The cryptocurrency industry has seen a new turning point, as the bill to regulate stablecoins and create a legal framework for the entire industry was passed by the US House of Representatives.
On July 17, the US House of Representatives voted to pass a bill to create a legal framework for stablecoins. The bill, called the Genius Act, is a turning point for the digital asset industry after many years of pushing for federal regulation.
The bill will be submitted to US President Donald Trump. He is expected to sign the document into law.
The House of Representatives also passed two other bills on cryptocurrencies to be sent to the Senate for consideration. One creates a legal framework for cryptocurrencies (Clarity Act). One prohibits the US from issuing central bank digital currencies. Both the Genius Act and the Clarity Act previously had bipartisan support.
The cryptocurrency industry in the US has just recorded a new turning point. Photo: ReutersStablecoins are digital currencies developed on blockchains and have the role of stabilizing prices, fixed according to the value of fiat currencies. In recent years, they have been increasingly used in cryptocurrency transactions, helping users quickly transfer between tokens.
If signed into law, the bill would require tokens to be backed by highly liquid assets, such as USD or short-term US government bonds. The issuer would also have to publicly disclose the composition of the collateral assets each month.
Summer Mersinger, head of the American Cryptocurrency Association, commented on July 17 that the House's decision is "a turning point in the development of digital asset policy in the US". The cryptocurrency industry has long pushed lawmakers to pass legislation governing digital assets. They believe that a clear legal framework will help stablecoins and other tokens be used more widely. In 2024, businesses and individuals in the industry spent more than $119 million in elections for candidates who support crypto.
Last year, the US House of Representatives also passed a stablecoin bill. However, the Senate did not consider it. President Trump has recently sought a comprehensive overhaul of US crypto policy, after rallying the industry's support during his campaign.
Tensions in Congress over Trump's crypto activities have threatened the industry's hopes of passing legislation this year. Democrats have become increasingly critical of Trump and his family members' promotion of personal crypto projects.
In January, Trump launched a memecoin called TRUMP. He also owns part of the World Liberty Financial cryptocurrency project. However, the White House said there was no conflict of interest, as Trump's assets are managed by a trust led by his children.
The Clarity Act would define when a cryptocurrency is considered a security or a commodity and clarify the SEC's authority over the industry. This is something that crypto companies have argued about during the term of former US President Joe Biden. They believe that most tokens should be classified as commodities instead of securities, so that platforms can easily offer them to users without having to comply with a series of securities law regulations.
The bill will move to the US Senate for a vote before being sent to the President. Some Democratic lawmakers strongly oppose the Clarity Act, arguing that it is a way to support Mr. Trump's cryptocurrency projects.
Regarding the bill to ban central bank-issued digital currencies (CBDC), Republican lawmakers said that the bill would violate the privacy of Americans. This issue was a major bottleneck in discussions in the House of Representatives last week.
(according to Reuters)