The U.S. House of Representatives cleared a major hurdle on July 16 by voting 215–211 to move two major crypto bills, GENIUS and the Digital Asset Market Clarity Act, closer to becoming law. These bills would define how stablecoins and other digital assets operate under federal rules.
The legislation sets up both bills for votes later this week. Should they be passed, the GENIUS bill goes directly to President Donald Trump. It passed through the Senate earlier this year. Clarity still needs approval from both houses.
GENIUS Bill Sets Rules for Stablecoins
The GENIUS bill lays out specific rules for stablecoins, which are digital coins that are tethered to a traditional money value. Its authors modeled it to give guidance for innovation without having the Federal Reserve develop a central bank digital currency for citizens to use directly. This was the origin of a previous Republican conflict.
Consistency calls for broad guidelines for all digital assets. It establishes roles for the Securities and Exchange Commission and the Commodity Futures Trading Commission. Lawmakers aim to establish clear boundaries, draw a limit on ambiguity, and avert overlapping regulations.
No Democrat supported the procedural vote. Republicans rallied after a Tuesday setback, when some members of the party voted against the same motion. Tensions arose after Reps. Marjorie Taylor Greene and others became uncomfortable with the manner that the GENIUS bill treats the topic of central bank digital currencies.
Greene Switches Vote After CBDC Deal
Greene voted no early but came back after agreeing to reconsider the later CBDC language. Republican leaders promised that subsequent refinements could beef up safeguards against a digital dollar introduction from the Fed. House Democrats, on the other hand, warned against passing either bill.
Rep. Maxine Waters and others panned the plans for being too laissez-faire towards the cryptocurrency market and not protective enough. She called them risky and claimed lawmakers were handing Trump control of crypto. In spite of the opposition, House Republicans touted the vote a big win for what they dubbed “Crypto Week.”
They will vote on the bills individually before the week closes. If passed, GENIUS can be signed into law soon. Clarity and the anti-CBDC bill are still pending Senate approval before being forwarded to the president.
