US Congress passes sweeping crypto reforms under Trump, with the Genius Act paving the way for stablecoin expansion and regulatory clarity, fueling Bitcoin’s rise past $123,000.
Washington’s Crypto Week Signals Seismic Shift in Industry’s Future
A flurry of pro-crypto legislation backed by President Donald Trump has sent shockwaves through the global digital asset market, as lawmakers in the United States moved decisively last week to reshape the regulatory landscape for cryptocurrencies. The suite of bills—dubbed the Genius, Clarity, and Anti-CBDC Surveillance State Acts—marks a watershed moment for the industry, potentially laying the groundwork for its mainstream acceptance and institutional adoption.
The most prominent among them, the Genius Act, was passed by the House of Representatives and signed into law by Trump on Friday. The legislation sets out a formal definition for stablecoins—cryptocurrencies pegged to fiat currencies like the US dollar—and enables a wider range of private firms to issue them.
“The Genius Act represents an important step toward establishing a clear regulatory foundation for the digital asset industry in the United States,” said Paolo Ardoino, Chief Executive of Tether, which oversees the world’s largest stablecoin with a market cap exceeding $100 billion.
He added, “Well-designed regulation is key to fostering innovation, protecting consumers and enabling broader adoption of blockchain technologies.”
Stablecoins are integral to the crypto economy, often serving as intermediaries for traders moving capital between digital assets. With over $250 billion already in circulation—almost entirely dollar-backed—the Genius Act may further entrench the greenback’s dominance in a future digital economy.
Trump’s Crypto Commitment
Trump’s personal and political investment in the crypto world has been well-documented. His presidential campaign has received tens of millions of dollars in crypto-linked donations, while his sons, Donald Jr. and Eric, help manage World Liberty Financial, which issues dollar-backed tokens. Trump and First Lady Melania Trump have also been associated with their own “memecoin” initiatives.
Now back in the Oval Office, Trump is accelerating his administration’s pro-crypto agenda. These legislative moves could unlock what many in the industry describe as its long-awaited “Big Bang” moment.
“Institutional adoption is definitely a milestone on [crypto’s] journey, and the change of pace and approach in the US is a big driver,” said Varun Paul, Senior Director at digital asset platform Fireblocks and former fintech head at the Bank of England.
Clarity and Controversy
Alongside the Genius Act, the Clarity Act passed through the House, aimed at reducing oversight from the Securities and Exchange Commission (SEC). The bill would shift primary regulatory authority to the Commodity Futures Trading Commission (CFTC), a body traditionally more aligned with institutional markets and considered more crypto-friendly.
Critics warn that this shift could weaken consumer protections. “The Clarity Act could leave retail investors more vulnerable than they are under the status quo,” said James Locke, head of government affairs at Morningstar.
If enacted by the Senate, the Clarity Act would also ensure that court rulings could not be used as precedent for regulating crypto firms—placing interpretive power solely in the hands of lawmakers.
Fed Under Fire
A third bill, the Anti-CBDC Surveillance State Act, also passed the House and directly targets the Federal Reserve. It would prevent the central bank from launching its own digital currency, citing privacy concerns and fears of expanded government surveillance. Trump’s renewed criticism of Fed Chair Jerome Powell suggests the bill is as much political as it is economic. While the Fed has not committed to creating a central bank digital currency (CBDC), the legislation aims to prevent future attempts.
Market Reacts as Bitcoin Hits Record High
Signs of the industry’s approval have been immediate. Bitcoin surged to a record high of $123,000 following the passage of the Genius Act, and the overall crypto market capitalization exceeded $4 trillion for the first time, according to CoinGecko.
“Institutional funds, which have been on the sidelines waiting for exactly this type of clarity, will flow into the space,” said Mark Palmer, analyst at investment bank The Benchmark Company.
The Road Ahead
Not all measures have cleared both chambers of Congress—several still await Senate approval—but the tone from Washington has clearly shifted. What was once viewed as a fringe financial movement may now be stepping into its long-anticipated mainstream moment.
Whether or not crypto truly “goes to the moon,” as its supporters have long proclaimed, one thing is certain: America’s regulatory foundation for digital assets has been laid.
