U.S. Passes Landmark Crypto Legislation to End Regulatory Ambiguity

The U.S. crypto market is experiencing a major policy shift as lawmakers move to end years of regulatory ambiguity with the passage of two key pieces of legislation. On July 17, 2025, the U.S. House passed the Digital Asset Market Clarity Act, a foundational reform that sets the stage for a more structured and innovative digital asset industry [1]. This comes in tandem with the earlier enactment of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS Act) on July 18, 2025, which introduced the first federal framework for stablecoin issuance [1]. Together, these developments signal a turning point in how the U.S. approaches crypto regulation.

The Clarity Act aims to clarify how digital assets are classified, who regulates them, and how platforms must comply with the law [1]. Bo Hines, Executive Director of the Presidential Council of Advisors for Digital Assets, emphasized during a Fox Business interview that the new policy ends an era of “policymaking through prosecution” and replaces it with a clear set of rules for innovation [1]. Hines also credited President Trump and crypto czar David Sachs for driving the reforms forward.

The regulatory strategy is being implemented in three phases: first, removing regulatory roadblocks such as Operation Chokepoint 2.0, which had previously restricted crypto firms from accessing traditional financial services; second, laying the groundwork for stablecoin regulation through the GENIUS Act; and third, rolling out comprehensive reforms including tax updates, consumer protections, and market structure adjustments [1]. This phased approach has already received bipartisan support, increasing the likelihood of Senate passage.

The GENIUS Act imposes strict requirements on stablecoin issuers, mandating that tokens be fully backed by high-quality, liquid assets such as U.S. dollars, Treasury bills, and overnight repurchase agreements. Commercial paper, algorithmic stabilization mechanisms, and interest payments to stablecoin holders are explicitly prohibited [1]. Issuers must also undergo a 120-day regulatory review process to gain federal or state authorization and maintain reserves in bankruptcy-remote accounts with monthly reporting obligations [1]. These measures aim to ensure stability and transparency in the $250 billion stablecoin market [2].

Charles Hoskinson, co-founder of Cardano, has predicted that the regulatory clarity will attract major tech firms to the blockchain space. He notes that institutions like Apple, Meta, and Tesla could soon enter the market, accelerating the growth of stablecoins from $240 billion to over $1 trillion [1]. The move also positions the U.S. as a leader in digital asset innovation, with the potential to strengthen the dominance of the U.S. dollar in the digital era.

Implementation of the GENIUS Act will begin in November 2026, with a dual federal-state oversight model allowing states to regulate stablecoin issuers with under $10 billion in assets [3]. During the transition period, firms must comply with federal rules or face market exclusion. The 1:1 asset backing requirement and licensing process are expected to stabilize the market, although full regulatory rulemaking remains pending [3].

Market actors are already responding to the changes. Gate US has launched spot trading services in the U.S., citing the improved regulatory clarity as a key factor in its decision [4]. Meanwhile, the SEC is conducting a national tour with its crypto task force to gather input from small startups, signaling a more inclusive approach to shaping policy [5].

Taken together, these developments reflect a broader trend of regulatory alignment and growing institutional confidence in the U.S. crypto sector. As implementation progresses, the long-term impact of these reforms is expected to be transformative for the digital asset ecosystem.

Source:

[1] Crypto Gets Policy Boost as U.S. Sets Clearer Rules [https://cryptofrontnews.com/crypto-gets-policy-boost-as-u-s-sets-clearer-rules/](https://cryptofrontnews.com/crypto-gets-policy-boost-as-u-s-sets-clearer-rules/)

[2] Stablecoins Get a Federal Framework: Will the US GENIUS Act [https://blogs.law.ox.ac.uk/oblb/blog-post/2025/08/stablecoins-get-federal-framework-will-us-genius-act-deliver-stability-or](https://blogs.law.ox.ac.uk/oblb/blog-post/2025/08/stablecoins-get-federal-framework-will-us-genius-act-deliver-stability-or)

[3] The GENIUS and STABLE Acts Are Rewriting Crypto Risk [https://www.vouch.us/insurance101/genius-stable-acts-crypto-risk-management-tips](https://www.vouch.us/insurance101/genius-stable-acts-crypto-risk-management-tips)

[4] Gate US Launches Spot Trading Services in America [https://bravenewcoin.com/insights/gate-us-launches-spot-trading-services-in-america](https://bravenewcoin.com/insights/gate-us-launches-spot-trading-services-in-america)

[5] SEC's Crypto Task Force Will Tour U.S. to Hear From Small Startups on Policy Reform [https://www.coindesk.com/policy/2025/08/02/sec-s-crypto-task-force-will-tour-u-s-to-hear-from-small-startups-on-policy-reform](https://www.coindesk.com/policy/2025/08/02/sec-s-crypto-task-force-will-tour-u-s-to-hear-from-small-startups-on-policy-reform)