GENIUS Signed into Law as US Crypto Regulation Efforts Continue
The US government has passed two key laws related to cryptocurrency regulation: GENIUS Act and CLARITY Act. GENIUS regulates payment stablecoins, such as USDC, and their issuers, while CLARITY aims to regulate the broader crypto market.
GENIUS was signed into law on July 18, 2025, and its main framework is expected to be effective by January 18, 2027. It addresses issues like reserve disclosure, redemption procedures, and insolvency priority for stablecoin issuers.
CLARITY, on the other hand, has passed the House but has not yet become law. It attempts to regulate token offerings, digital commodities, and trading intermediaries, while preserving the SEC's authority over securities transactions.
The two laws are designed to work together, with GENIUS regulating payment stablecoins and CLARITY addressing market structure issues.