The United States House of Representatives has taken significant steps in the regulation of cryptocurrency by passing three bills, one of which is headed directly to President Donald Trump while the other two will be sent to the Senate.
This legislative move comes in the context of a concerted effort by the Trump administration to position the United States as the “crypto capital of the world,” an initiative the President has dubbed “crypto week.”
With the cryptocurrency industry being largely unregulated, concerns have emerged that it could potentially facilitate corruption and foreign influence, particularly given the Trump family’s interests in the sector.
The bill set to reach the President, known as the GENIUS Act, aims to establish essential guardrails and consumer protections for stablecoins—cryptocurrencies tied to stable assets like the US dollar to mitigate volatility.
During the House debate, Financial Services Chair French Hill emphasized that the legislation aims to bolster American competitiveness while safeguarding consumers.
He remarked, “Around the world, payment systems are undergoing a revolution.”
The GENIUS Act was approved by a bipartisan vote of 308-122 in the House, reflecting support from both Republican and Democratic lawmakers.
In addition to the GENIUS Act, a second bill designed to create a new market structure for cryptocurrency also gained traction, passing with a vote of 294-134.
This legislation, which will also move to the Senate, seeks to clarify the regulatory landscape for digital assets by delineating which cryptocurrencies fall under the Commodity Futures Trading Commission’s jurisdiction as commodities and which are deemed securities subject to oversight by the Securities and Exchange Commission.
The distinction is critical; commodities refer to tradable goods, whereas securities generally denote ownership stakes in assets.
Another bill passed with a closer margin of 219-210, which aims to prevent the United States from introducing a central bank digital currency.
This legislative package is part of a broader movement advocating for clearer regulations surrounding cryptocurrency in the United States, which has faced challenges due to ambiguous legal frameworks.
Proponents argue that the newly passed bills could catalyze increased mainstream adoption of cryptocurrency in the region.
However, critics, particularly among Democrats, have voiced concerns regarding the expedited passage of the GENIUS Act and its potential implications for the interests of President Trump and his family.
Notably, the GENIUS Act prohibits members of Congress and their families from profiting off stablecoins, yet this restriction does not extend to the President or his relatives.
This exemption raises eyebrows as Trump’s family has a substantial interest in World Liberty Financial, a crypto initiative that launched its own stablecoin, USD1.
Public financial disclosures indicate that Trump received $57.35 million from token sales at World Liberty Financial in 2024.
Additionally, a meme coin associated with him has reportedly generated around $320 million in fees, which are shared among various investors.
Rep. Maxine Waters, the leading Democrat on the House Financial Services panel, criticized Republican lawmakers, alleging that they are facilitating the legitimization of the Trump family’s financial interests through these legislative actions.
Since assuming office, Trump has put forth proposals for a cryptocurrency “national reserve” while also suspending Department of Justice investigations related to the industry.
Democratic critics of the GENIUS Act have further argued that the legislation creates an inadequate regulatory framework, potentially exposing consumers to long-term financial risks and paving the way for corporations to issue private cryptocurrencies.
image source from：aljazeera
