The U.S. House of Representatives will pass multiple crypto-focused bills this week which indicates a significant advancement toward mainstream regulatory acceptance. Republican leaders have named this legislative initiative “crypto week” because it contains the GENIUS Act which establishes stablecoin framework rules.
The bill receives bipartisan support because it demands stablecoins to maintain backing through U.S. dollar reserves and Treasury bill reserves. The bill requires companies to disclose their reserve holdings on a monthly basis.
The CLARITY Act works to establish official criteria which determine whether a crypto token should be classified as a commodity.
The industry views this legislation as a much-needed development which will bring legal clarity to the market and free up trapped capital. Bitfinex’s Jag Kooner stated that this regulatory move sends a signal to institutional investors.
The GENIUS Act has received approval from President Trump for signature if Congress passes it. Several Democratic members of Congress continue to oppose the bill because they believe it fails to protect against foreign-issued tokens and private stablecoins from technology companies.
Fintechs together with banks are developing strategies for stablecoin integration because they recognize that crypto regulation is entering a new phase.
