New York, July 15, 2025 – The US House of Representatives is expected to vote this week on several cryptocurrency regulation bills. This follows the impetus given by Donald Trump, seen as a blessing by the sector.

After years of procrastination and a series of legislative proposals that failed to materialise, Congress is prioritising this issue before the parliamentary recess on July 24. This action aligns with Trump, who has become a champion of digital currencies since his last presidential campaign, after years of denouncing them.

Investors, euphoric at the dawn of this historic week in Congress, dubbed “crypto week”, pushed Bitcoin beyond the symbolic threshold of 120,000 dollars on Monday. This marks a new record.

Among the three bills under consideration, the Genius Act establishes a legislative framework for stablecoins; cryptocurrencies backed by a traditional currency. These digital currencies are considered the safest and least volatile because their parity with a traditional currency is theoretically guaranteed. They are also generally considered to have the best potential utility for the general public, far beyond the speculative investment offered by Bitcoin.

The Genius Act, passed by the Senate in mid-June, requires stablecoin issuers to hold reserves at least equivalent to the total value in circulation. These reserves must be in the form of readily available assets such as bank deposits or treasury bills. The adoption of the bill is “vital” for a wider distribution of stablecoins, according to Gerald Gallagher, chief legal officer of Sei Labs. Sei Labs is a platform dedicated to blockchain, the technology underpinning cryptocurrencies. “Many financial institutions are already eager to enter this market and are waiting for this law to be passed,” Gallagher added.

Several banks are already working on their own stablecoins, as are online commerce players like Amazon and Walmart. Meta, Uber and Airbnb are also considering adopting them. Many members of Congress, like Trump, see stablecoins as a means of strengthening the dollar, thanks to the global distribution of stablecoins backed by the US dollar.

Another flagship piece of legislation is the Clarity Act. This act makes the Commodity Futures Trading Commission (CFTC) the primary regulator of cryptocurrencies in the US. Crucially, digital currencies are no longer considered financial securities, but as digital assets. This change largely shields them from the constraints imposed, for example, on issuers of shares and bonds.

“The Clarity Act goes further than stablecoins and puts in place a market structure that will allow the US to be competitive,” said Sylvia Favretto, chief legal officer of Mysten Labs, another start-up working on blockchain. Several Democratic elected officials have expressed reservations about the bill, deeming it insufficiently protective for investors in an environment where fraud, scams and money laundering are not uncommon. Gallagher counters that the two laws “provide investors with a form of security and visibility that did not exist before”.

Democrats in the House of Representatives also regret that none of the bills contain provisions to prevent conflicts of interest. They are targeting Trump, who has been associated with several cryptocurrency projects for a year, from which he has already earned hundreds of millions of dollars in revenue. He created his own digital currency, the “$Trump”, and a company associated with the Trump family, World Liberty Financial, marketed its own stablecoin, the “USD1”. “It is unfortunate that opponents of cryptocurrencies are making the president's family's involvement (in the sector) a problem for the entire industry,” commented Gallagher.

The House could also put to a vote a third bill, which would enshrine in law an executive order issued by Trump at the end of January prohibiting the government from creating its own cryptocurrency. Several observers, including Juniper Research, have interpreted this directive as a further gesture to encourage private initiative in the cryptocurrency world. Trump wants to make the US the “crypto capital of the world”.

This article was translated to English using an AI tool.