Bitcoin Investors Should Understand Proposed Legislation on Genius, Clarity, and Anti-CBDC Acts
As of August 2025, three significant pieces of legislation have been passed or are in the process of being enacted, bringing much-needed regulatory clarity and protections to the world of stablecoins and digital assets.
The GENIUS Act, signed into law on July 18, 2025, establishes a regulatory framework specifically for USD-backed payment stablecoins. The full effect of the law is expected by early 2027. The act requires issuers to be insured banks, hold 1:1 reserves, submit to audits, and comply with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) laws. This regulatory framework is expected to stabilise the stablecoin sector, encouraging mainstream financial institutions to engage more with the crypto industry, indirectly benefiting Bitcoin liquidity and adoption [1][3][5].
The CLARITY Act, which passed the House of Representatives with strong bipartisan support, aims to define clearer regulatory classifications distinguishing cryptocurrencies as commodities or securities. This move provides much-needed legal clarity for digital assets, encouraging institutional participation and potentially reducing compliance risk for exchanges and investors [2][4].
The Anti-CBDC Surveillance State Act prohibits the Federal Reserve from issuing a central bank digital currency (CBDC) without explicit Congressional approval. This act addresses privacy concerns and protects against intrusive government digital currency initiatives [2][4].
| Legislation | Status (as of August 2025) | Key Provisions/Impact | Potential Impact on Bitcoin Investors & Industry | |--------------------------------|------------------------------------------------|--------------------------------------------------------------|----------------------------------------------------------------------------------| | GENIUS Act | Signed into law, effective by Jan 2027 or earlier | Regulatory framework for payment stablecoins | Stabilises the stablecoin sector, benefiting Bitcoin liquidity and adoption | | CLARITY Act | Passed House with strong support, awaiting final steps | Clarifies regulatory classification of digital assets | Reduces regulatory uncertainty for Bitcoin and other cryptos, encouraging institutional participation | | Anti-CBDC Surveillance State Act | Part of National Defense Authorization Act | Bans Fed from issuing CBDC without Congressional approval | Assuages privacy and surveillance concerns, preserving decentralised cryptocurrencies like Bitcoin |
These laws collectively enhance institutional confidence and potential adoption in the crypto industry. While the GENIUS Act focuses narrowly on stablecoins, the CLARITY Act addresses broader crypto classification, and the Anti-CBDC Act protects privacy by restricting CBDC rollout. Bitcoin investors stand to benefit from a more stable, transparent regulatory environment, which may spur greater adoption and integration with traditional finance.
However, these acts do not directly regulate Bitcoin itself but create a clearer framework for the surrounding ecosystem, which is critical for long-term industry growth [1][2][3][4][5]. The goal of the GENIUS Act is to provide the benefits of quick and cheap transfers on digital payment rails while maintaining the privacy that crypto enthusiasts want. Many investors see Bitcoin's volatility as a feature, so long as that volatility continues to generally provide upside. The Anti-CBDC Surveillance State Act aims to prevent the development of central bank digital currencies in the U.S. The SEC and CFTC have had a multi-year turf war over jurisdictional issues, creating confusion for companies involved with Bitcoin or crypto. The billions of dollars currently held in Tether stablecoins indicate that these digital assets can and will coexist with minimal impact on the value proposition of Bitcoin.
- The GENIUS Act, signed into law in July 2025, establishes a regulatory framework for USD-backed payment stablecoins, requiring issuers to be insured banks, hold 1:1 reserves, submit to audits, and comply with Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) laws.
- The aim of the CLARITY Act, waiting for final steps in August 2025, is to define clearer regulatory classifications for cryptocurrencies, providing much-needed legal clarity distinguishing cryptocurrencies as commodities or securities.
- The Anti-CBDC Surveillance State Act, incorporated into the National Defense Authorization Act, prohibits the Federal Reserve from issuing a central bank digital currency (CBDC) without explicit Congressional approval.
- These legislative acts, enhanced institutional confidence and potential adoption in the crypto industry, collectively reducing regulatory uncertainty and potentially benefiting Bitcoin investors due to a more stable and transparent regulatory environment.
- The Anti-CBDC Surveillance State Act, among other reasons, aims to prevent the development of central bank digital currencies in the U.S., which may preserve the decentralized nature of cryptocurrencies like Bitcoin.
