U.S. Takes Lead in Crypto Regulation with GENIUS and CLARITY Acts

The United States has solidified its position as a regulatory frontrunner in the cryptocurrency sector with the passage of the GENIUS Act and the advancement of the CLARITY Act. These legislative measures mark a pivotal shift toward structured oversight of digital assets, particularly stablecoins.

The GENIUS Act establishes a bifurcated licensing system for stablecoin issuers, segregating requirements by market capitalization. Issuers below $10 billion may operate under state licenses, while larger entities face federal oversight. Reserve transparency takes center stage, with mandatory monthly disclosures and annual audits for major players.

Notably, the Act reclassifies stablecoin issuers as financial institutions under the Bank Secrecy Act, imposing stringent AML and KYC protocols. FinCEN faces a three-year deadline to develop innovative surveillance mechanisms for illicit activity detection.