Original Article Title: From Uncertainty to Dominance - "Crypto Week" in D.C. - Stablecoins, CLARITY, and Anti-CBDC Bills

Original Article Author: Paul Veradittakit, Partner at Pantera Capital

Original Article Translation: Saoirse, Foresight News

Abstract

· The "GENIUS Act" has been signed into law, establishing a unified standard for the issuance and reserve of stablecoins.

· The House of Representatives passed the "CLARITY Act," clarifying the regulatory scope of the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) regarding digital assets, and outlining a path for transitioning from SEC oversight to CFTC oversight.

· The "National Defense Authorization Act" (NDAA) included the "Anti-CBDC Act," which prohibits the Federal Reserve from issuing a centralized digital dollar without congressional approval, advocating for decentralized solutions.

Brandon Smith Photography / AFP via Getty Images

Event Recap

Last week, U.S. cryptocurrency policy saw historic progress. During what was referred to as "Crypto Week" in Congress, legislators advanced several landmark bills. On July 19, President Trump signed the "GENIUS Act" into law, making it official. This news immediately boosted market sentiment, propelling the total cryptocurrency market cap above $4 trillion for the first time, with stablecoin issuance reaching a new high of $261 billion. The act established a unified standard for stablecoins, prompting major financial institutions like JPMorgan Chase, Bank of America, PayPal, and Stripe to announce pilot programs. The regulatory clarity in cryptocurrency reduced industry uncertainty, allowing institutional investors to deploy previously idle funds, enabling large banks to compliantly enter the stablecoin market, and empowering users to engage in more private transactions. This act firmly positioned cryptocurrency as a core pillar of the next-generation financial internet and propelled the U.S. toward the title of the "Global Crypto Capital."

After months of debate, the CLARITY Act has passed the House with bipartisan support and is now rapidly moving to the Senate for consideration. This bill clarifies the regulatory roles of the SEC and CFTC regarding digital assets. Additionally, the Anti-CBDC Act has made significant progress, being included in the National Defense Authorization Act, prohibiting the Federal Reserve from issuing a centralized digital dollar without explicit approval from Congress.

This is an exciting moment for the cryptocurrency industry! Next, we will delve into the details of the GENIUS Act, CLARITY Act, and Anti-CBDC Act, and discuss the significance of these developments for the industry.

GENIUS Act

On May 19, the Senate passed the final vote on the GENIUS Act with 66 votes in favor and 32 votes against. On July 17, the U.S. Congress sent the bill to President Trump's desk, and on July 19, the President signed it into law.

What is the GENIUS Act?

The GENIUS Act clarifies who is eligible to issue payment stablecoins and lists eligible assets that can serve as stablecoin reserves. This act fundamentally changes the market's perception of stablecoins from a mere trading instrument to an institutional-grade payment rail. Stablecoins enable banks and fintech firms to deploy them as true "programmable dollars," enabling instant settlement and 24/7 clearing. We believe this will unlock value across the entire value chain from machine payments to cross-border trade, while ensuring global USD liquidity remains supervised by U.S. regulators, ultimately leading to deeper market liquidity, lower settlement friction, and a more robust global market position for the USD.

· Compliance-issuing parties include three categories: (1) federally regulated banks; (2) non-bank stablecoin issuers licensed by the Office of the Comptroller of the Currency (OCC); (3) state-chartered issuers, but the total market value of stablecoins in circulation may not exceed $100 billion.

· The value of reserve assets must be equal to or greater than the total face value of all stablecoins issued.

· Eligible reserve assets include: U.S. dollars held in the form of cash, demand deposits, or reserve balances with Federal Reserve Banks; short-term U.S. Treasury bonds with a maturity of no more than 93 days; and overnight repurchase agreements fully collateralized by Treasury securities.

· The issuer must publish detailed information on reserve assets and circulation every month, and undergo an independent audit annually to confirm a 1:1 asset backing ratio and asset compliance.

Although the bill prohibits interest-bearing stablecoins, many projects may explore alternative ways to provide returns, such as launching loyalty programs, rebates, and other mechanisms to simulate yield without directly paying interest. This regulatory pressure is expected to accelerate consolidation in the stablecoin industry, as users will likely prefer platforms with the most attractive non-interest incentives. Stablecoin providers with robust loyalty or reward systems may capture a larger market share, driving the industry from a fragmented "yield ecosystem" to a more centralized landscape, ultimately led by a few key players offering innovative compliant reward mechanisms.

《CLARITY Act》

What Is the《CLARITY Act》?

The 《GENIUS Act》 provided a clear framework for stablecoin regulations, but there has yet to be legislation ensuring that the stablecoin transaction infrastructure achieves decentralization and "trustlessness." The introduction of the 《CLARITY Act》 aims to fill this gap by clearly delineating the SEC's and CFTC's responsibilities in digital asset regulation.

The 《CLARITY Act》 provides precise legal definitions for "digital assets," "digital commodities," and "mature blockchain systems":

· Digital Asset: Refers to a digital representation of value or rights recorded on a cryptographically secure distributed ledger.

· Digital Commodity: Refers to a fungible digital asset that is not a security, issued or existing on a mature blockchain system, and can be transferred between individuals without the need for intermediaries.

· Mature Blockchain System: Refers to a protocol with functionality, transparency, and sufficient decentralization, where no individual or entity can unilaterally control protocol rules or asset issuance.

Under the 《CLARITY Act》, the SEC is responsible for regulating tokens that exhibit characteristics of an "investment contract." These tokens are typically issued by projects in a centralized control or early development stage for fundraising purposes. In contrast, the CFTC oversees "digital commodities," which are non-securities and fungible digital assets based on mature blockchain systems. The act allows digital assets to "migrate" from SEC oversight to CFTC oversight once they achieve full decentralization and widespread adoption.

Analysis of the《CLARITY Act》

The CLARITY Act clearly defines the essence of "decentralization":

· A mature blockchain system must have openness and interoperability. It must use open-source code and not restrict anyone from participating in functional activities on the blockchain.

· A mature blockchain system must have a governance mechanism. No individual or group may unilaterally modify the blockchain's functionality and operational rules, and no individual or group's blockchain voting power may exceed 20% of the total circulating voting power.

For a project to transition from SEC regulation to CFTC regulation, it must achieve full decentralization. Tokens regulated by the SEC are considered securities, subject to restrictions and regulatory requirements similar to publicly traded companies; whereas digital commodities regulated by the CFTC have looser regulatory requirements, do not need to submit detailed reports, do not restrict token access, keep the market open to all participants, and do not even have a "qualified investor" threshold.

Prior to the enactment of this act, cryptocurrency project teams always faced a vague regulatory environment. No one could clearly define the standard for "decentralization," leading the industry to endure prolonged legal pressure. Today, this situation has completely changed. The act provides a clear legal definition of decentralization, relieving teams from chasing ever-changing or unattainable goals and instead providing a clear, quantifiable benchmark. This certainty has brought much-needed relief to industry innovators and paved a predictable path for development.

We believe that this act will encourage project teams to find a balance between "moderate centralization for performance optimization" and "advancing decentralization for market access and regulatory benefits."

《Anti-CBDC Act》

What Is Central Bank Digital Currency (CBDC)?

Central Bank Digital Currency (CBDC) is a digital version of a country's legal tender issued and regulated directly by the central bank. Compared to stablecoins, CBDC is fundamentally more subject to government control. Each transaction must go through a national centralized ledger or be monitored by it, allowing authorities to precisely track, analyze, and even restrict citizens' financial activities.

CBDC differs fundamentally from stablecoins: stablecoins are issued by private institutions backed by reserve assets such as legal tender or government bonds, hence lacking the central bank guarantee that CBDC possesses. However, because stablecoins trade on public ledgers like Ethereum or Solana, their transactions are harder for governments to scrutinize.

What Is the Anti-CBDC Act?

The Anti-CBDC Act, formally known as the "Anti-Central Bank Digital Currency Surveillance Act," is a legislative measure aimed at preventing the Federal Reserve or any U.S. government agency from creating and implementing a central bank digital currency without explicit authorization from Congress. This provision prohibits the government from searching and seizing Americans' financial data, closes loopholes to prevent indirect issuance of CBDC through third-party intermediaries, and requires any attempt to launch a U.S. digital dollar to first receive clear formal approval from the legislative branch.

Analysis of the "Anti-CBDC Act"

The "Anti-CBDC Act" redirects financial innovation and activity towards public decentralized blockchain rather than a state-controlled ledger. Combined with the "GENIUS Act" and "CLARITY Act," this legislative framework reveals a clear policy stance: the U.S. government chooses to support stablecoins on decentralized ledgers rather than centralized digital currencies on permissioned government ledgers.

This approach reduces the potential for central bank digital currency systems to dominate national financial surveillance, protecting individuals' financial privacy. By endorsing decentralized infrastructure, this legislation aligns closely with the core tenets of blockchain, ensuring users retain sovereignty over their economic lives without fear of transaction censorship.

Conclusion

Last week was a historic moment for the cryptocurrency industry.

· The "CLARITY Act" set clear standards for digital assets.

· The "GENIUS Act" established clear rules for stablecoin issuance and operation.

· Ultimately, the "Anti-CBDC Act" within the National Defense Authorization Act mitigated government surveillance risks, safeguarded privacy, and incentivized the growth of decentralized networks.

With increasing clarity in U.S. cryptocurrency regulation, the industry is witnessing a strong resurgence centered around the U.S. We see a surge in demand for local talent: teams that had previously moved overseas are returning to the U.S., and many projects are actively hiring U.S.-based experts in policy, developer relations, and partnership expansion.

Token issuance models are also shifting towards "U.S.-friendly" approaches: many projects are no longer defaulting to offshore foundation models but choosing to issue tokens directly through Delaware entities; tokenomics models are being redesigned to better align with U.S. market expectations. As demonstrated by cases like OpenSea, airdrop activities are increasingly targeting U.S. users; mainstream platforms such as Telegram are also launching Web3 wallets and apps for U.S. users, highlighting a renewed focus on the U.S. market.

A new era of regulatory certainty is injecting strong momentum into the digital asset industry, driving the thriving development of innovative stablecoin banks and payment companies. Whether industry leaders or nimble newcomers, they are swiftly rolling out institutional-grade solutions in custody, liquidity, compliance, and privacy protection, which are the core pillars of a mature crypto ecosystem. After 12 years of industry evolution, we have never been more optimistic. With rapid momentum and a robust legal framework, the U.S. is firmly solidifying its unshakable position as the "global capital of cryptocurrency."

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