Weekly Crypto Regulation Roundup: Trump Indicators GENIUS Act and SEC Eyes Tokenization Tweaks

In a landmark week for the U.S. crypto trade, President Donald Trump signed the GENIUS Act into legislation, following its dramatic rescue from legislative limbo simply days earlier.

The transfer marks a seismic shift within the regulatory framework for digital property, notably dollar-backed stablecoins, and signifies a broader push by the Trump administration to convey readability and management to the sector.

Concurrently, the Securities and Alternate Fee (SEC) is contemplating focused regulatory aid for tokenized securities, and Democratic lawmakers are escalating their opposition, portray the Republican-led crypto agenda as a harmful concession to trade elites.

Trump’s Crypto Comeback

Tuesday’s preliminary failure of the GENIUS Act within the Home—the place it was blocked in a 196–223 vote—despatched shockwaves by means of the crypto trade, threatening to derail what Republicans had dubbed “Crypto Week.”

However by Wednesday night time, the tide turned. In a uncommon Oval Workplace intervention, President Trump rallied Home Republicans, warning that failure to advance digital asset laws would undermine U.S. innovation and competitiveness. The technique paid off.

On July 16, a revised procedural movement handed in a 215–211 vote with zero Democratic assist, greenlighting the GENIUS Act, the Anti-CBDC Surveillance State Act, and the CLARITY Act for closing Home votes.

The GENIUS Act—quick for Guiding and Establishing Nationwide Innovation for U.S. Stablecoins—had already handed the Senate in June by a bipartisan 68–30 vote.

The invoice mandates 1:1 reserve backing for stablecoins, introduces federal licensing pathways for issuers, and firmly locations oversight duties within the fingers of prudential regulators.

SEC Softens Stance on Tokenization

In a parallel growth, SEC Chairman Paul Atkins introduced that the company is evaluating “innovation exemptions” to ease the regulatory burden on tokenization platforms and digital asset infrastructure suppliers.

Talking shortly after the Home authorized the trio of crypto payments, Atkins informed reporters that the SEC is reviewing methods to assist novel buying and selling fashions and infrastructure for tokenized securities.

“We’re at an inflection level the place expertise is outpacing regulation,” Atkins mentioned. “Somewhat than stifle innovation, we’re exploring guardrails that permit accountable experimentation, notably in tokenized fairness and real-world asset platforms.”

Such strikes trace at a softer, extra pragmatic method from the SEC underneath mounting political and trade strain. The thought of a sandbox-like exemption may assist deal with longstanding complaints from blockchain corporations that the present regulatory framework, constructed round Twentieth-century monetary fashions, is ill-suited to tokenized economies.

Democrats Push Again Exhausting

Not everyone seems to be on board with this regulatory momentum. Congresswoman Maxine Waters (D-CA), a longtime critic of the crypto trade, launched a fierce counteroffensive in opposition to the GOP’s crypto laws package deal.

In a pair of fiery press releases printed by the Home Monetary Providers Committee, Waters slammed the GENIUS and CLARITY Acts as reckless and harmful.

“This invoice, which needs to be referred to as the ‘CALAMITY Act,’ is unhealthy public coverage, plain and easy,” she wrote. “It exposes shoppers to exploitation by unhealthy actors within the crypto trade, undermines nationwide safety, and ignores Donald Trump’s escalating conflicts of curiosity tied to his private involvement in cryptocurrency.”

Waters didn’t maintain again on President Trump both, accusing him of utilizing public coverage to additional his crypto-related enterprise pursuits.

“These payments throw hardworking Individuals underneath the bus,” she mentioned, “placing them in danger for a future monetary disaster—all to legitimize Donald Trump’s crypto scams.”

In an much more blistering assertion, Waters declared the laws would “create a on line casino for crypto billionaires to make extra income,” characterizing the Republican technique as a present to “rising crypto crimes.”

What’s Subsequent?

With the GENIUS Act now legislation, consideration turns to how the laws will likely be applied. The Act offers for an 18-month rulemaking and compliance window, throughout which federal businesses will coordinate with states to finalize supervisory frameworks for stablecoin issuers.

The SEC’s potential regulatory tweaks are nonetheless within the session section, but when applied, they might supply much-needed respiration room for tokenized platforms trying to scale legally within the U.S.

In the meantime, Democrats are anticipated to proceed difficult the brand new regulatory framework, presumably by means of judicial critiques or state-level resistance.

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