U.S. House of Representatives Approves Key Legislation Regulating Cryptocurrency

The U.S. House of Representatives on Thursday approved key legislation aimed at regulating cryptocurrency, including a bill establishing a framework for U.S.-dollar-pegged stablecoins. The bill, known as the Genius Act, passed with strong bipartisan support, reflecting years of lobbying by the digital asset industry for clear federal rules. The legislation requires stablecoin issuers to back their tokens with liquid assets like U.S. dollars and short-term Treasury bills, and to publicly disclose their reserves monthly to increase transparency and trust.

Key Takeaways:

• The Genius Act, which establishes a framework for U.S.-dollar-pegged stablecoins, passed the House with a vote of 308-122.
• The bill requires stablecoin issuers to back their tokens with liquid assets like U.S. dollars and short-term Treasury bills.
• Issuers must also publicly disclose their reserves monthly to increase transparency and trust.
• The Clarity Act, which aims to define when cryptocurrencies are securities or commodities, passed the House with a vote of 294-134.
• A bill banning the U.S. government from issuing a central bank digital currency (CBDC) also passed the House, citing Republican concerns about government surveillance and privacy.
• Summer Mersinger, CEO of the Blockchain Association and former CFTC official, called Thursday's votes a 'defining moment' for the industry.
• President Trump, who has courted industry support, has faced criticism from Democrats wary of potential conflicts of interest.

Statistics:

• 308-122: The final vote count for the Genius Act.
• 294-134: The final vote count for the Clarity Act.
• 134: The number of Representatives who voted against the Clarity Act.
• 122: The number of Representatives who voted against the Genius Act.

Sources:

• Bloomberg, photo by Tom Williams/CQ-Roll Call, Getty Images, 176221, [Bloomberg]