Original Title: From Uncertainty to Dominance - Crypto Week in D.C. - Stablecoins, CLARITY, and Anti-CBDC Bills

Original Author: Paul Veradittakit, Partner at Pantera Capital

Original Translation: Saoirse, Foresight News

Summary

· The "GENIUS Act" has been signed into law, establishing a unified standard for the issuance and reserve of stablecoins.

· The House of Representatives passed the "CLARITY Act," clarifying the regulatory scope of the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) over digital assets, and outlining a path for transitioning from SEC oversight to CFTC oversight.

· The "National Defense Authorization Act" (NDAA) includes the "Anti-CBDC Act," which prohibits the Federal Reserve from issuing a centralized digital dollar without congressional approval, advocating for decentralized solutions.

Brendan Smialowski / AFP via Getty Images

Event Recap

Last week, the U.S. cryptocurrency policy witnessed a historic leap forward. During what was dubbed "Crypto Week" in Congress, legislators propelled several landmark bills. On July 19, President Trump signed the "GENIUS Act" into law, officially enacting it. This news immediately boosted market sentiment, propelling the total cryptocurrency market cap above $4 trillion for the first time, with stablecoin issuance reaching a new high of $261 billion. The act established a unified standard for stablecoins, prompting financial giants such as JPMorgan Chase, Bank of America, PayPal, and Stripe to announce pilot programs. The regulatory clarity in cryptocurrency reduced industry uncertainty, allowing institutional investors to deploy previously idle funds, enabling large banks to compliantly enter the stablecoin market, and users to transact more privately. This act firmly positioned cryptocurrency as a core pillar of the next-generation financial internet, while propelling the United States towards the title of the "Global Crypto Capital."

After months of debate, the CLARITY Act has passed the House with bipartisan support and is now swiftly moving to the Senate for consideration. This bill clarifies the regulatory roles of the SEC and CFTC regarding digital assets. Additionally, the Anti-CBDC Act has made significant progress, being included in the National Defense Authorization Act, prohibiting the Federal Reserve from issuing a centralized digital dollar without explicit approval from Congress.

This is an exciting moment for the cryptocurrency industry! Next, we will delve into the details of the GENIUS Act, the CLARITY Act, and the Anti-CBDC Act, as well as the significance of these developments for the industry.

GENIUS Act

On May 19th, the Senate passed the cloture vote for the GENIUS Act with 66 yeas and 32 nays. On July 17th, the U.S. Congress sent the bill to President Trump's desk, and on July 19th, the President signed it into law.

What is the GENIUS Act?

The GENIUS Act specifies who is eligible to issue payment-oriented stablecoins and lists the eligible assets that can serve as stablecoin reserves. This act fundamentally changes the market's perception of stablecoins, shifting from a mere trading instrument to an institutional-grade payment rail. Stablecoins enable banks and fintech firms to deploy them as true "programmable dollars," achieving instant settlement and 24/7 clearing. We believe this will unlock value across the full spectrum of the value chain, from machine payments to cross-border trade, while ensuring global dollar liquidity remains under U.S. regulatory oversight, ultimately leading to deeper market liquidity, lower settlement friction, and a more robust position for the dollar in the global market.

· Compliant issuers fall into three categories: (1) federally regulated banks; (2) non-bank stablecoin issuers licensed by the Office of the Comptroller of the Currency (OCC); (3) state-chartered issuers, but the total market cap of their circulating stablecoins must not exceed $100 billion.

· The value of reserve assets must be equal to or greater than the total face value of all stablecoins issued.

· Qualified reserve assets include: U.S. dollars held in cash, demand deposit accounts, or in the form of deposits at a reserve bank; short-term U.S. Treasury securities with a maturity of no more than 93 days; and overnight repurchase agreements collateralized by Treasury securities.

· The issuer must disclose a detailed breakdown of the reserve assets and circulating supply monthly, and undergo an independent audit annually to confirm a 1:1 asset backing ratio and asset compliance.

While the bill prohibits interest-bearing stablecoins, many projects may potentially offer returns through alternative means, such as introducing loyalty programs, rebates, and other mechanisms to simulate yield effects without directly paying interest. This regulatory pressure is expected to accelerate consolidation in the stablecoin industry, where users will likely opt for the most attractive non-interest incentive platforms. Stablecoin providers with robust loyalty or reward systems may capture a larger market share, shifting the industry from a decentralized "yield ecosystem" to a centralized landscape, ultimately dominated by a few key players offering innovative compliant reward mechanisms.

《CLARITY Act》

What is the《CLARITY Act》?

The《GENIUS Act》 provided a clear framework for stablecoin regulation, but there has yet to be legislation ensuring the decentralized and "trustless" transaction infrastructure for stablecoins. The introduction of the《CLARITY Act》 aims to fill this gap by clearly defining the regulatory boundaries between the SEC and CFTC in digital asset regulation.

The《CLARITY Act》 provides precise legal definitions for "digital assets," "digital commodities," and "mature blockchain systems":

· Digital Asset: Refers to a digital representation of value or rights recorded on a cryptographically secure distributed ledger.

· Digital Commodity: Refers to a fungible digital asset that is not a security, issued or existing on a mature blockchain system, and can be transferred between individuals without the need for intermediaries.

· Mature Blockchain System: Refers to a protocol that is functional, public, and sufficiently decentralized, where no individual or group can unilaterally control protocol rules or asset issuance.

According to the《CLARITY Act》, the SEC is responsible for regulating tokens that exhibit "investment contract" characteristics. These tokens are typically issued by projects in centralized control or early development stages for fundraising purposes. In contrast, the CFTC oversees "digital commodities," which are non-securities and fungible digital assets based on mature blockchain systems. The act allows digital assets to "transition" from SEC regulation to CFTC oversight once they achieve full decentralization and widespread adoption.

Analysis of the《CLARITY Act》

The CLARITY Act has clearly defined the essence of "decentralization":

· A mature blockchain system must have openness and interoperability. It must use open-source code and not restrict anyone from participating in functional activities on the blockchain.

· A mature blockchain system must have a governance mechanism. No individual or group may unilaterally modify the blockchain's functionality and operational rules, and no individual or group may hold more than 20% of the total voting power of the blockchain.

For a project to transition from SEC regulation to CFTC regulation, it must achieve full decentralization. Tokens regulated by the SEC are considered securities, subject to restrictions and regulatory requirements similar to publicly traded companies. In contrast, CFTC-regulated digital commodities have looser regulatory requirements, do not require detailed reporting, do not restrict token access, keep the market open to all participants, and do not even set a "qualified investor" threshold.

Prior to the enactment of this act, cryptocurrency project teams always faced a vague regulatory environment. No one could clearly define the standard for "decentralization," leading the industry to long-term legal pressure. Today, this situation has changed completely. The act has provided a clear legal definition of decentralization, allowing teams to no longer pursue constantly changing or unattainable goals but instead have a clear, quantifiable benchmark. This certainty has brought much-needed relief to industry innovators and paved a predictable path for development.

We believe that this act will prompt project teams to find a balance between "moderate centralization for performance optimization" and "promoting decentralization for market access and regulatory benefits."

Anti-CBDC Act

What is Central Bank Digital Currency (CBDC)?

A Central Bank Digital Currency (CBDC) is a digital version of a country's fiat currency issued and regulated directly by the central bank. Compared to stablecoins, CBDCs are fundamentally more susceptible to government control. Each transaction must go through a national centralized ledger, which can be monitored by authorities, allowing them to precisely track, analyze, and even restrict citizens' financial activities.

There is a fundamental difference between CBDCs and stablecoins: stablecoins are issued by private institutions, backed by reserve assets such as fiat currency or government bonds, lacking the central bank guarantee inherent to CBDCs. However, because stablecoins trade on public ledgers like Ethereum and Solana, their transactions are difficult for governments to examine.

What is the Anti-CBDC Act?

The Anti-CBDC Act, formally known as the Anti-Central Bank Digital Currency Surveillance Act, is a legislative measure aimed at preventing the Federal Reserve or any U.S. government agency from creating and implementing CBDCs without explicit authorization from Congress. The provision prohibits the government from searching and seizing Americans' financial data, closes loopholes, forbids the indirect issuance of CBDCs through third-party intermediaries, and mandates that any attempt to introduce a digital U.S. dollar must first receive clear formal approval from the legislative body.

"Anti-CBDC Bill" Analysis

The "Anti-CBDC Bill" steers financial innovation and activity towards public decentralized blockchains, rather than state-controlled ledgers. Combined with the "GENIUS Bill" and the "CLARITY Bill," this legislative framework reveals a clear policy orientation: the U.S. government chooses to support stablecoins on decentralized ledgers, rather than central bank digital currencies on permissioned government-ledgers.

This approach reduces the likelihood of a central bank digital currency-led state surveillance of finances, safeguarding individual financial privacy. By supporting decentralized infrastructure, this legislation aligns closely with the core tenets of blockchain, ensuring users control their economic sovereignty without fear of transaction censorship.

Conclusion

Last week was a historic moment for the cryptocurrency industry.

· The "CLARITY Bill" established clear standards for digital assets.

· The "GENIUS Bill" set forth clear rules for stablecoin issuance and operation.

· Ultimately, the "Anti-CBDC Bill" within the "National Defense Authorization Act" mitigated government surveillance risks, protected privacy, and incentivized the development of decentralized networks.

With increasing regulatory clarity in the U.S. cryptocurrency space, the industry is witnessing a robust resurgence centered around the U.S. We are seeing a surge in demand for local talent: teams that had previously relocated overseas are now returning to the U.S., and numerous projects are actively hiring U.S.-based experts in policy, developer relations, and partnership expansion.

Token issuance models are also shifting towards being "U.S.-friendly": many projects are no longer defaulting to offshore foundation models but opting to issue tokens through entities in Delaware; tokenomics models are being redesigned to better align with U.S. market expectations. As demonstrated by cases like OpenSea, airdrop activities are increasingly targeting U.S. users; mainstream platforms like Telegram are also rolling out Web3 wallets and apps for U.S. users, underscoring a refocus on the U.S. market.

A new era of regulatory certainty is injecting strong momentum into the digital asset industry, propelling the growth of innovative stablecoin banks and payment companies. Whether industry incumbents or nimble newcomers, they are swiftly launching institutional-grade solutions in custody, liquidity, compliance, and privacy protection—key pillars of a mature crypto ecosystem. After 12 years of industry evolution, we have never been more optimistic. With rapid growth and a solid legal framework, the U.S. is rapidly solidifying its unshakable status as the "Global Crypto Capital."

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