The US House Passes The CLARITY and GENIUS Bills. What Are The Benefits?

In a jaw-dropping marathon session that stretched nearly 10 hours, the U.S. House of Representatives on Wednesday advanced two groundbreaking crypto bills, the CLARITY Act and the GENIUS Act, marking what could be a turning point in America’s approach to digital asset regulation.

The vote, which ended in a nail-biting 217–212 tally, was not only the longest procedural vote in congressional history, but also a political drama that unfolded. The delays, negotiations, shifting alliances, and one key promise from former President Donald Trump helped push the bills past the gridlock and into the spotlight.

So, What Really Happened?

A group of Republicans, initially holding out on support, dramatically changed their position after closed-door talks with Trump. Their demand? Iron-clad protections against the possible creation of a government-backed digital dollar, often called a Central Bank Digital Currency (CBDC).

A scenario where the government could potentially track every digital penny spent by American citizens.

That fear wasn’t unfounded. Privacy advocates and conservative lawmakers have raised red flags about CBDCs being used to monitor individual transactions.

So, in a bid to break the stalemate, strong anti-CBDC provisions were tacked onto the CLARITY Act, essentially banning the federal government from launching a surveillance-style digital dollar. That last-minute deal tipped the scales, and the bills were finally allowed to move forward.

Why Are The CLARITY and GENIUS Bills Important?

The CLARITY Act, which is spearheaded by House Agriculture Committee Chair G.T. Thompson, with support from Reps. Dusty Johnson and Bryan Steil seek to end the long-standing confusion over whether certain digital assets are securities or commodities.

Why does that matter? Because it dictates who gets to regulate them, the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). Right now, crypto firms are stuck in a guessing game, and regulators are in a turf war. CLARITY is designed to settle that.

On the other hand, the GENIUS Act, authored by crypto-friendly lawmaker Tom Emmer, takes a forward-thinking approach. It focuses on boosting innovation in emerging technologies, particularly blockchain and artificial intelligence. It’s not just about regulation; it’s about staying ahead of China and the EU in the tech race.

Think of it as a blueprint for Web3 and beyond, where American developers and entrepreneurs can build without fear of unclear or outdated laws slowing them down.

The Anti-CBDC Twist

Perhaps the biggest twist in this saga was the anti-CBDC provision. It wasn’t initially part of the plan, but it quickly became the price of progress. Tom Emmer, who also introduced the separate Anti-CBDC Surveillance Act, made sure those privacy protections were embedded into CLARITY before his Republican colleagues gave their nod.

“The American people deserve freedom over their finances,” Emmer posted on X, formerly Twitter. “No digital dollar that tracks your every move.”

What’s Next?

With the procedural hurdle cleared, the full House vote could come as early as Thursday. Lawmakers like French Hill are confident that bipartisan support will carry the bills through. If that happens, insiders say Trump is poised to sign the GENIUS Act into law before the week wraps.

For the crypto industry, this moment is monumental. After years of limbo, lawsuits, and mixed messages from regulators, the CLARITY and GENIUS Acts promise to finally draw the line in the sand. Industry leaders are hailing it as a victory for innovation, consumer rights, and financial freedom. Rep. Bryan Steil summed it up best: “After the longest House vote in history… Crypto Week continues on!”