3 Things Crypto Investors Need to Know About the Genius and Clarity Acts Making Their Way Through Congress This Week

by

Just one day prior to the commencement of “Crypto Week” in Congress, the value of Bitcoin (an increase of 1.13%) surpassed its previous record high, reaching over $123,000. This underscores the level of excitement among market players regarding the upcoming crypto legislation.

During Crypto Week, the U.S. House of Representatives is set to discuss crucial legislations related to digital currencies, specifically the Genius Act and the Clarity Act. Here are some essential details about them.

Legitimacy for stablecoins

Let’s begin by discussing the Genius Act, a bill that has just been approved in the Senate and is on its way to the White House for President Donald Trump’s final approval. This act aims to clarify the guidelines regarding stablecoins, a type of digital currency.

Stablecoins are a type of digital currency that maintains a fixed value equal to that of traditional currencies, such as the U.S. dollar, and are sometimes likened to “digital dollars.” They have experienced significant growth in popularity and have expanded into a $250 billion market. Due to their rapid expansion, some experts predict they could become an industry worth $2 trillion within just a few years.

Until now, there has been no definitive guidance on who can create them, who can invest in them, and what kind of backing they should have. However, once the Genius Act is passed by the House and these issues are resolved, it’s expected that the number of private companies eager to launch their own dollar-backed stablecoins will significantly increase. As a matter of fact, Amazon and Walmart are among the businesses rumored to be considering the introduction of new stablecoin offerings.

Boost in institutional demand for cryptocurrencies

This week, I’m observing the discussion surrounding the Digital Asset Market Clarity Act, often called the Clarity Act. As the title implies, this bill aims to bring clarity about the creation, purchase, and regulatory oversight of digital assets. In terms of classification, it falls under market structure regulation, much like the new Mica (Markets in Crypto-Assets) legislation in Europe.

It appears that in the current scenario, there will be two major regulatory bodies for cryptocurrencies: the Securities and Exchange Commission (SEC), who has been the primary regulator so far, and the Commodity Futures Trading Commission (CFTC). This is crucial information because the SEC has traditionally maintained a cautious stance towards cryptocurrencies. However, given the likelihood of shifts in the SEC’s priorities under the Trump administration, a more lenient approach towards crypto seems imminent.

Loading widget...

In essence, the Clarity Act could potentially increase interest in all digital assets, not just Bitcoin, among institutions. This is because publicly traded companies might find it less daunting to include digital assets on their financial statements. Furthermore, asset management firms might become more inclined to provide Bitcoin and other cryptocurrency-related services to their clients.

Unlike the Genius Act which has already been proposed, the Senate hasn’t yet presented their own version of the legislation. They aim to have it ready by the end of Crypto Week, but the President’s signature on it won’t happen before September at the earliest. This delay is due to Congress being close to its summer break, and there may not be enough time left in August to complete all the necessary steps.

Merger of traditional finance with crypto finance

Essentially, the Genius Act and the Clarity Act, when enacted together, are set to blend conventional banking with decentralized finance (DeFi). This fusion is expected to ignite a surge of innovative financial solutions for individual investors, many of which will incorporate Bitcoin and other digital currencies. Among these novel opportunities will be an array of crypto-lending services.

If that occurs, DeFi might regain its popularity as a trendy term, similar to how it was during the last cryptocurrency bull market surge when Ethereum gained significant recognition. However, this time, the financial sector, particularly Wall Street, is actively supporting the expansion of DeFi. In certain instances, they are even spearheading the movement, particularly in the area of tokenization – the process of converting real-world assets into digital assets on the blockchain.

Don’t forget about tariffs

Observing the current trends, it seems quite promising that the crypto market might flourish significantly in the latter half of 2025. The escalating price trajectory of Bitcoin hints at potential growth across various cryptocurrencies come autumn.

Make sure not to overlook the issue of tariffs. As Crypto Week unfolds, it’s important to remember that there are increased tariffs being imposed on countries such as Canada, Mexico, Brazil, and the European Union. These tariff deadlines continue to be extended, but eventually, reality will catch up – the tires are going to meet the road.

Before diving into cryptocurrencies this summer, ensure you’re well-aware of the associated risks. For new crypto laws to significantly impact the game, Congress must clarify issues related to tariffs and international trade first.

Read More

2025-07-18 01:53