WASHINGTON, United States (US): US lawmakers are set to pass sweeping legislation that could give the crypto industry long-awaited legitimacy, underscoring a shift in Washington’s stance following President Donald Trump’s embrace of digital assets.
The House is expected to vote this week on three key bills, including one that governs stablecoins – cryptocurrencies pegged to assets like the US dollar.
If passed, it would go to Trump for signing, potentially extending the dollar’s dominance into the crypto space.
Dubbed the GENIUS Act, the stablecoin bill mandates issuers to hold reserves equal in value to their coins and empowers US banking regulators to supervise them.
Stablecoins, seen as low-volatility digital assets, could offer dollar-backed alternatives in regions with unstable local currencies.
The move follows years of scepticism under the Biden administration, which kept crypto at arm’s length.
But Trump has reversed course, launching crypto ventures such as World Liberty Financial, which netted him over USD57 million, and backing initiatives like a federal ‘Strategic Bitcoin Reserve’.
He’s also appointed crypto advocate, Paul Atkins, to lead the SEC.
A second bill – the CLARITY Act – aims to define regulatory boundaries between the SEC and the Commodity Futures Trading Commission (CFTC), offering clearer oversight of digital assets.
“These are game changers,” said Gerald Gallagher, General Counsel at Sei Labs. “GENIUS and CLARITY finally give investors the certainty they’ve lacked.”
A third proposal, the Anti-CBDC Surveillance State Act, seeks to block the issuance of a US central bank digital currency.
Republicans argue a digital dollar would erode financial privacy and expand federal control.
All three bills require Senate approval before landing on Trump’s desk. – AFP
