- GENIUS Act mandates stablecoins be backed by liquid financial assets.
- Clarity Act limits SEC control over certain digital crypto assets.
- CBDC ban bill raises privacy concerns over digital dollar surveillance.
The U.S. House of Representatives has passed the GENIUS Act, a bill that sets federal rules for stablecoins. It passed with a 308–122 vote and now heads to President Donald Trump for final approval.
Stablecoins pegged to the U.S. dollar must, under the legislation, be fully backed by liquid assets such as cash or short-term Treasury securities. To enhance transparency, the composition of reserves must be published monthly.
Currently valued at over $262 billion, stablecoins are playing an increasingly central role in cryptocurrency trading and payments. According to lawmakers, the new rules will help safeguard consumers and decrease financial risks in the fast-growing industry.
Those advocating the bill feel it will bring the payment system into the age of modernity and take the stablecoin issuers to task. In the next few days, President Trump is expected to sign it into law.
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House Clears Clarity Act Defining Crypto Oversight Rules
The House also enacted the Clarity Act, which categorizes the character of crypto assets. It decides the regulation of tokens as security or commodity and whether under the SEC or the CFTC.
It was enacted in Congress with a 294-134 vote and supported by crypto companies that want more legal direction. Those critical, primarily Democrats, objected to potential profits from President Trump’s crypto investments, which comprise a meme coin and a digital finance company.
According to the administration, Trump’s financial assets are held in a trust managed by his children.
CBDC Ban Bill Passes Amid Privacy Concerns
Lawmakers also approved a bill banning the creation of a U.S. central bank digital currency. Supporters say a digital dollar could threaten privacy by allowing the government to track financial activity.
Though the Federal Reserve has studied the concept, no launch plans exist. Trump had earlier signed an executive order halting any CBDC developments.
Ultimately, the GENIUS Act is likely to become law soon, establishing the first federal framework for stablecoins. The Clarity Act and CBDC ban still require Senate approval before becoming law.
Also Read: XRP and 7 Other ISO-Compliant Tokens are Outperforming the Market
