Republicans Push Crypto Bills Forward Amidst Party Debates
In a surprising show of unity, US Republican lawmakers and former President Donald Trump managed to navigate through some party disagreements to get three significant cryptocurrency bills through the House of Representatives last week. However, while this marks progress, not all of those bills are home free just yet.
A Victory for Stablecoins: The GENIUS Act
Last Thursday saw an intense day on the House, where just about all Republicans and over 100 Democrats got here together to vote in favor of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. This bill, geared toward regulating payment stablecoins, was signed into law by Trump inside a day. Such swift motion is rare within the political realm and underscores the importance attached to this laws.
Into the Senate: CLARITY and Anti-CBDC Bills
The other two pieces of laws—the Digital Asset Market Clarity (CLARITY) Act and the Anti-CBDC Surveillance State Act—still have more hurdles to beat. These at the moment are headed to the Senate, where further discussions await as each chambers prepare for the August recess.
Republicans dubbed last week as “crypto week,” emphasizing the necessity to bring regulatory clarity to the digital asset space. However, despite claims of bipartisanship, the controversy around these bills has not been entirely freed from political undercurrents. At the GENIUS Act signing, a majority of the attendees were Republicans or Trump allies, while some Democrats have raised concerns about Trump’s potential conflicts of interest as a consequence of his crypto ventures.
What Lies Ahead within the Senate?
Senate Republicans are expected to prioritize discussions around crypto market structure. They aim to ascertain guidelines for regulatory bodies just like the SEC and the CFTC and determine which tokens qualify as securities under US law.
CLARITY or Responsible Innovation?
On Tuesday, 4 Republican senators unveiled a draft of their very own crypto market structure proposal, constructing upon the CLARITY Act. This recent draft, called the Responsible Financial Innovation Act, suggests that the House’s previous efforts may need been a precursor to a more comprehensive Senate bill. Whether it is the CLARITY Act or this recent initiative, each bills need approval from each chambers to land on Trump’s desk.
Challenges for the Anti-CBDC Bill
The Anti-CBDC bill also faces a troublesome road ahead. Its passage within the House saw only two Democrats siding with Republicans. Reports indicate some Republicans initially stalled all three bills over fears that the GENIUS Act might inadvertently open doors to a US digital dollar.
Wyoming Senator Cynthia Lummis, leading the banking committee’s digital assets subcommittee, has proposed the Senate stay energetic throughout August to handle a few of Trump’s nominations. Her spokesperson mentioned she’s committed to advancing the president’s agenda during this time, which could include preparing for upcoming bill markups.
The CFTC Conundrum
Amidst the crypto bill discussions, the Senate has yet to make a decision on Brian Quintenz’s nomination as chair of the CFTC. Due to the absence of 1 Republican senator at a committee meeting on Monday, leadership postponed the vote on Quintenz.
John Boozman, Chair of the Senate Agriculture Committee, is optimistic a few vote before the August break, expecting party-line voting. Currently, only acting chair Caroline Pham and Kristin Johnson serve on the CFTC, each of whom are expected to go away by 2026. Quintenz’s confirmation could potentially leave the agency with 4 leadership vacancies, highlighting a necessity for swift motion.
