Crypto Experts: Clarity Act & GENIUS Act Could Be the Industry’s Game-Changer

Regulatory winds are shifting—and crypto's biggest players are calling it a watershed moment.

The Clarity Act and GENIUS Act, two long-debated pieces of legislation, are finally gaining traction in Washington. Insiders say these bills could untangle the regulatory knot that's been stifling innovation (or enabling reckless speculation, depending on who you ask).

Why this matters now

After years of regulatory limbo—remember when the SEC sued everyone but Bitcoin?—these acts promise clear rules for token classification and decentralized platforms. No more guessing whether your altcoin is a security or a utility token.

The fine print

The GENIUS Act specifically targets DeFi protocols, potentially exempting them from archaic broker-dealer rules. Meanwhile, the Clarity Act draws bright lines between commodities and securities—something even crypto lawyers couldn't do over martinis.

Wall Street analysts are already spinning this as 'the institutional greenlight.' Translation: hedge funds might finally stop pretending they don't own ETH.

But let's not pop champagne yet. These bills still have to survive committee markups where lobbyists will turn them into legislative swiss cheese. And as any crypto vet knows: when DC says 'clarity,' they usually mean 'more paperwork.'

Genius Act has major implications for USDC, USDT

The GENIUS Act, another Core piece of legislation, is expected to significantly impact leading stablecoins, including USDC and USDT. According to Greg Magadini, the Act’s transparency requirements could benefit USDC, which stands to gain market share from USDT. In addition, stablecoin regulation is likely to influence government debt markets.

“One of the main elements of the Genius Act is the requirement for stablecoins to be backed 1-to-1 by highly liquid reserves (think US Treasury bills). This creates an implicit partnership with the US government,” Magadini explained.

Still, the bill’s most transformative effect may be in how it opens the door for traditional financial institutions to safely engage with DeFi, said Eli Cohen, General Counsel at Centrifuge. This shift could unlock major opportunities for financial innovation and deliver a meaningful boost to the real-world asset (RWA) market.