The US House of Representatives has passed a major piece of legislation aimed at regulating stablecoins — digital tokens pegged to traditional currencies like the US dollar — marking the first comprehensive crypto regulation to clear Congress. As reported by the Financial Times, the bill, known as the Genius Act, passed by a bipartisan vote of 308 to 122 and now heads to President Donald Trump’s desk for signature.
The Genius Act paves the way for US banks to issue their own digital assets, providing long-awaited regulatory clarity for an industry that has been embroiled in legal uncertainty and political contention. It represents a significant victory for the crypto industry, which mobilized aggressively during the 2024 election cycle. Following intense scrutiny and legal action from the Biden administration — including lawsuits by the Securities and Exchange Commission against major platforms such as Coinbase and Binance — crypto supporters poured hundreds of millions of dollars into political campaigns. A super PAC called Fairshake raised $260 million to support pro-crypto candidates, many of whom are now driving policy from within Congress.
In addition to the Genius Act, the House also passed the Clarity Act by a vote of 294 to 134. This bill establishes criteria for determining whether a digital asset should be treated as a security — a key distinction that defines whether the SEC or the Commodity Futures Trading Commission will regulate it. The Clarity Act must still pass the Senate, but the House vote underscores growing momentum behind a more defined and permissive crypto regulatory framework.
A third bill passed by lawmakers on the same day prohibits the Federal Reserve from issuing a central bank digital currency (CBDC), drawing a clear line between private-sector innovation and state-run digital money. This prohibition reflects skepticism among Republicans and some Democrats about potential government overreach in the financial system.
French Hill, the top Republican on the House Financial Services Committee, described the package of bills as a foundational moment. “This is about protecting American consumers, protecting investments, bringing capital back to the United States, and making the US a fintech leader in payments and in digital assets,” Hill said.
President Trump’s administration has championed a more favorable stance on cryptocurrency. His family has deep financial ties to the sector, including the launch of their own memecoins and crypto ventures like World Liberty Financial. Trump Media & Technology Group, which operates the Truth Social app and is controlled by the Trump family, has outlined plans to raise billions of dollars to invest in bitcoin. This marks a stark reversal from Trump’s earlier position in 2019, when he publicly criticized cryptocurrencies as “based on thin air.” During his 2024 campaign, Trump pledged to make the US the “bitcoin superpower,” a promise his allies say is now taking shape.
Major US banks have welcomed the Genius Act as a long-overdue step toward equal footing in the fast-growing digital asset sector. JPMorgan Chase CEO Jamie Dimon recently confirmed that the bank plans to be involved in both its proprietary deposit coin and in broader stablecoin offerings. Jane Fraser, CEO of Citigroup, said her bank was “enthusiastic” about the legislation, noting that it finally allows traditional financial institutions to compete in the space without facing regulatory barriers. “Up until now, it has been hard for us to participate on a level playing field,” Fraser told the Financial Times.
Bank of America CEO Brian Moynihan also expressed interest in entering the stablecoin market but warned that market demand remains uncertain. Nevertheless, the pressure is mounting. Retail giants such as Uber have reportedly been exploring the creation of their own stablecoins in an effort to bypass traditional payment networks like Visa and Mastercard.
While Republicans largely praised the legislative victories, not all lawmakers were in support. Maxine Waters, the top Democrat on the House Financial Services Committee, criticized the Clarity Act in particular, warning that it “plants the seeds for the next financial crisis.” Waters also accused Republicans of advancing legislation that benefits Trump’s financial interests. “A vote for HR 3633 is a vote to give Trump the pen to write the rules that will put more money in his family’s pocket,” she said.
Scott Bessent, the US Treasury Secretary under Trump, celebrated the House’s actions. “President Trump promised to make America the ‘crypto capital of the world,’” Bessent posted on X. “@HouseGOP’s actions today to pass the CLARITY Act and send GENIUS to the President’s desk keep that promise.”
With the Genius Act on its way to becoming law and further crypto legislation gaining momentum, the United States appears to be entering a new phase in digital finance — one increasingly shaped by the political and financial priorities of the Trump administration and its allies.
