Digital Asset Legislation
GENIUS, CLARITY, CBDC
Here’s a breakdown of the three key crypto-related bills shaping U.S. legislation during “Crypto Week” (July 2025). Note that the GENIUS Act has officially been passed and signed into law by the President while the CLARITY AND CBDC Acts both passed the House and now sit with the Senate for review.
🧠 1. Genius Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act)
Key Features:
Creates the first-ever federal framework for payment stablecoins, defining who may issue them and how they must operate.
Requires 1:1 backing of stablecoins with U.S. dollars or “low-risk” reserves (like Treasury bills), plus monthly audits and disclosures.
Only “permitted payment stablecoin issuers”—domestically chartered banks or state-regulated entities—can issue such coins; foreign issuers must meet comparable oversight standards.
Includes legal redemption rights and priority claim status for holders in case of issuer insolvency.
Establishes dual federal–state oversight, with a clear rulemaking timeline and preemption of conflicting state rules.
Defines that payment stablecoins are not securities or commodities, and sets a 3‑year ban on offering them through digital asset service providers unless issued by permitted issuers.
Legislative Status: Passed Senate 68–30 (June 17), passed House 308–122 (July 17), signed into law by President Trump on July 18, 2025.
🔍 2. Clarity Act (Digital Asset Market Clarity Act)
Key Features:
Provides legal definitions for cryptocurrencies, distinguishing “Digital Commodities” (CFTC‑regulated) vs. “Restricted Digital Assets” (SEC‑regulated).
Creates a certification pathway for issuers to formally declare whether their token is a commodity or security; includes a safe harbor for pre‑existing tokens.
Title II and IV: Sets CFTC oversight for commodity tokens—including requirements for registration, asset segregation, AML/KYC, cybersecurity, and market integrity.
Title III: Reinforces SEC oversight for security tokens, with required registration for intermediaries (brokers, dealers, trading platforms).
Aims to reduce confusion and spur innovation by clarifying jurisdictional boundaries and investor protections.
Legislative Status: Passed House 294–134 (July 18, 2025). Awaiting Senate action.
🚫 3. Anti‑CBDC Surveillance State Act (aka CBDC Act)
Often referred to as the Anti‑CBDC Surveillance State Act, this bill seeks to prevent the Federal Reserve from issuing a U.S. central bank digital currency (CBDC).
Key Features:
Bans the Fed from developing, testing, or issuing a CBDC, including through intermediaries, unless Congress explicitly authorizes it.
Prohibits Federal Reserve banks from providing unregulated accounts or services directly to individuals/firms, safeguarding against "digital surveillance" concerns.
Reflects bipartisan privacy-focused concerns over a central digital currency potentially enabling government tracking of transactions.
Legislative Status: Passed House alongside the other two bills; now under Senate review.
These bills represent a major shift toward comprehensive digital asset legislation, reducing uncertainty, protecting consumers, and ensuring the U.S. retains global leadership in crypto innovation.