House Passes Two Key Crypto Bills With Strong Bipartisan Support

The US House of Representatives has made significant strides in regulating the cryptocurrency industry by passing two key pieces of legislation. The first bill, the Digital Asset Market Clarity (CLARITY) Act, aims to establish a clear market structure for cryptocurrencies. This bill was passed with a vote of 294-134, with nearly 80 Democrats voting in favor. The second bill, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, focuses on providing a regulatory framework for stablecoins. It passed with a vote of 308-122, with over 100 Democrats supporting it. These bills are expected to move through the chamber before Congress breaks for its August recess.

Republicans had been pushing for support from their party members as part of their "crypto week" plans, aligning with President Donald Trump's intention to quickly enact his crypto agenda. However, the process was delayed on Wednesday when some Republicans held out for a carve-out to ban the development of a central bank digital currency (CBDC) in the US. This standoff led to hours of stalled voting on a package that included the three bills. The House is expected to take up a vote soon on the Anti-CBDC Surveillance State Act, which aims to ban CBDCs due to concerns over increased government surveillance and control over financial transactions.

The passage of the GENIUS Act was particularly notable as it marks the first major crypto bill ever passed by Congress. This legislation is now headed to the President's desk for approval. The bill aims to provide a clear framework for when a digital asset is considered a commodity or security, addressing a contentious issue in the industry. The strong bipartisan support for the GENIUS Act, with 206 Republicans and 102 Democrats voting in favor, underscores the growing recognition of the need for regulatory clarity in the cryptocurrency market.

In addition to the GENIUS Act, the House also passed a broader market structure bill with bipartisan support. This legislation lays out regulatory rules for the crypto industry and now heads to the Senate for further consideration. The Senate had previously approved a bipartisan stablecoin bill, which experienced delays due to concerns over potential conflicts of interest and the lack of consumer protections. The broader market structure bill also includes provisions to ban a central bank digital currency, reflecting the deep divisions among lawmakers on this issue.

The passage of these bills is a significant victory for the crypto industry, which has long advocated for regulatory clarity. However, critics have raised concerns about the potential for corruption and the lack of strong consumer protections in the legislation. Supporters argue that the bills provide much-needed rules of the road for an industry that has largely operated in a regulatory gray area. The broader market structure bill also includes provisions to ban a central bank digital currency, a contentious issue that has divided lawmakers. Conservatives have argued that a central bank digital currency could lead to increased government surveillance and control over individuals' financial transactions. The legislation banning a central bank digital currency was approved largely along party lines, reflecting the deep divisions on this issue.

The passage of these bills comes at a time when the cryptocurrency industry is facing increased scrutiny from regulators and lawmakers. The Trump administration has taken a more lenient approach to regulating the industry, which has led to concerns about potential conflicts of interest and the lack of consumer protections. The passage of these bills is a step towards addressing these concerns and providing a clearer regulatory framework for the industry. The bills now head to the Senate for further consideration, and their passage reflects the growing recognition of the need for regulatory clarity in the cryptocurrency market. However, critics have raised concerns about the potential for corruption and the lack of consumer protections in the legislation, and these issues will likely continue to be debated as the bills move through the legislative process.