US House Passes 3 Major Crypto Bills Before August Recess

The bipartisan support for the first two bills indicates that there is growing political momentum behind establishing clearer crypto market rules. Meanwhile, President Donald Trump is expected to sign the GENIUS Act and may also issue an executive order allowing 401(k) retirement plans to invest in cryptocurrencies and other alternative assets. In addition to this, Trump recently nominated Eric Tung, a lawyer with extensive crypto industry ties, to the influential Ninth Circuit Court of Appeals. House Passes Three Crypto Bills The US House of Representatives passed three key pieces of cryptocurrency legislation after delays caused by Republican debates over central bank digital currencies (CBDCs). In a session that was held Thursday, lawmakers approved the Digital Asset Market Clarity (CLARITY) Act with a 294-134 vote, the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act with a 308-122 vote, and the Anti-CBDC Surveillance State Act by a narrower margin of 219-210. Voting in the CLARITY Act (Source: US House of Representatives ) The passage of these bills is a massive legislative milestone in the US digital asset landscape. Almost 80 Democrats voted in favor of the CLARITY Act, while more than 100 supported the GENIUS Act. The support from both parties for two of the three bills suggests that there is growing bipartisan momentum for crypto regulation, though the Anti-CBDC legislation is still deeply divisive. Republicans strongly rallied behind the legislative package as part of their self-declared “crypto week.” However, the legislative process was delayed on Wednesday as some Republicans demanded a clearer stance against the development of a US CBDC. Industry stakeholders mostly welcomed the House’s approval of the bills. Summer Mersinger, former commissioner of the Commodity Futures Trading Commission (CFTC) and current CEO of the Blockchain Association, praised the Anti-CBDC measure as a defense of individual financial freedom and market competition. Despite this optimism, the opposition was also quite vocal. Representative Maxine Waters of California condemned the bills during a press conference she branded as “anti-crypto corruption week,” and warned that the proposed legislation could weaken federal financial safeguards and open the door to systemic risks similar to the 2008 financial crisis. Truth Social post from President Donald Trump President Trump is reportedly ready to sign the GENIUS Act by Friday, assuming it remains unchanged after passing the Senate in June. Meanwhile, the CLARITY and Anti-CBDC bills will proceed to the Senate for further consideration. This means that they could be amended before returning to the House or reaching the president’s desk. Trump Eyes Crypto in 401(k) Plans President Donald Trump is also reportedly preparing to sign an executive order that could open the door for American 401(k) retirement plans to invest in alternative assets beyond traditional stocks and bonds, including cryptocurrencies. According to a report by the Financial Times , the executive order may be signed as early as this week and would direct regulatory agencies in Washington to explore how 401(k) plans could incorporate digital assets, metals, and funds related to infrastructure projects, corporate acquisitions, and private lending. President Donald Trump The initiative could cause a big shift in the investment options available to American workers saving for retirement. While the Financial Times cited anonymous sources familiar with the matter, White House spokesman Kush Desai warned that no decision should be considered final unless confirmed by President Trump himself. This potential move follows the US Labor Department’s May decision to rescind restrictions imposed during the Biden administration that limited the inclusion of cryptocurrencies in 401(k) plans. The regulatory rollback may also pave the way for more institutional involvement in digital assets. Meanwhile, private firms have already started moving in this direction. In April, financial services giant Fidelity, which manages $5.9 trillion in assets, launched a new crypto-enabled retirement account for American investors. The broader 401(k) market consisted of over 715,000 plans that held $8.9 trillion in assets in September of 2024. Fidelity crypto offering At the state level, North Carolina lawmakers introduced legislation in March that would allow up to 5% of various public retirement funds to be allocated to cryptocurrencies like Bitcoin. Internationally, pension funds in the United Kingdom and Japan also explored crypto allocations. In November, UK-based Cartwright reported that an undisclosed pension scheme committed 3% of its assets to Bitcoin, while Japan’s Government Pension Investment Fund was weighing the digital asset as a diversification strategy. If enacted, Trump’s executive order could be a historic development in the intersection of digital assets and retirement savings. Trump Picks Crypto Ally for Appeals Court Eric Tung, a corporate lawyer who is well known for representing major players in the crypto space, has been nominated by President Donald Trump to serve as a judge on the Ninth Circuit Court of Appeals. The nomination was sent to the Senate on Tuesday, but Tung’s potential appointment drew a lot of attention due to his deep ties to the digital asset industry. If confirmed, he will preside over appeals from nine western states, including California, a hub for tech and crypto companies. Trump nominations Tung is currently a partner at law firm Jones Day, and previously represented high-profile crypto clients like the Blockchain Association in its legal challenge against the US Treasury Department over sanctions on Tornado Cash. He also served as counsel in a case against BitMEX’s parent company and defended stablecoin issuers by arguing that some sales do not constitute securities offerings. Watchdog group Accountable.US criticized the nomination, and warned that Tung’s record suggests he may support deregulating the crypto sector as part of the Trump administration’s pro-crypto agenda. The group specifically mentioned his history of challenging regulatory oversight of smart contracts and stablecoins.

Source: Coinpaper