In July 2025, the U.S. Congress advanced a landmark package of legislative measures aimed at establishing a comprehensive federal framework for the regulation of cryptocurrencies and stablecoins. Two key bills—the GENIUS Act and the CLARITY Act—have emerged as the foundation of this effort, each targeting distinct aspects of digital asset oversight. These initiatives reflect a response to the rapid growth of the crypto market, recent high-profile failures, and sustained industry lobbying. Collectively, they aim to enhance market stability, protect investors, and foster responsible innovation. The relevance of these actions is hard to overstate for the digital asset market, as the U.S. House of Representatives dubbed the week of July 14 as “Crypto Week.”

While the bills adopt different regulatory approaches, their relevance underscores two converging trends: first, the continued expansion of crypto assets and their increasing relevance to businesses beyond the digital asset sector; and second, the growing recognition of the need for clear, enforceable regulation to safeguard investors and consumers. Together, these developments signal a significant shift in how digital assets will be governed in the U.S. moving forward. 

GENIUS Act: Federal Stablecoin Regulation

• Status: Signed into law by President Trump on July 18, 2025 after bipartisan passage in both chambers of Congress. 
• Support/Opposition: Largely supported by Republicans, moderate Democrats, the crypto industry, and banking regulators; opposed by progressive lawmakers and consumer advocates citing loopholes, enforcement concerns, and corruption concerns.
• Key Takeaways: Establishes the first federal regime for payment stablecoins, granting regulatory clarity to a $250 billion industry that is likely to grow significantly. This act requires 100% reserve backing in U.S. Dollar or short term government-backed assets, monthly disclosures, requires issuers to become regulated by federal or state regulators (based on size), and implements anti-money laundering (AML) and know-your-customer (KYC) requirements.

CLARITY Act: Digital Asset Market Structure

• Status: Passed the House with bipartisan support in July 2025; awaits Senate consideration.
• Support/Opposition: Supported by lawmakers from both parties and crypto industry groups; opposed by consumer advocates and some lawmakers who argue it may weaken investor protections and derail established SEC oversight of non-crypto assets.
• Key Takeaways: Clarifies that the CFTC, not the SEC, holds jurisdiction over most digital assets, but establishes a clear anti-fraud and anti-manipulation oversight role for the SEC. The CLARITY Act allows tokens to transition from securities (under the SEC’s jurisdiction) to commodities (under the CFTC’s jurisdiction) when the blockchain is mature¹ and reinforces that stablecoins are regulated under the GENIUS Act.

Implications For Financial Institutions, Fintech Services, And Traditional Businesses

The passage of the GENIUS Act and advancement of the CLARITY Act signal a significant shift in the regulatory landscape for digital assets in the United States. For the first time, financial institutions and others in the crypto space are able to operate with clear(er) regulatory guidance regarding oversight and control. This legislation is important for providing a framework necessary to build trust for businesses and payment services providers outside the crypto space to embrace crypto assets as part of non-crypto businesses. These acts provide a clearer framework for engaging with stablecoins and other digital assets, opening the door for banks and regulated entities to issue, hold, or partner with stablecoin issuers under defined federal and state regimes. This clarity may encourage more traditional financial institutions to explore new fintech services, such as stablecoin-based payments, custody, and settlement solutions. Over the next 5-10 years, these changes will also allow businesses and individuals faster access to funds and simplified global transactions. 

Businesses across a range of industries should begin considering how stablecoins and digital assets might be integrated into their operations. The new legal clarity makes it more feasible for companies to use stablecoins for payments, cross-border transactions, payroll, and treasury management. Businesses that operate internationally, rely on fast settlement, or serve digital-native customers may find particular advantages in adopting stablecoin solutions. E-commerce platforms, fintech companies, remittance providers, and even traditional retailers could benefit from lower transaction costs and faster settlement times.

But with significant regulatory change also comes regulatory questions. Despite the clarity offered by the CLARITY and GENIUS Acts, there can still be confusion about whether a crypto project or stablecoin falls under SEC, CFTC, or banking rules. These new rules also contain significant disclosure requirements. New regulations mean new rules for registration, reporting, anti-money laundering (AML), and know-your-customer (KYC) checks. While many well-established crypto participants already have these controls in place, a broadening market means that new players must catch up to meet existing standards.

The GENIUS Act designates every permitted payment-stablecoin issuer as a “financial institution” under the Bank Secrecy Act. As a result, issuers should establish AML programs tailored to their specific risk, including written policies and internal controls, independent testing, ongoing employee training, and designation of an AML officer with direct Board or senior-management reporting lines. Other businesses engaging in crypto-related transactions should also assess the associated risks and adopt appropriate controls to mitigate them. When considering such transactions, businesses should be prepared to ask hard questions of themselves, their suppliers, and seek external guidance if needed, to ensure they have the right safeguards in place.

What Should Businesses Keep in Mind?

The GENIUS Act and CLARITY Act represent a watershed moment for digital asset regulation in the United States, offering long-awaited clarity that enables financial institutions, fintech services, and traditional businesses to explore crypto integration with greater confidence. These reforms lay the groundwork for responsible innovation, faster payments, and a new arm for the broader financial market. 

However, as the market matures under heightened regulatory scrutiny, it is essential for businesses to implement robust compliance frameworks and maintain high standards of transparency. Recent controversies, such as those surrounding the Trump family’s crypto ventures, underscore the reputational and legal risks that can arise when political, financial, and technological interests intersect. 

As the regulatory landscape evolves, companies should stay proactive in assessing exposure, ensuring alignment with AML/KYC obligations, and preparing for increased enforcement. The opportunity is significant, but so is the need for diligence.
 

¹ The term ‘mature blockchain system’ means a blockchain system, together with its related digital commodity, that is not controlled by any person or group of persons under common control.