Quote from Alex bobby on July 19, 2025, 3:08 AM

Crypto Breakthrough: US Passes First Major Bill to Regulate Digital Assets in Historic ‘Crypto Week’

In a landmark moment for the digital asset space, the United States has passed its first major federal legislation to regulate cryptocurrency, marking a significant win for the crypto industry and its advocates. The long-anticipated development took centre stage during what lawmakers and officials dubbed “Crypto Week,” a focused legislative push that saw three crypto-related bills come before the House of Representatives—one of which is now poised to become law.

A Historic First: Stablecoin Legislation Clears Both Chambers

The most consequential bill passed this week was the “Genius Act”, a stablecoin regulation bill that has already been approved by the Senate and is now awaiting President Donald Trump’s signature to become law. This bill sets out a comprehensive regulatory framework for stablecoins—digital assets that are pegged to stable reserve assets like the US dollar. These tokens have grown increasingly popular as a way to avoid the volatility often associated with other cryptocurrencies.

The Genius Act includes provisions for reserve requirements, regular audits, consumer protections, and compliance with anti-money laundering and sanctions laws. Issuers of stablecoins will now be mandated to hold sufficient reserves backing their tokens, a move intended to build consumer trust and ensure financial stability.

“Payment systems worldwide are undergoing a revolution,” said House Financial Services Chair French Hill, adding that the bill will strengthen American competitiveness while protecting consumers.

Treasury Secretary Scott Bessent echoed this sentiment, suggesting the law could help the stablecoin market grow into a $3.7 trillion industry by 2030. For the crypto industry, which has often operated in a legal grey area, this marks a defining step toward mainstream legitimacy.

A Broader Push for Market Clarity

Two other crypto bills were also passed in the House and are now headed to the Senate for consideration. The first aims to create a clear market structure for digital assets, defining which types of tokens should be regulated by the Commodity Futures Trading Commission (CFTC) versus the Securities and Exchange Commission (SEC).

Under this bill, "mature" blockchain tokens like Bitcoin would be treated as commodities, while more centralised or profit-sharing tokens may fall under securities law. This clarity is a long-awaited solution to the regulatory ambiguity that has plagued the sector and often driven companies to relocate outside the US.

The second bill takes a controversial stance by prohibiting the Federal Reserve from issuing a Central Bank Digital Currency (CBDC)—a form of digital cash backed directly by the government. Passed narrowly by a vote of 219-210, this measure reflects conservative concerns about privacy, surveillance, and centralised control over digital financial transactions.

Trump’s Crypto-Friendly Stance Shapes Policy

The passing of these bills represents a political and financial victory for the crypto industry, which invested heavily in the 2024 election cycle. Much of that support went to candidates, including President Trump, who has emerged as a vocal champion of digital assets. Trump has pledged to turn the US into the "crypto capital of the world," and this legislation moves the country closer to that goal.

Former House Financial Services Chair Patrick McHenry, now vice chair of crypto firm Ondo Finance, compared the passage of these bills to the securities reforms of the 1930s. “These bills will make the United States the centre of the world for digital assets,” he said.

However, not all responses were positive. Several Democrats criticised the legislation for excluding presidential financial interests from conflict-of-interest provisions. Notably, the Genius Act bans members of Congress and their families from profiting from stablecoins—but does not extend this restriction to the president and his family.

Reports show that President Trump and his family have major holdings in World Liberty Financial, a crypto firm that recently launched the stablecoin USD1. Trump reportedly earned over $57 million from token sales last year, and his crypto holdings are now estimated to be worth $1 billion, more than any single real estate asset in his portfolio.

Critics Sound the Alarm

Critics like Senator Elizabeth Warren argue that the bills create a regulatory framework that is too weak and could open the door to financial instability. “If this bill passes, it will allow Elon Musk and Mark Zuckerberg to issue their own money,” Warren said, warning against corporate control of digital currency infrastructure.

She and other opponents fear the legislation lacks necessary oversight and could lead to a future where private tech giants dominate what was once the domain of sovereign states.

Why Crypto Regulation Matters Now

For years, crypto firms in the US have struggled with regulatory uncertainty, with agencies like the SEC and CFTC often taking opposing stances. The Biden administration was accused by industry leaders of trying to regulate by enforcement rather than through formal laws—leading to fines, lawsuits, and a chilling effect on innovation.

The new legislation, especially the Genius Act, offers a transparent rulebook, and its passage signals that lawmakers are finally taking a proactive approach to digital asset governance. The goal is to protect consumers while fostering innovation and maintaining America's financial leadership in a fast-evolving global economy.

Final Thought

With the passage of its first major crypto regulation bill, the United States has taken a decisive step toward shaping the future of digital finance. Whether this ushers in a new era of innovation and stability—or raises fresh challenges—remains to be seen. But one thing is clear: crypto is no longer on the fringe. It's moving to the heart of global finance, and the U.S. wants to lead the way.

Conclusion

The passage of the Genius Act and the advancement of two additional crypto bills signal a turning point in US digital asset regulation. With bipartisan support and industry backing, the US is finally building the legal foundation needed for cryptocurrency to thrive. Whether you're a supporter or a skeptic, there’s no denying that the digital finance landscape has changed—and the US is staking its claim at the centre of it.

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The US has passed its first major crypto regulation bill, marking a turning point for the digital asset industry. Learn how the new legislation, backed by Trump, aims to legitimise stablecoins and reshape the future of cryptocurrency in America.