Four questions (and skilled solutions) on the brand new US cryptocurrency laws

Explore key highlights within the Bitcoin house. This article dives into: “Four questions (and expert answers) on the new US cryptocurrency legislation”.

The prefix comes from the Greek phrase “kryptos,” which means “secret” or “hidden.” And there’s lots about cryptocurrency that seems like secret information. This week, nonetheless, the US House of Representatives sought to convey some readability to digital currencies—or at the very least US regulation of them—by passing three new payments. What do you might want to know in regards to the GENIUS Act, the CLARITY Act, and the CBDC Anti-Surveillance State Act? Below, our consultants supply some readability of their very own on what these measures imply for cryptocurrency, Americans’ wallets, and the world.

1. What is most necessary to know in regards to the three payments?

These three payments purpose to supply regulatory readability for the cryptocurrency business, which has lengthy been working in a grey space, with unclear company oversight and undefined shopper safety and compliance necessities. With these three payments, the Trump administration and Congress purpose to fill these regulatory gaps and propel a broader agenda for innovation and US competitiveness in digital property. 

The GENIUS Act, which Trump signed into regulation right now, creates the primary federal regulatory framework for stablecoins, with guidelines for issuers and backing necessities. The CLARITY Act, which now goes to the Senate, transfers jurisdiction over digital property from the Securities and Exchange Commission to the Commodity Futures Trading Commission and defines and establishes guidelines for crypto-asset exchanges, brokers, and sellers. Finally, the CBDC Anti-Surveillance State Act, which can also be headed to the Senate, prohibits the Federal Reserve from issuing a central financial institution digital foreign money (CBDC) with out congressional approval. There remains to be plenty of work to do to deal with remaining gaps, however these payments are a primary step. Most importantly, these regulations are solely efficient when paired with constant and truthful enforcement

—Alisha Chhangani is an assistant director on the Atlantic Council’s GeoEconomics Center. 

2. What will the impression be for Americans?

The most probably consequence is that extra corporations, together with banks, are going to leap into providing crypto property. We’ve already seen a number of main monetary establishments point out that they wish to get extra concerned in crypto. As JPMorgan Chase CEO Jamie Dimon mentioned Tuesday when requested about stablecoins, “We’re going to be in it and learning a lot, and [a] player.” Now that there’s lastly extra regulatory readability, you may anticipate the standard finance gamers, typically referred to as TradFi, to have interaction extra with these quickly growing applied sciences. For Americans, this implies your financial institution might quickly offer you stablecoins and presumably even tokenized methods to spend money on the inventory market. None of this may occur in a single day, however in a 12 months or two the best way we financial institution may look considerably totally different. 

This can also include dangers. What occurred with Silicon Valley Bank in 2022 is a cautionary story. If banks get too concerned with one thing speculative—whether or not it’s within the digital economic system or not—then there’s a threat that some form of failure in a single a part of the market may create a bigger monetary disaster. These payments are aimed toward serving to make sure the property supplied are secure, nevertheless it’s clear there’s way more work to do on that entrance. 

—Josh Lipsky is the chair of worldwide economics on the Atlantic Council and the senior director of the Atlantic Council’s GeoEconomics Center.

3. What will the impression be outdoors of the United States?

From a coverage standpoint, nations all over the world have to think about the impression of dollar-denominated stablecoins on their home markets, whereas balancing their insurance policies on stablecoins denominated in their very own fiat foreign money (similar to euro-backed or yuan-backed stablecoins) and crypto property at giant. While all of the payments are centered on the home US market, international jurisdictions have been carefully following these developments in Congress. Reactions from overseas have largely echoed issues about monetary stability arising from the inflow of dollar-denominated stablecoins, particularly (however not solely) from rising markets. Other reactions have additionally included issues about US President Donald Trump’s private ventures with the crypto business and the way that might affect his policymaking. Jurisdictions overseas are inclined to imagine that the United States is being myopic with its digital asset insurance policies, with little examination of long-term impacts on the worldwide economic system.  

Increasingly, I see superior economies and rising markets doubling down on measures to guard their home monetary stability. This consists of extra of an emphasis on their central financial institution digital currencies and changes to their current stablecoin regulations, in addition to creating new ones in gentle of developments within the United States.

—Ananya Kumar is the deputy director for future of cash on the GeoEconomics Center.

4. How will these payments advance US management on digital property globally?

One of the payments, the CBDC Anti-Surveillance State Act, is concentrated on banning the Federal Reserve from issuing a retail CBDC. A retail CBDC could be utilized by most of the people for business and peer-to-peer transactions, similar to shopping for a cup of espresso. In distinction, a wholesale CBDC could be utilized by monetary establishments to settle interbank and securities transactions. 

Supporters of this invoice say they’re frightened about potential harms to private privateness and about authorities management of each day transactions. At the identical time, this invoice would make the United States the one nation on the earth to have banned a CBDC and a world outlier in CBDC improvement. Importantly, the invoice may probably additionally undermine the Federal Reserve’s important work on cross-border funds innovation. The Federal Reserve is actively concerned in Project Agora, alongside six different central banks, to make worldwide funds extra environment friendly and safe by integrating tokenized central financial institution cash and business financial institution deposits. Halting this work dangers leaving the United States behind in shaping the subsequent technology of worldwide cost infrastructure.

This is all taking place as nations more and more pursue various cost techniques designed to bypass the greenback. Without US management in cross-border funds innovation, different nations—together with China—may fill the void, setting technical requirements, governance norms, and monetary networks that diminish the function of the greenback. This erosion of management additionally poses a nationwide safety threat, limiting the United States’ potential to observe illicit finance and implement financial sanctions.

—Alisha Chhangani

***

As issues stand now—because of the lack of worldwide consensus on the function of dollar-backed stablecoins and crypto property—I see a rocky street forward for international governance of digital property. If there’s one takeaway from the Atlantic Council GeoEconomics Center’s Cryptocurrency Regulation Tracker, it’s that jurisdictions can’t go at crypto insurance policies alone. Creating a accountable, modern ecosystem will take international cooperation. 

The passing of the GENIUS Act provides the United States an opportunity to herald different nations to reply to their issues concerning dollar-backed stablecoins. Moreover, subsequent 12 months’s US presidency of the Group of Twenty (G20) is the right discussion board to take action. If the United States needs to advance its management on the worldwide stage, it ought to take the momentum from “crypto week” and translate it right into a second of worldwide consensus-building and cooperation.

—Ananya Kumar

Cryptocurrency Regulation Tracker

Cryptocurrencies might considerably alter monetary constructions and remodel the subsequent technology of cash and funds. Governments all over the world need to create regulations to stop the harms attributable to cryptocurrencies whereas encouraging the modern capabilities of cryptocurrencies. We analyze how 75 nations have regulated cryptocurrency of their jurisdictions.

Central Bank Digital Currency Tracker

Our flagship Central Bank Digital Currency (CBDC) Tracker takes you contained in the fast evolution of cash everywhere in the world. The interactive database now tracks over 135 nations— triple the variety of nations we first recognized as being lively in CBDC improvement in 2020.

Further studying

Related Experts:
Alisha Chhangani,
Ananya Kumar, and
Josh Lipsky

Image: US President Donald Trump holds the signed “Genius Act”, which is able to develop regulatory framework for stablecoin cryptocurrencies and develop oversight of the business, on the White House in Washington, D.C., U.S., July 18, 2025. REUTERS/Annabelle Gordon

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This article is tailored from www.atlanticcouncil.org. We’ve restructured and rewritten the content material for a broader viewers with improved readability and search engine optimization formatting.

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