Advice
The United States just took a big step toward regulating digital money. In one busy week, the House of Representatives approved three major bills: the GENIUS Act, the Digital Asset Market Clarity Act, and the Anti‑CBDC Surveillance State Act. The GENIUS Act has also passed the Senate, and was signed into law on Friday July 18th. (The other bills now go to the Senate for debate, and might be voted on prior to the Congress’ August 1st recess.)
Supporters say the bills finally give stablecoins and other digital assets clear rules. Critics warn that some parts might go too far—or not far enough.
So what do these laws actually do, and how might they change the future of crypto in America?
The GENIUS Act Creates Guardrails for Stablecoins
The GENIUS Act focuses on a very specific part of the crypto world: stablecoins. These are digital tokens tied to the value of a traditional currency like the U.S. dollar. They’re popular for payments and trading because they’re designed to stay steady in value.
Under the new law, only “permitted payment stablecoin issuers” can offer these tokens in the United States. That means they must either be a regulated bank or a licensed nonbank company that meets strict federal standards. Every stablecoin must be backed one‑to‑one by safe assets like cash or U.S. Treasury bonds. Issuers also have to publish detailed reports about their reserves so people know their money is really there.
There’s another twist. Interest‑bearing stablecoins won’t be allowed. In other words, companies can’t offer stablecoins that pay users a yield like a savings account. Lawmakers argue that interest adds risk and could make stablecoins look too much like securities.
The rules don’t kick in overnight. Companies have up to 18 months to meet the new requirements, and some older stablecoins can keep circulating for three years before they’re phased out.
Proponents believe the GENIUS Act will bring trust to the stablecoin market. They say it strengthens the dollar by encouraging digital dollars backed by U.S. assets. But some crypto developers worry it favors large institutions and could squeeze out smaller innovators.
The Digital Asset Market Clarity Act Defines Who’s in Charge
The next bill, the Digital Asset Market Clarity Act, tackles one of crypto’s biggest headaches—regulatory confusion. For years, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have argued over how to classify digital tokens. Are they securities, like stocks? Or are they commodities, like gold?
This law draws clearer lines. It gives the CFTC more authority over cryptocurrencies that function like commodities, such as Bitcoin. Tokens that behave more like investments or shares of a company still fall under SEC oversight. By splitting these roles, lawmakers hope to remove the uncertainty that’s held back the industry.
Crypto firms say this clarity will help them innovate without fear of sudden enforcement actions. On the other hand, some consumer groups worry that dividing oversight could create loopholes that bad actors exploit.
The Anti‑CBDC Act Blocks a Federal Digital Dollar
The third bill is the Anti‑CBDC Surveillance State Act. CBDC stands for Central Bank Digital Currency, sometimes called “Fedcoin.” It’s a government‑issued digital dollar. Other countries, like China, are already experimenting with CBDCs.
This law makes it clear that the Federal Reserve can’t create a retail CBDC without explicit approval from Congress. Supporters say it protects Americans from potential financial surveillance. They argue that a government‑run digital dollar could let officials track purchases and control spending in ways that violate privacy.
Opponents of the bill see it differently. They think blocking a U.S. CBDC could make the country fall behind in the global race for digital money. Without one, America risks losing influence if foreign digital currencies become more widely used.
Still, the Anti‑CBDC Act reflects a growing mistrust of government involvement in personal finances. Privacy advocates welcomed the bill as a safeguard against what they see as creeping financial control.
Why Supporters Call This a Watershed Moment
For the crypto industry, these bills feel like long‑awaited validation. Stablecoin issuers finally know what’s required to operate legally. Exchanges and developers have a clearer sense of which regulator they’ll answer to. Investors get more transparency around what they’re buying.
Many also believe the GENIUS Act will help the U.S. dollar maintain its dominance. By requiring stablecoins to hold dollar‑backed reserves, the law could make them more widely accepted for payments, both at home and abroad. Some see this as a way to compete with China’s digital yuan without creating a Fedcoin.
Industry leaders welcomed the clear rules set by the legislation, ending years of confusion. Ji Hun Kim, CEO of the Crypto Council for Innovation, says the laws “replace uncertainty with confidence for entrepreneurs, the broader market, and consumers.”
Why Critics Say There’s Still Risk
Not everyone’s celebrating. Consumer advocates argue the GENIUS Act doesn’t include strong enough protections for everyday users. They fear people could still lose money if a stablecoin issuer mismanages its reserves or collapses before regulators step in.
Others warn that banning interest‑bearing stablecoins could stifle healthy competition. Some developers wanted to build safer alternatives to risky crypto lending platforms, but now they’re unsure if those products will fit the rules.
The Anti‑CBDC Act also drew fire from economists who believe a digital dollar might eventually be necessary. They say blocking the Fed limits America’s ability to modernize its payments system and respond to future financial crises.
And while the Clarity Act settles some questions, legal experts predict there will still be disputes over where certain tokens fit.
What Happens Next
The real test is still ahead. Federal agencies have to write the detailed regulations that bring these laws to life. That process could take months, and it may spark new debates.
Crypto markets reacted with cautious optimism. Prices of major tokens like Bitcoin and Ethereum rose slightly after the bills passed, signaling that investors see more upside than risk. Banks and payment companies are also exploring how they might issue stablecoins under the new rules.
Globally, the U.S. is now positioned as a leader in stablecoin regulation. But it’s also stepping back from the CBDC trend, which might give other nations an edge in shaping the future of money.
A New Chapter for Digital Finance
These three bills mark a turning point. They bring structure to a fast‑moving space that’s long been called the “Wild West” of finance. Whether you’re excited or skeptical, the GENIUS Act, the Anti‑CBDC Act, and the Digital Asset Market Clarity Act show that digital currency is no longer on the sidelines.
The road ahead will still have twists. Innovation won’t stop, and neither will the debates over privacy, competition, and control. But for the first time, there’s a federal framework guiding the future of stablecoins and crypto in the United States.
Sources
https://www.msn.com/en-us/money/markets/don-t-celebrate-crypto-week-yet/