House Passes Stablecoin Bill, Strategy Buys More Bitcoin, Coinbase Initiated with Buy Rating

The House passes the "Genius Act" bill, outlining federal rules for stablecoins, and the Clarity Act, weakening the Securities and Exchange Commission's power to police crypto. Strategy acquired 4,225 bitcoin for $472.5M, raising its price target to $680 from $590. Coinbase is initiated with a Buy rating and $400 price target, with a promising growth runway and higher margins than its peers.

The U.S. House of Representatives has passed two significant pieces of legislation aimed at regulating the cryptocurrency industry: the Guiding and Establishing National Innovation for U.S. Stablecoins Act (GENIUS Act) and the CLARITY Act. These bills are set to reshape the regulatory landscape for stablecoins and cryptocurrencies, providing much-needed clarity and structure.

GENIUS Act: A New Regulatory Framework

The GENIUS Act, signed into law by President Trump, establishes a clear regulatory framework for stablecoins. The law defines who can issue payment stablecoins and under what conditions. Issuers must be subsidiaries of insured depository institutions, federally chartered nonbanks approved by regulators, or state-regulated entities from jurisdictions certified by the Treasury as meeting federal standards [1]. The law also mandates 1-to-1 asset backing and prohibits the commingling of customer funds. This legislation marks a significant shift from regulatory ambiguity to legal infrastructure, ensuring that stablecoins are recognized, regulated, and supervised.

CLARITY Act: Weighing SEC and CFTC Authority

The CLARITY Act, passed by the House, aims to bring clarity to the regulatory landscape by delineating authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The bill seeks to establish clear oversight responsibilities, offering legal certainty around the classification of digital assets and the treatment of decentralized protocols [2]. This legislation is crucial for fostering innovation and providing a roadmap for compliance in the fragmented regulatory environment.

Market Implications and Investor Sentiment

The passage of these bills has significant implications for the crypto industry. Stablecoin issuers will now need to comply with the new regulations, potentially leading to increased scrutiny and oversight. Meanwhile, institutional players like banks and payment processors can now integrate stablecoins into their systems with greater confidence, thanks to the regulatory clarity provided by the GENIUS Act.

Investors have responded positively to the news. Strategy acquired 4,225 bitcoins for $472.5 million, raising its price target to $680 from $590. Additionally, Coinbase Global Inc. (NASDAQ:COIN) was initiated with a Buy rating and a $400 price target by Argus, citing the company's impressive growth record and the potential impetus from the passage of the GENIUS Act [3].

Looking Ahead

While these bills represent a significant step forward, the implementation phase will be crucial. Regulatory agencies must now clarify jurisdictional boundaries, certify state regimes, and design chartering procedures. The interoperability provision of the GENIUS Act, encouraging but not mandating technical standards, will also be a key area of focus.

In conclusion, the passage of the GENIUS Act and the CLARITY Act marks a pivotal moment for the crypto industry. These laws aim to provide the regulatory clarity and structure needed to foster innovation and growth in the digital asset ecosystem.

References:
[1] https://www.forbes.com/sites/chrisgroshong/2025/07/18/genius-act-signed-stablecoins-now-face-strict-rules--oversight/
[2] https://www.benzinga.com/crypto/25/07/46480331/the-us-just-took-a-big-step-toward-crypto-regulation-heres-what-the-clarity-act-actually-says
[3] https://www.investing.com/news/analyst-ratings/argus-initiates-coinbase-stock-with-buy-rating-400-price-target-93CH-4134002