US crypto regulation

US crypto regulation: breakthrough with CLARITY and GENIUS Act

On July 17, 2025, the US House of Representatives passed the CLARITY Act and GENIUS Act set a milestone in crypto regulation. These laws create a comprehensive legal framework for digital assets and cryptocurrencies for the first time. Stablecoins in the USA. During the CLARITY Act for legal certainty for Digital Commodities establishes the GENIUS Act Strict requirements for Payment Stablecoins and their issuers.

The digital dollar ban and other components

A third key element of the legislative package is the digital dollar ban, which prohibits the development of a US central bank digital currency (CBDC) is to be restricted. The Senate is currently discussing the following point:

• Prohibition and definitionThe Federal Reserve is not allowed to set up a CBDC* platform for public use. Only wholesale solutions for banks would be permitted under strict conditions.
• Foundations of the debateOpponents point to data protection and sovereignty concerns, while supporters argue that a CBDC increases financial inclusion.
• Effects on the Federal ReserveRestriction to interbank transactions could slow down innovation in this area.

$1

Market reaction and price performance

After the two laws were passed, the crypto market reacted with a remarkable rally. The price of Bitcoin broke through the USD 120,000 mark for the first time, while numerous altcoins recorded double-digit percentage gains. This phenomenon can be attributed to increased confidence in a clear legal framework that offers institutional investors new security. At the same time, strong trading volumes and increased liquidity ensured that exchanges such as Coinbase reported record sales.

Important observations:

• The US dollar exchange rate of the Ethereum rose by over 18 % as the blockchain benefits as the basis for many tokenized assets.
• Stablecoins such as USDC and USDT gained market share as investors shifted into safe havens in the short term.
• The increased demand for on-chain transactions led to temporarily higher gas fees on Ethereum Layer 1.

Outlook: Senate debate and next steps

Even though the House of Representatives has already given its approval, the Senate is now deciding on possible amendments. Experts expect that the vote could take place in late summer. Should the Senate make adjustments, the following points could be discussed:

1. Extension of CFTC jurisdictionMore transparency requirements for issuers of digital assets.
2. Relaxation of the digital dollar banModels for retail CBDC pilots in selected states.
3. Supplementary anti-money laundering rules (AML)Tighter KYC requirements for onboarding new customers.

Companies and investors should prepare now: Stock exchanges need to strengthen internal compliance teams while investors adjust portfolios for possible regulatory corrections.

Source: Reuters

Reactions from the industry and politics

The adoption met with a mixed response:

• Circle praises the legal framework and welcomes the 1:1 coverage obligation for Stablecoinsbut sees potential for improvement in the licensing processes.
• Coinbase announces cooperation with banks in order to implement the new requirements efficiently.
• Consumer advocates criticize that the digital dollar ban prevents innovation and negates the advantages of a CBDC.

Source: Reuters

Comparison with the EU MiCA Regulation

While the USA is creating nationwide standards for the first time with the CLARITY and GENIUS Act, the EU has had the MiCA Regulation (Markets in Crypto-Assets). Key differences and similarities:

• Regulated asset classesMiCA distinguishes between asset-referenced tokens and e-money tokens, while the CLARITY Act defines "digital commodities" and the GENIUS Act "payment stablecoins".
• Responsible authorities: In the EU, national regulatory authorities, together with the ESMA The SEC and CFTC are separately responsible for implementation in the USA.
• Technical standardsMiCA requires issuers to disclose smart contracts and conduct audits; the GENIUS Act focuses more strongly on reserve transparency.
• Sandbox modelsMany EU states offer regulatory sandboxes for pilot projects; in the USA, comparable programs are still being planned at federal level.

Source: FAZ

Recommendations for stakeholders

For stock exchanges and issuers:

• Establishment of specialized compliance departments for SEC and CFTC requirements.
• Implementation of automated reporting tools for the monthly disclosure of trading volumes and reserves.
• Proactive participation in regulatory sandboxes to test pilot projects.

For investors and institutional investors:

• Portfolio diversification taking into account Digital Commodities vs. securities.
• Use of Cold wallets for long-term investments.
• Ongoing monitoring of the Senate debate and adaptation of the strategy in the event of possible legislative changes.

For developers and FinTechs:

• Compliance with high security standards for smart contracts and wallet infrastructure
• Creation of tools for reserve audits and transparency reports.
• Cooperation with major banks to obtain Stablecoin-licenses.

Conclusion

The adoption of the CLARITY Act and GENIUS Act marks a turning point in US crypto regulation. With clear definitions, strict disclosure and reserve requirements, legal certainty for digital commodities and stablecoins is created for the first time. The digital dollar ban, on the other hand, is slowing down the introduction of a retail CBDC, but remains dynamic in the Senate debate.

In the long term, all market participants will benefit from a more stable and transparent environment that promotes innovation and minimizes risks. It is now a matter of waiting for the specific regulations and adapting internal processes accordingly.

FAQ on US crypto regulation

What does the CLARITY Act regulate in the USA?

The CLARITY Act creates a uniform legal framework for so-called Digital Commodities like Bitcoin. It makes a clear distinction from securities and defines which digital assets do not fall under the jurisdiction of the SEC, but rather the CFTC fall. The aim is legal certainty for developers, investors and stock exchanges.

---

What does the GENIUS Act mean for stablecoins?

The GENIUS Act regulated Payment Stablecoins comprehensive. It obliges issuers to 1:1 coverage of the issued tokens with reserves, requires monthly transparency reports and sets licensing requirements. The law is intended in particular to strengthen the confidence of institutional investors and prevent manipulation. → What is a stablecoin?

---

What exactly does the digital dollar ban mean?

The legislative package prohibits the Federal Reservea CBDC for public use to develop. Only so-called Wholesale CBDCs for interbank transactions. According to critics, the measure is intended to secure the financial freedom of citizens. → What is a CBDC?

---

Why was a US CBDC restricted by Congress?

The Members of Parliament lead Data protection and monitoring concerns in the field. A publicly usable CBDC could theoretically be misused for total financial control. However, supporters criticize that this would sacrifice important opportunities for innovation.

---

What role does the CFTC play in the new regulation?

The Commodity Futures Trading Commission (CFTC) is being given a stronger role in the monitoring of digital commodities. In future, it will develop clear test criteria and increase market transparency - similar to traditional commodities.

---

How does the CLARITY Act distinguish between digital assets?

The CLARITY Act defines so-called Digital Commodities as assets that do not fall under the criteria of the Howey test and therefore do not qualify as a security. Tokens with decentralized governance, open code base and functional use are included.

---

What is a payment stablecoin according to US legislation?

A payment stablecoin is a digital token that linked to the US dollar or another currency value and serves as a means of payment. The GENIUS Act requires a complete Cover with secure reserve assets.

---

What impact will the new laws have on Bitcoin & Co.

The new rules create Legal certaintywhich is motivating institutional investors to invest more heavily in Bitcoin and other cryptocurrencies. As a result, the BTC price rose sharply and Ethereum and stablecoins also recorded significant growth.

---

Why did the Bitcoin price rise after the laws were passed?

The adoption signals a Pro-crypto stance of the USAwhich creates trust. In particular, the classification of Bitcoin as a digital commodity by the CLARITY Act led to stronger institutional demand.

---

Which stablecoins benefit most from the GENIUS Act?

USDC and USDT were able to gain market share. Both issuers have already established high transparency standards, which is why investors consider these stablecoins to be particularly compliant.

---

Why are higher gas fees possible following regulatory measures?

The increased demand for transactions - particularly on Ethereum - led to a temporary increase in gas chargesas the blockchain was used as the basis for tokenized assets and transparent stablecoin settlements.

---

How did exchanges like Coinbase react to the new legislative package?

Coinbase announced new partnerships with banks in order to efficiently implement regulatory requirements. In addition, an internal compliance task force was formed in order to be prepared for future government reporting obligations.

---

How does Circle rate the new US stablecoin rules?

Circlethe issuer of USDC, welcomes the new rules and the 1:1 coverage requirement. At the same time, however, the company is calling for Simplified license processesso as not to stifle innovation.

---

What are the biggest criticisms of the digital dollar ban?

Consumer advocates argue that the Blockade of a CBDC could lead to a step backwards in innovation. Socially disadvantaged groups in particular could benefit from a state-regulated digital dollar - for example through better inclusion in the financial system.

---

How does the US approach differ from the EU MiCA Regulation?

The MiCA Regulation in the EU differentiates more strongly between token types and attaches great importance to transparency and technical security checks. The USA, on the other hand, focuses more on Economic classification and Reserve obligations for stablecoins.

---

What does the 1:1 coverage obligation for stablecoins mean?

It requires that each stablecoin issued is backed by a US dollar or equivalent reserve. The aim is to reduce systemic risk and protect users from liquidity bottlenecks or insolvency.

---

How likely is a retail CBDC in the USA in the future?

In the short term, a CBDC rather unlikely for consumers. In the long term, however, the Senate could decide to relax the rules, for example through pilot programs at state level - the debate is still ongoing.

---

What technical requirements apply to issuers under the GENIUS Act?

The GENIUS Act stipulates: Regular disclosure of reservesuse of secure smart contracts, transparency reports and the Licensing with a competent US authority. Violations should be subject to sanctions.

---

What anti-money laundering (AML/KYC) requirements could still follow?

Under discussion is a Extension of KYC obligations onboarding new customers on crypto exchanges and additional reporting obligations in the event of suspicious cases. Wallet operators could also be held more accountable in future.

---

What should investors specifically consider in the course of regulation?

Institutional and private investors should Rethinking portfolioslegally secured coins and rely on custody solutions such as Cold wallets pay attention. It is also advisable to keep a watchful eye on the ongoing Senate debates.

---

How can a stock exchange comply with the new regulations?

Crypto exchanges should internal compliance departments implement automated reporting tools and actively participate in sandbox programs. Cooperation with banks can help to better implement regulatory requirements.

---

What are regulatory sandboxes and what could they look like in the USA?

Regulatory sandboxes are test environments in which new business models are tried out under supervision. Already commonplace in the EU, the CLARITY/Genius package also intends to introduce them in the future. be established at the federal level in the USA.

---

Why is the Senate vote on the legislative package still crucial?

Although the House of Representatives has already given its approval, the US Senate still to introduce amendments. Rejection of individual sections is also possible. The final vote is expected in late summer 2025.

---

What could an extension of CFTC jurisdiction achieve?

It would Making regulation more efficientas digital commodities could be examined and approved directly under one roof. The CFTC is considered to be more innovation-friendly than the SEC.

---

What long-term opportunities do CLARITY and GENIUS offer for the crypto industry?

The legislative package could Starting signal for a new era of crypto adoption in the USA The new challenges are: more trust, more institutional participation, greater liquidity - and ultimately a clearer global role model vis-à-vis the EU and Asia.