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- April 2025State of the US Crypto Bills
The U.S. Congress is actively advancing three significant pieces of cryptocurrency legislation: the Financial Innovation and Technology for the 21st Century Act (FIT21), the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, and the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act. These bills aim to establish comprehensive regulatory frameworks for digital assets and stablecoins, reflecting bipartisan efforts to bring long awaited clarity and oversight to the crypto industry. This has been something the industry has been pushing for some time, and its starting to look like we’re closer to the end than the beginning. With that said, I thought it would be helpful to provide readers with an overview who is pushing it forward, what the bill aims to do, and why its important to our industry.
TLDR
Financial Innovation and Technology for the 21st Century Act (FIT21) aka the “Market Structure Bill”
Sponsors:
Rep. Glenn "GT" Thompson (R-PA), co-sponsored by Reps. French Hill (R-AR), Dusty Johnson (R-SD), Warren Davidson (R-OH), and Tom Emmer (R-MN).
Key Milestones:
Introduced July 20, 2023, as H.R. 4763.
Passed the House on May 22, 2024, with a bipartisan vote of 279–136 (including 71 Democrats).
Next Steps
Senate Introduction and Committee Review
A companion bill or the House-passed version must be introduced in the Senate.
It will likely be referred to the Senate Banking, Housing, and Urban Affairs Committee
The Committee may:
Hold hearings,
Amend the bill,
Draft a new version,
Or stall the process entirely.
Senate Floor Vote
If approved by committee, the bill proceeds to the full Senate for debate and vote.
Passage requires a simple majority (51 votes).
If the Senate version differs from the House version, a conference committee will reconcile the differences.
Presidential Action
Once both chambers pass an identical version, the bill is sent to the President.
The Trump administration has signaled strong support for digital asset innovation and deregulation.
President Trump is expected to sign FIT21 into law, aligning with his administration's pro-crypto stance.
What It Does:
Establishes a regulatory framework distinguishing digital commodities (e.g., Bitcoin, Ethereum) regulated by the CFTC if decentralized and no single entity controls ≥20% of the asset or voting power.
Defines securities as functional but non-decentralized assets regulated by the SEC.
Introduces a self-certification process for projects to register as decentralized with the CFTC or as securities with the SEC.
Enhances consumer protections and clarifies jurisdictional boundaries between the SEC and CFTC.
Who It Affects:
Blockchain developers, crypto exchanges, investors, and token issuers.
Potential Repercussions:
Provides regulatory clarity that may position the U.S. as a crypto innovation hub.
Reduces overlapping enforcement between SEC and CFTC, streamlining compliance.
Could lead to legal disputes over asset classifications in gray areas.
Offers a structured framework for developers within defined regulations.
Stablecoin Bills
Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act
Sponsors:
Sen. Bill Hagerty (R-TN), co-sponsored by Sens. Tim Scott (R-SC), Cynthia Lummis (R-WY), Kirsten Gillibrand (D-NY), and Angela Alsobrooks (D-MD).
Key Milestones:
Introduced February 4, 2025, as S. 919 (also referenced as S. 394 in some sources, but S. 919 is the latest number).
Approved by Senate Banking Committee on March 13, 2025, with an 18-6 bipartisan vote (including five Democrats).
Awaiting full Senate vote, with no confirmed timeline; President Trump has advocated for passage by August 2025.
What It Does:
Creates a federal framework for payment stablecoins issued by subsidiaries of insured depository institutions, OCC-approved federal nonbank entities, and state-qualified issuers under $10 billion market cap (with waivers for larger issuers).
Requires 1:1 reserves in USD or high-quality liquid assets (e.g., Treasuries), monthly public reserve disclosures certified by CEO/CFO, and audits by registered accounting firms.
Mandates AML/KYC compliance, asset segregation, and consumer redemption rights.
Prohibits algorithmic stablecoins outright.
Who It Affects:
Centralized stablecoin issuers (e.g., Circle’s USDC), banks, fintech firms, and consumers using digital dollars.
Potential Repercussions:
Provides legal certainty for fiat-backed stablecoins, encouraging domestic innovation.
Increases compliance costs for smaller issuers due to audits and reserve requirements.
May influence global stablecoin regulations, positioning the U.S. as a leader.
Excludes nonbank issuers from Federal Reserve master accounts, possibly limiting flexibility.
Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act
Sponsors: Reps. Bryan Steil (R-WI) and French Hill (R-AR)
Key Milestones:
February 6, 2025: Discussion draft released.
February 11, 2025: Subcommittee hearing held by the House Financial Services Subcommittee on Digital Assets.
March 26, 2025: H.R. 2392 formally introduced in the House.
April 2, 2025: Passed by the House Financial Services Committee with a 32–17 vote.
Next Steps: Awaiting full House vote; potential reconciliation with the GENIUS Act if both pass.
What It Does:
Establishes a federal framework emphasizing consumer protection and market integrity for payment stablecoins.
Requires 1:1 reserves in U.S. dollars or high-quality liquid assets.
Mandates federal or state regulatory approval for issuers.
Imposes a two-year moratorium on algorithmic stablecoins, allowing study but no approval.
Prohibits interest-yielding stablecoins to limit speculative risks.
Requires public disclosures clarifying stablecoins are not government-backed.
Who It Affects:
Stablecoin projects, especially algorithmic and DeFi-based ones affected by the moratorium.
Investors seeking yield-bearing digital assets, limited by the interest ban.
Regulators responsible for systemic oversight.
Potential Repercussions:
Stricter rules may raise barriers, potentially pushing smaller or innovative projects offshore.
Enhanced consumer safeguards could increase trust in stablecoins.
The moratorium on algorithmic stablecoins may limit DeFi experimentation.
Could complement or compete with the GENIUS Act, depending on final reconciliation.