Championed by Senate Majority Leader John Thune and supported by President Donald Trump, the bill seeks to solidify the US as a global crypto leader. However, Senator Elizabeth Warren strongly opposes it due to inadequate consumer protections and ethical concerns about Trump’s crypto ties. Meanwhile, the House is also progressing on the CLARITY Act, which outlines roles for the SEC and CFTC in regulating digital assets and ensures user protections. It received strong committee support and now heads to the House floor. Separately, Representative William Timmons pressed the SEC for transparency on Ethereum’s regulatory status, and criticized the agency's inconsistent stance.
Senate Moves Forward on GENIUS Act
The US Senate took a major step toward regulating stablecoins by voting 68-30 to advance the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act. The bipartisan support came more than a month after the bill was first introduced, with Senate Majority Leader John Thune championing the legislation on the floor. Thune echoed President Donald Trump’s position that the bill could help the US become the “crypto capital of the world,” and stated that it could bring cryptocurrency further into the mainstream.
The vote to invoke cloture sets the stage for full debate and a potential floor vote, which could send the bill to the House of Representatives if it passes. Thune acknowledged that there is still a lot more work to be done regarding digital asset regulation.
Senate Majority Leader John Thune
However, not all lawmakers are on board. Senator Elizabeth Warren voiced her strong opposition, and criticized the Senate for failing to consider key bipartisan amendments. She warned that the GENIUS Act contains major flaws, including weak consumer protections and national security safeguards. Warren also raised ethical concerns tied to Trump’s personal involvement in the crypto sector through his family-backed platform, World Liberty Financial.
She accused the president of using crypto incentives, including dinners and privileged access, as tools to solicit support from foreign governments and wealthy donors in exchange for political favors like pardons and tariff exemptions.
President Donald Trump and David Sacks
While many Democrats supported advancing the bill, it is still uncertain whether it will secure enough backing for final passage, particularly in a chamber where Republicans have only a narrow majority. After the bill’s initial failure to advance in May, Trump’s top crypto advisor, David Sacks, expressed confidence that the GENIUS Act will eventually pass with bipartisan support. Meanwhile, the House version of stablecoin legislation, the STABLE Act, continues to undergo scrutiny in the Financial Services Committee.
CLARITY Act Heads to Full House Vote
The US House Committee on Financial Services also recently voted to advance the Digital Asset Market Clarity (CLARITY) Act, which is a major legislative proposal with the goal of establishing a comprehensive framework for crypto market regulation. With a 32-19 vote on Tuesday, the bill now heads to the full House of Representatives for consideration, after a prior 47-6 approval from the House Agriculture Committee. This dual-committee approval is a key milestone in congressional efforts to clarify regulatory oversight of the digital asset space.
The CLARITY Act is designed to delineate the responsibilities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in overseeing the crypto industry. It introduces provisional registration requirements for digital asset platforms, including crypto exchanges and broker-dealers, while also mandating adherence to disclosure rules, customer asset segregation, and recordkeeping standards. The legislation specifically includes protections for users, like the right to hold assets in non-custodial wallets and to conduct peer-to-peer transactions without interference.
Representative French Hill, who sponsored the bill, believes that it will create a fair and forward-looking regulatory environment that includes all participants in the crypto ecosystem. He described it as a foundational step for American leadership in Web3 technologies and tokenized financial services. Crypto Subcommittee Chairman Bryan Steil, who previously led a stablecoin bill, is excited about the progress that was made, and called the latest vote a huge achievement.
Hill also introduced an amendment that seeks to protect non-controlling blockchain developers from being classified as money transmitters, shielding them from certain regulatory burdens that could stifle innovation.
Despite the progress, some Democrats voiced concerns. Representative Maxine Waters proposed changes that are aimed at preventing potential conflicts of interest tied to President Donald Trump’s crypto ventures. She believes that the legislation could be used to benefit Trump and his family.
Representative Brad Sherman introduced a separate amendment seeking to prohibit potential industry bailouts, due to skepticism from some lawmakers about broader industry incentives. The bill now awaits debate and a vote on the House floor.
Lawmaker Presses SEC Over ETH Status
In other regulatory news, Republican Representative William Timmons formally requested that US SEC Chair Paul Atkins release internal documents with detail about the agency’s historical stance on Ethereum (ETH) under previous leadership, particularly during Gary Gensler’s tenure. In a letter that was submitted Tuesday, Timmons urged transparency regarding the SEC’s shifting views on whether ETH qualifies as a security. This very question has long been a point of contention for both regulators and the crypto community.
Part of William Timmons’ letter
Timmons argued that the SEC under Gensler failed to provide a consistent or coherent regulatory framework for digital assets, and he mentioned Ethereum as a prime example. He pointed to 2018 remarks by former SEC Director of Corporate Finance William Hinman, who publicly stated that ETH and Bitcoin should not be classified as securities. In contrast, Timmons claimed that Gensler, as SEC Chair, consistently avoided confirming ETH’s status during congressional hearings.Timmons specifically cited a hearing in April of 2023 where Gensler declined to clarify ETH’s classification, despite the fact that the SEC reportedly approved an investigation into ETH’s status just days earlier.
The situation became even more complex in 2024 when the SEC approved spot Ether exchange-traded funds (ETFs), a move that would typically imply that ETH is not considered a security. Just weeks after the ETF approvals, the SEC officially closed its investigation into ETH. According to Timmons, this series of contradictory actions caused a lot of confusion among investors and market participants, which undermined regulatory confidence in the US crypto space.
Timmons' letter adds political pressure to an already ongoing legal battle involving Coinbase. In 2023, the exchange filed a Freedom of Information Act (FOIA) request seeking access to SEC documents on ETH. When the SEC denied the request, Coinbase initiated legal action, which resulted in a court ruling requiring the SEC to release certain records. Some of these disclosed documents were later published by Coinbase, and revealed that even federal prosecutors were unable to obtain a clear stance from the SEC on Ethereum’s regulatory status.
