US House Passes Crypto GENIUS Act, Boosting Industry Support for Trump
US House Advances Cryptocurrency Legislation Amid Trump’s Push for Crypto Capital
House Passes Key Cryptocurrency Bills
The House of Representatives in the United States has successfully passed three significant pieces of legislation concerning cryptocurrency, with one bill set to be sent directly to President Donald Trump and the other two moving to the Senate for further consideration. This legislative action aligns with the Trump administration’s ambition to position the US as the leading hub for cryptocurrency, a campaign dubbed “crypto week” by the president.
The GENIUS Act and Its Implications
The bill heading to Trump is known as the GENIUS Act, which aims to establish foundational regulations and consumer protections for stablecoins—cryptocurrencies pegged to stable assets like the US dollar to mitigate price fluctuations. House Financial Services Chair French Hill emphasized that this legislation is crucial for maintaining American competitiveness while safeguarding consumers. The bill received bipartisan backing, passing the House with a vote of 308-122.
New Market Structure for Digital Assets
A second piece of legislation, which aims to create a structured market for cryptocurrency, passed with a narrower margin of 294-134. This bill will also proceed to the Senate, where lawmakers may revise it. Its primary goal is to clarify the regulatory landscape for digital assets by distinguishing between cryptocurrencies classified as commodities, overseen by the Commodity Futures Trading Commission, and those considered securities, regulated by the Securities and Exchange Commission.
Concerns Over Central Bank Digital Currency
The third bill, which narrowly passed with a vote of 219-210, seeks to prevent the US from introducing a central bank digital currency, essentially a government-backed digital cash system. This legislation will also be forwarded to the Senate for further deliberation.
Trump’s Involvement in Cryptocurrency
Since the inception of cryptocurrencies in 2009, their popularity has surged, yet experts argue that unclear regulations have hindered US operations within this sector. Advocates believe that the recent legislative measures could pave the way for broader acceptance of cryptocurrencies in mainstream finance. However, some Democrats have criticized the expedited passage of the GENIUS Act, arguing that it overlooks potential conflicts of interest involving Trump and future presidents.
Ethical Concerns and Financial Interests
One notable provision in the GENIUS Act prohibits members of Congress and their families from profiting from stablecoins, but this restriction does not apply to the president and his family. Trump’s family reportedly has significant investments in World Liberty Financial, a cryptocurrency initiative that has launched its own stablecoin, USD1. Public financial disclosures indicate that Trump earned approximately $57.35 million from token sales in 2024. Additionally, a meme coin associated with him has generated around $320 million in fees, shared among various investors.
Criticism from Democratic Lawmakers
Representative Maxine Waters, the leading Democrat on the House Financial Services Committee, expressed concerns that the Republican-led efforts are aimed at legitimizing the Trump family’s financial interests and undermining ethical governance. Since taking office, Trump has also suggested the creation of a national cryptocurrency reserve and has halted certain investigations by the Department of Justice related to the crypto industry.
Some Democrats have further criticized the GENIUS Act for establishing what they view as an insufficient regulatory framework that could lead to long-term financial instability. They argue that the legislation may enable large corporations to launch their own private cryptocurrencies, raising additional concerns about market regulation and consumer protection.
