The New Laws of US Crypto: GENIUS, CLARITY & Anti-CBDC Acts

Several traditional investors dismiss the cryptocurrency market due to its unstable nature. One of the primary reasons for this instability is the lack of clarity around it. If you are a young crypto startup owner, you certainly don’t want to spend more on legal expenses than the actual product deployment costs.

The Trump administration understands this and has therefore introduced three new laws that completely change the US Crypto Regulation 2025. These laws, namely the GENIUS Act, the CLARITY Act, and the Anti-CBDC Act, together completely change the federal crypto framework in the US.

In this article, we will be learning about the three US laws, their implications, and how they will impact the crypto industry.

The Timeline of US Crypto Regulation

Until the US Crypto Regulation 2025, the US approach to crypto regulation was pretty vague. US courts, the SEC, and the CFTC have all attempted to apply traditional, outdated laws to novel technologies like crypto and blockchain. At one point, the SEC sanctions were so unjustified that it seemed to pick names arbitrarily and sue them.

However, the crypto market had changed massively from 2013 to 2024. What was once a $1 billion innovation had become a $3 trillion global market by the end of 2024. It was simply too big to ignore.

Moreover, several high-profile incidents that shook the world called for urgent clarity. For example, the FTX collapse in 2022 wiped out a massive amount of $32 billion in a matter of hours. Silicon Valley Bank's collapse in March 2023 threatened Circle's USDC stablecoin.

Similarly, Terra's algorithmic stablecoin experiment destroyed almost $40 billion in value. Each of these disasters highlighted the same problem: America lacked clear crypto rules. Additionally, this led to crypto businesses registering in foreign countries.

Also Read: Stablecoins: What Are They, How They Work, and Their Types

By mid-2025, Congress and the Senate acted fast. The outcome? Three defining acts that set rules for stablecoins, reallocate regulatory responsibilities, and provide privacy protection.

The GENIUS Act Crypto Regulation July 2025: How Does it Affect Stablecoins?

The GENIUS Act crypto regulation, July 2025, stands for "Guiding and Establishing National Innovation for U.S. Stablecoins." It is the first clear federal law in the US for the payment of stablecoins.

It sets reserve rules, disclosure requirements, and licensing pathways for issuers. In short, if you issue a dollar-pegged token to be used as a form of money, the law requires strict reserves and regular transparency.

What Does the GENIUS Act Actually Do?

Think of stablecoins as digital dollars. Before GENIUS, anyone could create them with minimal government intervention. For instance, Tether operated from the Bahamas. Circle worked around state-by-state rules, and smaller issuers played in legal grey zones. Now, this new law changes everything by establishing the first federal framework for stablecoins.

So, basically, the law lists out two paths for stablecoin makers. Banks and credit unions can issue stablecoins under the supervision of the federal banking system. In contrast, non-bank companies must obtain special licenses and follow strict requirements.

For example, a fintech wanting to issue a stablecoin must either partner with an insured depository. Or, it can get a federal licence and must meet reserve and disclosure rules. This definitely increases compliance costs but lowers risk.

Both these paths will require a 100% reserve backing with cash or short-term US Treasuries. No more fractional reserves. No more risky investments. So, essentially, every digital dollar should have a real dollar behind it.

Key Points About the GENIUS Act:

• Issuers must hold high-quality, liquid reserves (cash or short-term Treasuries), effectively a 1:1 backing model for payment stablecoins.
• Monthly public disclosures on reserve composition and other requirements take care of the transparency issues.
• Every issuer must follow certain KYC/AML crypto rules and anti-terrorism guidelines as well.
• Regulatory bodies and powers are now clear. Bank or insured institution issuers fall under the bank regulators. Certain non-bank issuers are federally licensed and subject to supervision by the OCC or the Treasury.
• Most importantly, customer funds are protected. If a stablecoin collapses, customer funds will be paid before anything else.

What is the Real-World Impact of the GENIUS Act?

One of the largest banking institutions in the world, JPMorgan Chase, quietly filed a trademark and then rolled out its own stablecoin JPMD. The organisation had introduced the internal JPM coin back in 2019. Now, the GENIUS Act and the favorable digital asset regulation policies led to the idea of JPMD.

The Problems With the GENIUS Act

While GENIUS is for sure a historic moment for the industry, it isn't perfect. The Act restricts tech giants like Apple or Google from directly issuing stablecoins. They must first partner with banks to do so. This provision is obviously meant to prevent monopolies, but it can also suppress innovation.

Also, what happens if a major stablecoin issuer faces a bank run? The Act provides tools but no guarantees.

Think of the Silicon Valley Bank scenario. Even with 100% reserves, a stablecoin could face redemption delays if its partner bank fails. The Act addresses this through diverse requirements, but certain risks still exist.

The CLARITY Act: Ending the SEC vs CFTC Battle

The CLARITY Act crypto regulation 2025 (Digital Asset Market Clarity Act, 2025) solves crypto's biggest headache: the SEC vs CFTC jurisdiction battle. For years, these agencies fought over who regulates what. Now, CLARITY draws clear boundaries.

Under CLARITY, digital assets are classified as either securities or digital commodities based on certain criteria. The Act also introduces the concept of "blockchain maturity". When a network becomes sufficiently decentralised, its native token transitions from a security to a commodity status.

Also Read: Trump’s Crypto Agenda: Tax Havens vs. Regulatory Crackdown

So, Bitcoin and Ethereum automatically qualify as commodities. Additionally, newer tokens must make sure their networks meet specific decentralisation metrics.

What changes?

This act has defined a “digital commodity” and also granted the CFTC a central role over most exchange trading and commodity-like tokens. This means crypto intermediaries like exchanges, brokers, etc., will now have to register with the CFTC.

The SEC will continue with its controlling authority over securities. Moreover, certain token offerings and “investment contract” uses remain within the SEC's jurisdiction.

The act also brings in certain crypto rules to improve consumer protection. For example, the CLARITY Act lists out some mandatory public disclosure requirements and also uses measures to contain insider trading.

Impact of Clarity Act on The Crypto Market

Before CLARITY, Coinbase mostly operated in a lack of clarity regarding the regulations. Some tokens looked like securities. Others may be commodities. The exchange faced potential SEC enforcement for any mistaken classification. Now, Coinbase registers as a Digital Commodity Exchange (DCE) with the CFTC for qualified tokens.

The practical impact is huge. Coinbase can now list new tokens faster, with clear compliance paths. Trading fees have also decreased as regulatory uncertainty costs can be avoided.

However, there are some challenges with the CLARITY Act, too. The approach still leaves certain DeFi tokens in the grey area. For example, are liquidity pool tokens securities or commodities? And what about governance tokens that have profit-sharing features? These questions may call for the judiciary’s intervention in the days to come.

CBDC Anti-Surveillance State Act

Put in simple terms, the Anti-Surveillance Act prohibits the Federal Reserve from issuing a retail central bank digital currency (CBDC) or directly offering accounts or payment services to individuals. They can do so, but only after Congress approves it.

Why was the CBDC Anti-Surveillance Act Needed?

The main reasons were privacy and sovereignty concerns. The Act prohibits the Fed from offering accounts directly to individuals. This means no digital dollar wallets at the central bank. Also, no transaction monitoring by the monetary authorities.

Moreover, global finance leaders are already using different measures. For example, China’s digital yuan shows how a CBDC can work as a retail instrument. That being said, it has also made sure that the whole thing remains under tight state control. Similarly, the EU is exploring CBDC options with privacy measures as well.

This called for the US administration to create better laws that can take care of these central issues.

The Risks

Critics are of the opinion that the Anti-CBDC Act kind of stalls American monetary innovation. The Act might preserve privacy, but will do so at the cost of financial relevance.

On the other hand, some believe the. Why does America need a CBDC when stablecoins provide digital dollars? As mentioned earlier, the GENIUS Act crypto regulation, July 2025, makes way for private sector solutions without government surveillance. Companies like Circle, Tether, and bank-issued stablecoins can innovate and then build faster than central banks.

What do these Acts Mean for Users?

For Investors

The US crypto regulation 2025 reduces legal risk and, therefore, legal costs. They also lower the cost of capital for compliant projects. That should increase institutional participation.

For Startups

Legal clarity helps in proper product planning and fundraising. However, compliance issues favour organisations that can afford lawyers and auditors. So, while the purpose may be to invite American crypto startups to build in the space of blockchain, there may be adverse effects, too.

For Banks

The GENIUS Act creates paths for banks to issue or custody stablecoins. Moreover, banks can enjoy revenue-sharing models as the act requires partnerships with banking institutions to issue stablecoins. For some perspective, JPMorgan, Bank of America, and Wells Fargo all announced crypto initiatives within weeks of the acts passing.

For Global Users and Payments

A secure, regulated US stablecoin ecosystem can preserve the dollar’s role in cross-border crypto payments. But the US ban on a retail CBDC means policymakers are betting on regulated private rails rather than a public digital dollar.

Concluding Remarks

We analyzed the need and the impact of the GENIUS Act crypto regulation, July 2025, the CLARITY Act, and the CBDC Anti-Surveillance Act. These new laws mean that the regulated crypto era begins now. Expect some more groundbreaking regulations in the future that can reshape the market.

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