The US, under leadership of President Trump has seen quite a bit of developments with regards to crypto legislation. The implications of this are vast and will guide government’s overall approach to cryptocurrencies as well as how it is regulated. The Genius Act as well as the Clarity Act are two of these measures that will form part of this. The Genius Act provides for a regulatory framework for stable coins. These are digital assets with a value that is pegged to the value of the US dollar. Under the Clarity Act, many of the cryptocurrencies will be reclassified as commodities rather than securities.
Trump’s interesting new changes
U.S. President Donald Trump on Tuesday stepped in to broker an agreement among Republican lawmakers after a snag cast doubt on the fate of long-awaited cryptocurrency legislationย that would mark a major victory for the digital assets sector. A failed procedural vote in the House of Representatives earlier on Tuesday sent shares of crypto firms lower. But the Republican president said in a statement late on Tuesday that he was meeting in the Oval Office with 11 of 12 members of Congress needed to pass the legislation.
“After a short discussion, they have all agreed to vote tomorrow morning in favor of the Rule,” Trumpย said on his social media platform.ย House Republicans had billed this week as “Crypto Week,” and were keen to advance numerous pieces of legislation aimed at providing clarity to the digital asset industry and long-sought legitimacy to the sector. Crypto week or the week of 14 July 2025 was the period within which more focused efforts were put in place to promote the crypto policy. This would be done through three of the key industry-friendly bills.
Resolutions to some crypto matters
Several conservativeย Republicansย on Tuesday earlier joinedย with Democrats in blocking a procedural vote to allow consideration of three crypto bills as part of a dispute over how the measures should be packaged and considered. Shortly after that vote, House Speaker Mike Johnson told reporters that he planned to continue discussing the matter with members and hoped to vote on it again shortly. Shares of crypto-related stocks including Circle Internetย CRCL.Nย and Coinbase Globalย COIN.Ofell onย the newsย of the vote butย then pared losses.
American cryptocurrency exchange Coinbase Global Inc was founded in 2012 by Fred Ehrsam and Brian Armstrong. The company has more than 100 million users. It is the largest US based cryptocurrency exchange. As of 2024, it is also considered the biggest bitcoin custodian in the world. The House isย attempting to pass a series of crypto-related bills, most notably a bill that would establish a regulatory framework for stablecoins.
Changing legislation, changing digital landscape
Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1-to-1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly. That bill – and another the House is considering that would define when a crypto token is a commodity – would be a huge win for the crypto industry.
The House also was set to consider a bill that would prohibit the U.S. from issuing a central bank digital currency.ย Republicans say there is a risk this could give the government too much control over Americans’ personal finances. That bill has not been considered in the Senate and the Federal Reserve has not indicated a desire to develop a central bank digital currency.
CBDCs or Central Bank Digital Currencies would be digital currencies issued by government. These would mirror the overall value of the country’s fiat currency. It is aimed at enhancing overall financial inclusion as well as reducing transaction costs. Already implemented within Nigeria, the Bahamas as well as Jamaica, the US is still researching possible implementation of this as well as how it could potentially improve some of the existing financial systems.
GCN.com/Reuters