Genius & Clarity Acts Aim to Revive U.S. Crypto Industry

- New U.S. acts to introduce clear rules for stablecoins and digital assets. - Acts aim to reverse crypto talent flight, fostering U.S. innovation. On November 28, 2025, The Block reported on upcoming U.S. legislation: the Genius and Clarity Acts. These acts aim to create a more stable regulatory framework for the cryptocurrency industry by clearly defining oversight roles for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). By establishing a solid foundation for innovation and growth, the legislation encourages crypto projects and talent to return to the U.S. The “Guiding and Establishing National Innovation for U.S. Stablecoins Act” (GENIUS Act) became law on July 18, 2025. This act focuses specifically on stablecoins, requiring their issuers to maintain a one-to-one backing with assets. Additionally, stablecoin issuers must produce monthly financial disclosures, adhere to rigorous audit standards, and comply with the Bank Secrecy Act to prevent money laundering. These measures aim to create transparency, enhance consumer protection, and build trust in the use and issuance of stablecoins in the U.S. financial system. Meanwhile, the “Digital Asset Market Clarity Act” (CLARITY Act) addresses broader digital asset market issues. The House of Representatives passed the act on July 17, 2025, and the Senate is currently reviewing it. The legislation seeks to establish clearer distinctions between securities and commodities in the crypto sector, delegating regulatory responsibility based on this classification. Under the CLARITY Act, a digital asset that achieves sufficient decentralization can transition from an SEC-regulated security to a CFTC-regulated commodity. This framework aims to resolve existing ambiguities and streamline the regulatory pathway for cryptocurrencies. A key motivation for this legislation is to counteract the outflow of crypto businesses and professionals from the U.S. market, which has been driven by regulatory uncertainty in recent years. By introducing clear, predictable guidelines, the Genius and Clarity Acts aim to foster innovation while ensuring consumer protection and market integrity. If implemented as intended, this regulatory overhaul could bolster the U.S.’s position as a global leader in the evolving landscape of digital finance.