votes needed for Senate passage. Senator Kirsten Gillibrand (D-N.Y.) has emerged as a key Democratic advocate, though no Democrat currently sponsors the measure [1].

The Senate’s approach diverges from the House’s. While the House passed its bill, the upper chamber plans to craft its own version, with Senate Republicans releasing a draft this week that introduces a new category of “ancillary assets.” This approach, coupled with concerns raised by Senator Amy Klobuchar (D-Minn.) about the House’s proposal, underscores the Senate’s cautious stance [1]. Senate Banking Committee Chair Tim Scott (R-S.C.) aims to pass the bill by September, but delays are likely if Democratic pushback persists. A year-end deadline seems more realistic but hinges on securing Democratic support.

The final version sent to Trump’s desk will likely reflect the Senate’s negotiated outcome. As lawmakers reconvene after August recess, committee actions in the Senate Banking and Agriculture Committees will clarify the feasibility of Democratic backing and the political calculus required for passage [1]. For now, the crypto industry’s momentum remains mixed: a landmark stablecoin law has been achieved, but broader regulatory clarity will require navigating a labyrinth of partisan and regulatory complexities.

Source: [1] [title:Market Structure Proposals May Not Capture Crypto Momentum In Congress] [url:https://www.forbes.com/sites/owentedford/2025/07/23/market-structure-proposals-may-not-capture-crypto-momentum-in-congress/]