The U.S. is witnessing a dramatic shift in its cryptocurrency policy landscape with accelerated efforts to cement a regulatory foundation for stablecoins and digital commodities.
Why This Matters
The emerging legal framework for stablecoins and digital assets will determine how innovation, compliance, and enforcement unfold across crypto markets. With the signing of the GENIUS Act and the advancement of the CLARITY Act, the U.S. is transitioning from regulatory ambiguity to a structured, albeit politically contested, regime that will shape both domestic and global crypto strategies.
For the full source texts, see:
- GENIUS Act: Establishes a dual regime for stablecoin issuance with prudential oversight, BSA obligations, and prohibition of interest.
- CLARITY Act: Clarifies the roles of CFTC and SEC and sets a path for commodity classification and regulated exchanges.
- Congressional Research Service (CRS) Overview of GENIUS Act: Details reserve, registration, Anti-money Laundering (AML), and supervisory requirements for stablecoin issuers.
- CRS Overview of CLARITY Act: Analyzes blockchain maturity, regulatory exemptions, and exchange registration protocols.
Key Points
GENIUS Act (S.1582):
- Defines “payment stablecoin” and sets a 1:1 reserve backing requirement using U.S. dollars or liquid federal assets.
- Establishes dual regulatory tracks: federal oversight via the Office of the Comptroller of the Currency (OCC) and a state regime for issuers under $10B.
- Restricts stablecoin issuance to federally or state-qualified entities.
- Applies Bank Secrecy Act (BSA) and AML obligations to issuers.
- Forbids interest payments on stablecoin holdings.
- Creates a “Stablecoin Certification Review Committee” to coordinate federal and state oversight.
- Foreign stablecoin issuers must establish equivalency agreements and register for U.S. access.
CLARITY Act (H.R. 3633):
- Grants the Commodity Futures Trading Commission (CFTC) primary authority over “digital commodities.”
- Defines “mature blockchains” and creates certification processes for their compliance.
- Excludes stablecoins, securities, and derivatives from the definition of “digital commodity.”
- Preserves SEC authority over fundraising, but provides limited exemptions from securities registration.
- Sets reporting and asset segregation requirements for digital commodity exchanges.
- Introduces provisional registration for platforms pending full compliance.
What Next?
Executive Action on Debanking: The Trump administration is preparing an executive order that would fine banks and financial institutions that deny services to customers based on political beliefs or crypto affiliation. This aligns with the broader deregulatory push to protect crypto companies and conservative-aligned individuals from what it deems “financial censorship.”
- Implementation Rulemaking: Treasury, OCC, SEC, and CFTC are expected to publish implementing rules within 12 months.
- Litigation and Political Pushback: Legal challenges may arise, particularly over state-federal preemption, stablecoin competition, and First Amendment issues (e.g., the debanking of crypto firms).
- Market Restructuring: Firms may consolidate, seek federal charters, or restructure governance to meet maturity and reserve requirements.
Additional OODA Loop Resources: Crypto Acceleration and the Emergent Political Economy of Cryptocurrency (November 2024 through June 2025)
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December 2024
November 2024
About the Author
Daniel Pereira
Daniel Pereira is research director at OODA. He is a foresight strategist, creative technologist, and an information communication technology (ICT) and digital media researcher with 20+ years of experience directing public/private partnerships and strategic innovation initiatives.
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