The United States hit pivotal regulatory milestones in digital asset governance over the last week. A landmark bill is now law, even as further legislation advances through Congress.
All these signals indicate Washington’s intention to establish a clear crypto framework and maintain U.S. dominance in the digital asset space for the foreseeable future. If everything goes according to plan, it should be much easier for US investors to gain crypto exposure with less risk.
GENIUS Act Exempts Stablecoins from Securities Classification
Signed into law on July 18, the GENIUS Act establishes the first federal regulatory framework for stablecoins in the United States.
The crypto legislation limits stablecoin issuance exclusively to approved entities, now formally designated as Permitted Payment Stablecoin Issuers (PPSIs). These authorized organizations face strict reserve mandates when minting or distributing dollar-pegged stablecoins domestically. Issuers must back every circulating token 1:1 with cash or short-term government securities. These reserves must also be segregated from corporate funds, with independent monthly audits ensuring compliance.
But more importantly, the bill exempts stablecoins from securities classification, enabling banks and payment providers to integrate them without SEC-related legal uncertainties.
CLARITY Act to End Ambiguity Around Crypto Assets
The CLARITY Act, approved by the House on July 17 and now pending Senate review, would draw sharp jurisdictional lines for financial regulators.
For the first time, digital assets such as Bitcoin (BTC) and Ethereum (ETH) will be assigned to either the U.S. Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC), based on specific criteria. No more ambiguity.
Centralized crypto projects that meet the Howey Test criteria (indicating they are securities) will fall under SEC jurisdiction, while the CFTC will regulate decentralized assets, such as Bitcoin and Ethereum.
The bill also imposes biannual disclosure mandates, compelling platforms and token issuers to publish trading volumes, ownership distribution, and reserve holdings, measures intended to enhance market transparency.
Pending Legislation: Bitcoin and Tax Reform
The BITCOIN Act (S.954), introduced by Senator Cynthia Lummis in March, remains under committee review but signals growing federal interest in Bitcoin’s infrastructure.
The proposal would establish a national Bitcoin reserve, empowering the Treasury to acquire one million Bitcoins over a five-year period, while holding them for a minimum of 20 years. It also protects the rights of locals and businesses to own, transact and self-custody Bitcoin without any form of government interference.
In a parallel effort, Senator Lummis proposed the Digital Asset Tax Reform Act (S.2207) in June, which seeks to simplify cryptocurrency taxation.
The bill would exempt minor transactions from reporting requirements (under $300 per transaction) and defer taxes on mined or staked assets until they are converted to fiat currency—a change that could alleviate compliance burdens for retail investors and small-scale miners.
New Bills Primed to Unlock New Investment Opportunities
These legislative efforts – both passed and pending – finally address the regulatory ambiguity that has long plagued U.S. markets.
The GENIUS and CLARITY Acts could drive an increasing institutional participation in the sector. At the same time, the BITCOIN Act and subsequent tax reforms could open the door to further local Bitcoin adoption, as more Americans would be able to transact freely with Bitcoin and build crypto products.
And while the legislation doesn’t solve every difficulty, it does represent a significant milestone in bringing structure to this growing industry.
As might be expected, the crypto market has been on fire over the last month. Bitcoin hit a new all-time high on July 14, while Ethereum is up a staggering 55% over the last 30 days.
