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In a historic and fast-paced legislative sprint dubbed “Crypto Week,” U.S. lawmakers advanced three major bills aimed at bringing long-awaited regulatory clarity to the digital asset industry: the GENIUS Act, the CLARITY Act, and the Anti-CBDC Act. By the end of the week, one of these measures, the GENIUS Act, had already been signed into law, marking the first time comprehensive federal crypto legislation has made it onto the books. Together, these bills represent a significant shift in U.S. crypto policy; one many in the industry regard as overdue.
After years of regulatory ambiguity marked by inconsistent agency interpretations, high-profile enforcement actions, and stalled proposals, 2025 appears poised to be a breakthrough year for digital asset legislation. “2025 is set to be a pivotal year for digital asset legislation,” stated Senator Bill Hagerty (R-TN) as the House prepared to vote, describing the bills as “vital to ensuring America is at the forefront of innovation in the digital asset space”. Indeed, the House’s Crypto Week delivered more progress in one sweep than what had been achieved over the prior several years combined.
The GENIUS Act: A federal framework for stablecoins
The Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act sets up a long-awaited, uniform federal framework for dollar‑backed stablecoins. The bill passed with broad bipartisan support (68–30 in the Senate and 308–122 in the House), and was signed into law by President Trump on July 18, 2025, just one day after clearing the House.
The law requires that all stablecoin issuers maintain high‑quality liquid assets (such as cash or short-term U.S. Treasuries) equal to 100% of the value of tokens in circulation. Issuers must also disclose the composition of their reserves on a monthly basis and submit them to an annual audit once their market capitalization exceeds $50 billion.
Oversight of issuers is flexible but mandatory, allowing firms the choice to either obtain a federal charter or work under a qualifying state regulator (one approved license is required before a stablecoin may circulate nationwide). Existing issuers will have approximately 18 months to comply once final implementing rules are adopted by the relevant regulators.
By officially recognizing these instruments as “payment stablecoins,” the Act enables federally approved issuers to integrate with payment systems such as ACH, card networks, and FedNow, offering the potential for faster settlement times and lower-cost remittances. Additionally, the law grants token holders priority claims on reserve assets in the event of an issuer’s insolvency, providing safeguards against the kind of contagion seen during the Terra Luna collapse of 2022.
SEC Chairman (and former Commissioner) Paul Atkins praised the GENIUS Act as a “historic milestone,” arguing that it provides a strong regulatory foundation to support the development of new payment solutions. President Trump echoed this optimism upon signing the bill, declaring that establishing clear rules for dollar-backed stablecoins “could be perhaps the greatest revolution in financial technology since the birth of the internet itself”.
The CLARITY Act: Defining digital assets as securities or commodities
The Digital Asset Market CLARITY Act, passed by the House with a 294–134 vote, confronts one of crypto’s most debated legal questions: when should a token be treated as a security, and when is it a commodity?
To address this, the bill introduces the term digital commodity, referring to tokens operating on sufficiently decentralized or mature blockchains where no single entity exerts control. Under this framework, such assets would fall under the oversight of the Commodity Futures Trading Commission (CFTC). Based on this definition, Bitcoin, and, in most interpretations, Ether, would be classified as digital commodities.
The Act also provides a path forward for newer or more centralized projects. Such issuers must either evolve toward decentralization or opt for transparency by submitting periodic public disclosures modeled on SEC reporting requirements.
Either approach enables the asset to be treated as a digital commodity and traded on a CFTC-registered exchange, subject to investor protection measures such as trade surveillance, segregation of customer assets, and robust AML programs. Importantly, qualifying digital commodities would be expressly exempt from the Securities Act. However, trading venues already registered with the SEC would remain under the Commission’s jurisdiction, requiring ongoing coordination between the SEC and CFTC.
For compliance officers at Registered Investment Advisers (RIAs), the CLARITY Act could bring meaningful operational relief. Under SEC Rule 204A-1, Access Persons must disclose and report holdings and transactions in “reportable securities.” In the absence of regulatory clarity, many firms have conservatively treated digital asset holdings as reportable, especially given the SEC’s broad view of what constitutes a security. If enacted, the CLARITY Act would statutorily classify decentralized tokens like Bitcoin as commodities, placing them outside the scope of Rule 204A-1’s reporting requirements. This would reduce the compliance burden related to personal trading surveillance and simplify Code of Ethics administration for RIAs with crypto-savvy employees.
Conversely, digital assets that retain the characteristics of securities (e.g., tokenized equities or on-chain representations of traditional financial instruments) would remain subject to the disclosure and monitoring requirements under Rule 204A-1. As SEC Commissioner Hester Peirce recently stated, “While blockchain-based tokenization is new, the process of issuing an instrument representing a security is not. The same legal requirements apply to on-and off-chain versions of these instruments”.
RIAs will therefore need to revise their compliance manuals and employee training programs to reflect the clarified asset classification, ultimately ensuring Access Persons understand which digital assets trigger reporting and pre-clearance obligations, and how to properly interface with self-custody solutions that facilitate exposure to such on-chain digital securities.
Firms that advise on crypto portfolios will also benefit from the definitional clarity provided by the CLARITY Act. Advisers focusing exclusively on digital commodities may fall under the jurisdiction of the CFTC and be required to register as Commodity Trading Advisors (CTAs), while those advising on security tokens would continue to operate as SEC-registered investment advisers. In either case, the Act’s delineation of regulatory boundaries between the SEC and CFTC offers the kind of legal certainty compliance teams have long sought. It also informs key obligations related to custody, disclosure, and internal personal trading policies.
The Anti-CBDC Act: Blocking a U.S. Central Bank digital currency
The third pillar of Crypto Week’s legislative package is the Anti-CBDC Surveillance State Act, a measure aimed at preventing the launch of a U.S. central bank digital currency (CBDC) without explicit congressional approval. The bill narrowly passed the House by a 219–210 vote, largely along party lines. It amends the Federal Reserve Act to prohibit Federal Reserve banks from offering certain products directly to individuals, specifically to block any rollout of a direct-to-consumer digital dollar.
The rationale behind the bill centers on concerns over financial privacy and potential government overreach. Republican sponsors argue that a government-issued digital currency could enable unwarranted surveillance or control over citizens’ financial behavior, fundamentally altering the relationship between individuals and the state’s monetary system.
The bill’s future in the Senate remains uncertain. It faces resistance from Democrats and segments of the financial sector who argue that a U.S. CBDC could provide benefits such as faster payments, increased financial inclusion, or greater monetary policy efficiency, particularly if designed with strong privacy safeguards. During House debate, Financial Services Committee Ranking Member Rep. Maxine Waters (D-CA) sharply criticized the crypto bills, including the Anti-CBDC Act. She warned that passing them, “will create giant loopholes in our federal financial laws that put consumers and investors at risk, in the name of innovation. These bills would increase the chance of another costly financial crisis, like the one in 2008 that led to trillions of dollars of wealth being wiped out, in the name of innovation”.
Even if it does not become law immediately, the bill sends a strong political signal. At its core, it raises a fundamental policy question: Should the future of U.S. digital currency be shaped by public institutions or private innovation? If the Senate ultimately passes the bill, the federal government would formally reject a Fed-issued digital dollar, leaving the digital payments landscape to be shaped by private sector solutions, such as stablecoins regulated under the GENIUS Act and decentralized cryptocurrencies like Bitcoin.
A new era for U.S. crypto regulation
There is now unmistakable buy-in from the highest levels of government. The sitting President has not only endorsed the legislative package but also played an active role in its advancement, promising to “make the U.S. the crypto capital of the world” and ensure that regulations are “written by people who love your industry, not hate your industry”. This marks a sharp departure from the prior administration’s more skeptical stance toward digital assets. Industry engagement (through lobbying, advocacy, and campaign support) has clearly borne fruit in the form of legislation that is both favorable and, importantly, balanced.
The bipartisan passage of the GENIUS and CLARITY Acts further reflects a growing consensus that practical regulation is essential to foster innovation while protecting consumers. More than 100 House Democrats joined Republicans to support these measures, highlighting that the status quo of regulatory uncertainty is no longer politically sustainable. Even longtime skeptics now acknowledge that inaction is not an option. The debate has shifted from whether to regulate crypto to how best to do so.
Historically, this legislative progress may represent the beginning of a coherent national crypto regulatory regime. Previous efforts, such as the Lummis-Gillibrand proposal in 2022, failed to gain traction, leaving a vacuum filled by state-level frameworks like Wyoming’s pro-crypto laws and New York’s BitLicense. In parallel, the SEC and CFTC vied for jurisdiction, often relying on litigation to assert authority. That fragmented landscape created uncertainty for innovators and investors alike. As GT Thompson (R-PA) noted, “Time and again, we have heard the calls for regulatory clarity and certainty in this ecosystem”. Now, with Congress moving bills that deliver clarity, the U.S. is poised to replace ad-hoc enforcement with a codified framework. This framework creates guardrails for stablecoins, clear definitions for digital assets, and a firm stance on digital dollar policy.
The industry’s response has been one of cautious optimism. “We are getting incredibly close to finally having clear rules for crypto to grow this industry in the United States,” wrote Coinbase CEO Brian Armstrong, celebrating the House votes. His views were echoed by both startup founders and institutional players who see the U.S. shifting from a hostile environment to a jurisdiction poised for responsible crypto innovation. Yet not everyone is convinced. Critics such as economist Peter Schiff and Senator Elizabeth Warren warn that too much accommodation for the industry could introduce systemic risks to the broader financial system.
These tensions will undoubtedly persist, but they will now unfold in a more structured environment. With concrete legislation in place and formal rulemakings on the horizon, the crypto regulatory conversation in the U.S. is finally moving out of the courtroom and into the policymaking arena, where it belongs.
How can Bovill Newgate help you navigate the ever-changing landscape of U.S. crypto regulation?
With landmark bills now reshaping the regulatory landscape, compliance teams are under pressure to interpret and prepare implementation around sweeping changes.
Our U.S. Regulatory and Compliance Team specializes in helping Registered Investment Advisers and financial institutions translate legislative developments into practical compliance frameworks. From code of ethics updates to SEC scoping, we turn policy into action.
Get in touch to discuss how these new rules may affect your firm and how we can help you stay confidently compliant.
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