Trump’s “Crypto Week” Sparks New Legislation but Caution is Advised
There’s a lot of buzz around what President Trump has dubbed “Crypto Week,” but experts are urging some restraint when celebrating developments in the cryptocurrency arena.
The House of Representatives has recently approved three significant bills targeting the regulation of digital assets, marking a crucial juncture for the industry. Yet, it seems these legislative shifts won’t be implemented for some time.
Three Key Crypto Bills Passed
The bills—Genius Law, the Clear Act for Digital Asset Markets, and the Anti-CBDC Surveillance National Law—are seen as vital steps toward building a regulatory framework for cryptocurrencies. This initiative has been fueled by vigorous lobbying from industry stakeholders, including Coinbase Global, who have gained traction with politicians, Trump included.
In the lead-up to this legislative week, Bitcoin prices soared to a record high, crossing $123,000 for the first time, along with other cryptocurrencies like Ethereum (ETH) and XRP witnessing considerable gains. However, TD Securities analyst Jaret Seiberg cautions that it might take more than a year for the new laws to take effect.
Among the bills passed, only the Genius Act has made it through the Senate, and Trump quickly signed it into law afterward. This act outlines a framework for the regulation of stablecoins in transactions, mandating that issuers maintain a one-to-one reserve in US dollars or Treasury securities.
Treasury Secretary Scott Bessent believes this law could generate an additional $3.7 trillion demand for Treasury Bills. However, analysts like Raymond James’ Edmills are skeptical about such optimistic predictions.
Uncertain Implementation Timeline
Despite the Genius Act being signed, there won’t be any immediate effects for stablecoin publishers such as Circle Internet Group and Tether.
Reportedly, the Treasury is poised to draft regulations regarding who can issue term coins within a year, as well as the conditions under which diplomatic stablecoins may enter the US market. This process involves public commentary that might spark legal challenges, indicating that substantial changes in the industry could be delayed.
Furthermore, clarity in digital asset markets is essential, especially regarding the regulatory oversight of crypto exchanges, brokers, and tokens, which falls between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
With bipartisan support in the House, there’s optimism that the Senate might also pass a version before the August break, potentially allowing a comprehensive law for the president to sign by September.
The third piece of legislation, the Anti-CBDC Surveillance National Act, aims to restrict the Federal Reserve from introducing Central Bank Digital Currency (CBDC). This bill was passed with a narrower margin and is tied to defense legislation, meaning its journey through the Senate may involve lengthy negotiations that could stretch until December.
