Genius Act Bill Will Pass If Paired with CLARITY Act, What's the Reason?

As stablecoins rise in popularity and usage, US lawmakers are working to define a legal framework that brings clarity to the digital asset space. On June 17, 2025, the US Senate passed the GENIUS Act, a bill designed to regulate stablecoins. The bill arrived in the House on June 23, but it’s unlikely to move forward unless it’s coupled with another proposal: the CLARITY Act. 

According to Punchbowl News, House Majority Whip Tom Emmer emphasized that the GENIUS Act will only gain support if lawmakers also consider the CLARITY Act, which outlines how digital assets should be classified and regulated.

READ ALSO: Why the GENIUS Act Is a Turning Point for Crypto

What Is the GENIUS Act?

The GENIUS Act, or the Guiding and Establishing National Innovation for US Stablecoins Act, seeks to implement federal licensing and standards for stablecoin issuers. It aims to reduce depegging risks, promote transparency, and create a uniform set of rules across the United States. After passing the Senate, the bill has received support from some members of Congress and President Trump, who urged for its swift approval without additional conditions.

What Is the CLARITY Act?

The CLARITY Act, short for the Digital Asset Market Clarity Act of 2025, was approved earlier this month by the House Financial Services Committee. The bill seeks to define the regulatory classification of digital assets, determining whether they are securities, commodities, or another type of financial product. This classification is essential for providing clarity to both retail and institutional investors in the digital asset space. Without it, enforcement remains inconsistent and innovation is stifled.

Why Are Both Bills Connected?

While the GENIUS Act addresses stablecoins specifically, the CLARITY Act provides a broader legal context for all types of digital assets. Lawmakers argue that regulating stablecoins without defining the legal status of cryptocurrencies in general would be shortsighted. Together, the bills offer a more complete framework that can help the US lead in digital finance while reducing regulatory confusion.

Furthermore, some lawmakers are hesitant to pass the GENIUS Act alone due to concerns about potential conflicts of interest—particularly involving President Trump’s ties to World Liberty Financial, a company promoting its own stablecoin (USD1). Bundling the GENIUS Act with the more neutral and comprehensive CLARITY Act could help overcome these objections and ensure bipartisan support.

READ ALSO: GENIUS Act to be Voted on: What Will be the Result?

What Comes Next?

The CLARITY Act is expected to face a full House vote soon. If it passes, momentum for the GENIUS Act will likely build, increasing the chances of both becoming law. These bills could set the foundation for a regulated, innovation-friendly crypto economy in the US, especially at a time when other countries are rapidly moving forward with their own digital asset legislation.

Conclusion

Passing the GENIUS Act alongside the CLARITY Act isn’t just a political compromise—it’s a strategic move to bring cohesive regulation to the US digital asset market. As stablecoins gain traction and institutional players enter the space, a dual-framework approach may provide the legal certainty necessary to support long-term innovation and investor protection.

FAQ

1. What is the GENIUS Act?

A proposed US law aimed at creating federal licensing and transparency standards for stablecoin issuers.

2. What does the CLARITY Act do?

It defines how digital assets are classified under US law, distinguishing between securities, commodities, and other categories.

3. Why does the House want both bills passed together?

Together, the bills offer a complete regulatory framework for both stablecoins and broader digital assets, reducing legal gaps.

4. What is the controversy around the GENIUS Act?

Some critics cite concerns over potential conflicts of interest related to President Trump’s connections to stablecoin projects.

5. Where can I buy stablecoins safely?

You can purchase stablecoins like USDT or USDC on Bitrue after completing identity verification (KYC).