WASHINGTON — House lawmakers passed the most significant legislation regulating digital currency to date Thursday, approving a trio of bills aimed at revamping the nascent industry.
Lawmakers approved the bipartisan GENIUS Act, which establishes a framework for overseeing the $238 billion stablecoin market — cryptocurrency that is pegged to hard assets like the US dollar — in a 308-122 vote.
The measure is intended to pave the way for banks and other financial institutions to issue stablecoins, giving consumers more options about where to put their wealth.
Critics have warned that the new regulatory framework gives the government too much power over crypto, may endanger the industry’s decentralization, and could lead to certain stablecoins getting unfair regulatory treatment over others.
The bipartisan bill breezed through the Senate in a 68-30 vote last month after weeks of negotiations. But House Republicans had splintered over the measure despite President Trump’s support due to fears that it could pave the way for a central bank-issued or regulated digital currency.
Critics say the Federal Reserve or other government entities could impose massive surveillance capabilities to monitor crypto transactions, similar to practices in countries like China that have central bank digital currencies (CBDC).
In response to opposition from some Republicans, House GOP leadership agreed to take up a separate measure called the Anti-CBDC Surveillance StateAct, which passed 218-210 in a near-party-line vote.
Reps. Jared Golden (D-Maine) and Shri Thanedar (D-Mich.) joined 216 Republicans in endorsing the measure.
“It’s a dumbass bill,” groused Rep. Jim Himes (D-Conn.) during the Hill Nation Summit on Wednesday. “This is just one of those things where you sort of can’t believe you have to make this argument.”
“It is an article of MAGA faith that the Federal Reserve is going to look at how you’re spending all your dollars,” the former Goldman Sachs employee chided. “Well, guess what, my friend? The US authorities can already look at how you’re spending all your dollars.”
The House also took up and passed the Digital Asset Market Clarity Act, which tackles ambiguity between crypto and other digital assets, in a 294-134 vote.
The act is meant to clarify the responsibilities that the Securities and Exchange Commission (SEC) and the Commodities Futures and Trading Commission (CFTC) have when it comes to the regulation of crypto and other digital assets.
It delegates the responsibilities based on how the digital assets are used, attempting to resolve longstanding questions of uncertainty over what each agency’s tasks are with the nascent technology.
All three bills were considered as part of what had been dubbed “crypto week” as part of a legislative push to make good on Trump’s pledge to support the growing industry.
