Author: Paul Veradittakit Source: VerradiVerdict Translation: Shan Ouba, Golden Finance
GENIUS Act was officially signed into law, establishing unified standards for stablecoin issuance and reserves.
CLARITY Act passed a House vote, clarifying the regulatory boundaries of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) for digital assets, and providing a path for projects to migrate from SEC jurisdiction to CFTC;
Anti-CBDC clauses were included in the National Defense Authorization Act (NDAA), prohibiting the Federal Reserve from issuing central bank digital dollars without congressional approval, further encouraging decentralized solutions.
Last week, the U.S. legislature passed a series of landmark crypto legislation during a congressional session known as "Crypto Week." On July 19, President Trump signed the GENIUS Act, which boosted market sentiment significantly, with the total crypto market value exceeding $4 trillion for the first time and the total issuance of stablecoins hitting a new high of $261 billion.
The bill unified the issuance standards for stablecoins, prompting financial giants such as JPMorgan Chase, Bank of America, PayPal, and Stripe to quickly announce the launch of stablecoin pilots. This regulatory clarity lowered the barriers to institutional entry, allowing previously on-the-spot capital to be deployed, large banks to issue stablecoins in compliance, and users to trade more privately. The GENIUS Act makes stablecoins a core component of the next generation of financial Internet and consolidates the United States' position as the "global crypto hub."
At the same time, after months of debate, the CLARITY Act was passed by bipartisan support in the House of Representatives and is currently being accelerated to the Senate for deliberation. In addition, the anti-CBDC clause has also made a major breakthrough and has been formally included in the 2025 National Defense Authorization Act (NDAA), restricting the Federal Reserve from issuing digital dollars without congressional authorization.
This is a very important moment for the crypto industry. The following is a brief analysis of three key policies and their significance.
On May 19, the Senate passed the GENIUS Act with 66 votes in favor and 32 votes against. On July 17, the U.S. Congress sent the bill to President Trump. On July 19, the president signed the bill into law.
The GENIUS Act clarifies who can issue payment stablecoins and outlines eligible stablecoin reserve instruments.The bill changes the market’s view of stablecoins: from a mere tradable opportunity to an institutional-grade payment channel. Stablecoins enable banks and fintechs to deploy them as a truly programmable dollar that settles in seconds and clears 24/7. We believe this will unlock value across the value chain, from machine payments to cross-border trade, while keeping global dollar liquidity on a ledger that is ultimately audited by U.S. regulators. This will enhance market liquidity, reduce settlement frictions, and strengthen the dollar in global markets.
A qualifying issuer is either (i) a federally regulated bank, (ii) a non-bank stablecoin issuer licensed by the OCC, or (iii) a state-chartered issuer with a total market value of stablecoins in circulation of no more than $10 billion.
Reserves must be equal to or greater than the total face value of all outstanding stablecoins.
Eligible reserve instruments include U.S. dollars held in cash, demand deposits or insured stocks at insured depository institutions, Treasury bills with maturities of 93 days or less, and overnight reverse repurchase agreements fully backed by Treasury bills.
Issuers must publish a breakdown of reserves and supply on a monthly basis and obtain an annual independent audit to confirm 1:1 backing and asset eligibility.
While the bill prohibits the issuance of yield-bearing stablecoins, many projects may adapt by offering other forms of rewards, such as loyalty programs and rebates, which can simulate the effect of yield without explicitly paying interest. This regulatory pressure is expected to accelerate consolidation in the stablecoin industry as users gradually gravitate to platforms that offer the most attractive non-yield incentives. In turn, stablecoin providers with well-developed loyalty or reward structures may gain greater market share, prompting a fragmented yield ecosystem to move toward a more centralized landscape dominated by a few large players who offer innovative and compliant reward mechanisms.
The GENIUS Act provides a clear framework for stablecoin regulation, but there is currently no legislation to ensure that stablecoin transactions are decentralized and trustless. The CLARITY Act aims to fill this gap. The Act makes a crucial distinction between the SEC and CFTC’s regulatory responsibilities for digital assets.
The CLARITY Act provides precise legal definitions for digital assets, digital commodities, and mature blockchain systems.
Digital assets are defined as digital representations of value or rights recorded on a cryptographically secure distributed ledger.
A digital commodity is a fungible digital asset that is not a security, is issued or exists on a mature blockchain system, and can be transferred between individuals without relying on an intermediary
A mature blockchain system is a functional, public, sufficiently decentralized protocol that no individual or group can unilaterally control the protocol rules or asset issuance
Under the CLARITY Act, the U.S. Securities and Exchange Commission (SEC) is responsible for regulating tokens that are investment contracts. Investment contracts typically refer to tokens issued to raise funds, issued by projects that are still under centralized control or in the early stages of development. In contrast, the U.S. Commodity Futures Trading Commission (CFTC) is given jurisdiction over digital commodities, which are not classified as securities and exist in mature blockchain systems. The bill allows digital assets to be transferred from the SEC to the CFTC once they are sufficiently decentralized and widely adopted.
The CLARITY Act clearly defines what "decentralization" means:
A mature blockchain system must be open and interoperable. It must have open source code and must not prohibit anyone from participating in functional activities related to the blockchain.
A mature blockchain system must also have a governance system. No individual or group may have the ability to unilaterally change the functions and operating mechanisms of the blockchain system, nor may they have more than 20% of the system's circulating voting rights.
In order for a project to "graduate" from SEC supervision to CFTC supervision, it must meet the standard of "sufficient decentralization".
Tokens under SEC supervision are considered securities and are subject to strict disclosure and compliance requirements similar to those of listed companies; while tokens under CFTC supervision are classified as digital commodities and are subject to relatively loose supervision.
Projects under CFTC supervision do not need to submit detailed reports or restrict access to tokens. The market is open to all users without the need for a "qualified investor" threshold.
Before the CLARITY Act, crypto project teams faced an ambiguous compliance environment - no one really knew what "decentralized" meant, which led to many projects being under constant legal pressure and having to proactively over-comply.
Now, the situation has changed: the CLARITY Act introduces clear legal definitions, so that project teams no longer need to chase vague and ever-changing regulatory goals, but have clear and feasible standards. This clarity has greatly reduced the pressure on the industry and provided a more predictable development path for innovators.
We believe that this bill will prompt project teams to seek a better balance between "centralization for performance" and "decentralization for market access and regulatory compliance."
Central Bank Digital Currency (CBDC) is a digital form of legal tender that is directly issued and regulated by a country's central bank.
Compared to stablecoins, CBDCs are inherently more susceptible to government surveillance because all of their transactions must be recorded by a centralized national ledger, or a system that can be controlled by the state, allowing the government to track, analyze, and even restrict citizens' financial activities.
CBDCs are different from stablecoins. Stablecoins are usually issued by private institutions and backed by assets such as fiat currency or government bonds. Therefore, they do not have central bank guarantees.
But because stablecoins run on public blockchains such as Ethereum and Solana, it is difficult for governments to censor or interfere with their transactions.
The “Anti-CBDC Provision,” formally known as the Anti-Central Bank Digital Currency Surveillance State Act, is a legislative measure designed to restrict the Federal Reserve or any other U.S. government agency from issuing CBDCs without explicit authorization from Congress.
The core goal of the provision is to prevent the government from searching or expropriating the financial data of U.S. citizens. It also closes legal loopholes by prohibiting the “indirect issuance” of CBDCs through third-party intermediaries and requires that any attempt to issue a “digital dollar” must first be formally approved by Congress.
The “Anti-CBDC Provision” pushes financial innovation and activity away from centralized, state-controlled ledgers and onto public, decentralized blockchain networks.
Combined with the GENIUS Act and the CLARITY Act, this legislative framework sends a clear policy signal: the U.S. government is supporting stablecoins based on decentralized ledgers rather than central bank digital currencies based on government-permitted ledgers.
This approach effectively curbs the possibility of state-led financial surveillance in CBDC systems while also protecting users' financial privacy. By supporting decentralized infrastructure, the spirit of this legislation is consistent with the core value of blockchain: ensuring that users are in control of their own economic lives without fear of transaction censorship or arbitrary interference.
Last week was a historic moment for the crypto industry.
The CLARITY Act establishes clear standards for "digital commodities."
The GENIUS Act sets clear rules for the issuance and operation of stablecoins.
Finally, the anti-CBDC provisions in the National Defense Authorization Act (NDAA) exclude government surveillance, protect user privacy, and encourage the development of decentralized networks.
As the US crypto regulatory framework becomes clearer, the industry is experiencing a "bull market recovery" rooted in the United States. We have seen a surge in demand for local talent: teams that once fled overseas are returning to the United States, and more and more projects are actively recruiting policy advisors, developer relations and business development experts with US backgrounds.
At the same time, the token issuance model is also evolving in a direction that is more in line with US regulations: many projects no longer default to issuing tokens through offshore foundations, but directly through Delaware entities. Token economic models are also being redesigned to better meet the expectations of the US domestic market. For example, OpenSea's airdrops are increasingly targeting US users; large platforms such as Telegram have also begun to launch Web3 wallets and mini-programs for the US market, showing a return of market attention.
This new era of regulatory certainty is injecting strong momentum into the digital asset industry and driving the outbreak of innovative stablecoin banks and payment companies. Both leading institutions and emerging players are moving quickly to launch institutional-grade custody, liquidity, compliance and privacy solutions - these are the indispensable pillars of a mature crypto ecosystem.
After more than 12 years of industry evolution, Pantera has never been more confident. With this rapid development momentum and a reliable legal framework, the United States is rapidly establishing its position as the "global crypto capital", there is no doubt about it.
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