The U.S. crypto regulatory landscape is shifting on two fronts simultaneously. The CLARITY Act is approaching a critical Senate vote after clearing the House in July 2025. At the same time, the GENIUS Act, signed into law last summer, entered a new phase this week as federal agencies began publishing implementation rules. Together, these two bills represent the most concrete regulatory framework the U.S. has put forward for digital assets.
We agree. Thank you @SecScottBessent for saying it. It's time to pass the Clarity Act.
— Brian Armstrong (@brian_armstrong) April 10, 2026
Grateful for all the bipartisan work among Senators and staff over the past several months to make this a strong bill. https://t.co/jHoZ1bfLVZ pic.twitter.com/YBKebDkq8B
What the CLARITY Act Does
The CLARITY Act, formally known as the Digital Asset Market Clarity Act of 2025, draws a clear line between two regulators. The CFTC gains exclusive jurisdiction over digital commodity spot markets, covering exchanges, brokers, and dealers. The SEC retains authority over assets that qualify as investment contracts. This division has been one of the most contested questions in U.S. crypto policy for years.
The bill also includes safe harbors for DeFi developers, validators, and tokens that transition from securities to commodities over time. It requires registration for digital commodity intermediaries and prioritizes consumer protection alongside innovation. The House passed the bill on July 17, 2025, by a 294-134 vote, with bipartisan support from 21 co-sponsors.
The Senate Is the Final Hurdle
The CLARITY Act has sat with the Senate Banking Committee since its House passage. The committee is now scheduled to resume discussions following the Easter recess, which ended April 9. Senator Bill Hagerty stated on April 6 that remaining issues are not insurmountable, and he expects the bill to clear the Banking Committee in April.
The urgency is real. Senator Bernie Moreno has warned that if the bill does not advance before May, digital asset legislation may stall for years. Treasury Secretary Scott Bessent added pressure this week by warning Congress that delays are pushing crypto innovation to Singapore and Abu Dhabi. SEC Chair Paul Atkins confirmed the SEC and CFTC are aligned and ready to implement the bill the moment it passes.
One remaining point of friction involves stablecoin yield. The current draft bans passive interest payments to stablecoin holders, a restriction that Coinbase has rejected. Banks support the provision. Senator Cynthia Lummis noted the yield issue is about 99% resolved, though a final compromise has not been published. Independent analysts put the bill’s odds of passage at roughly 52% as of early April.
The GENIUS Act Is Already Law — And Entering Enforcement
While the CLARITY Act awaits a Senate vote, the GENIUS Act is in a different phase entirely. The bill, which stands for the Guiding and Establishing National Innovation for U.S. Stablecoins Act, passed the Senate 68-30 in June 2025 and the House 308-122 in July 2025. President Trump signed it into law on July 18, 2025.
The GENIUS Act applies specifically to stablecoin issuers. It requires full one-for-one reserve backing with U.S. dollars, short-term Treasuries, or cash equivalents. It classifies stablecoin issuers as financial institutions under the Bank Secrecy Act. As a result, issuers must run continuous AML monitoring, file Suspicious Activity Reports, screen transactions against OFAC sanctions lists, and maintain detailed records of counterparties.
New Rules Dropped This Week
This week, federal agencies began publishing the implementing regulations. The FDIC approved a notice of proposed rulemaking on April 7, establishing a prudential framework covering capital requirements, risk management, redemption standards, and deposit insurance coverage for reserve assets. Treasury’s Financial Crimes Enforcement Network issued joint proposed rules with OFAC for AML and sanctions compliance. Treasury also released a separate proposal allowing smaller issuers, those with less than $10 billion in outstanding stablecoins, to opt into a state-level regulatory regime if it meets federal equivalency standards.
Most implementing regulations carry a deadline of July 18, 2026, which marks one year from the bill’s signing. Issuers are now in an active compliance window with firm deadlines ahead.
What This Means for USDC and USDT
The two largest stablecoins are responding differently to the GENIUS Act. Circle, which issues USDC, publicly supported the bill and aligned its existing practices with the new requirements. Circle already maintains monthly attestations, cash and Treasury-backed reserves, and auditable records. The GENIUS Act largely codifies what Circle was already doing.
Tether, which issues USDT from outside the U.S., faces a more complicated path. USDT itself does not qualify as a GENIUS Act-compliant stablecoin under the current framework. However, Tether launched a new product called USA₮ on January 27, 2026. USA₮ is issued by a nationally chartered U.S. bank and meets the GENIUS Act’s compliance requirements, with Tether providing the underlying technology and branding.
The Bigger Picture
The CLARITY Act and the GENIUS Act address different layers of the same problem. The GENIUS Act handles stablecoin issuers: who can issue dollar-pegged tokens and what rules they must follow. The CLARITY Act handles everything else: spot trading platforms, token classification, and the broader market structure question.
If both are fully in effect by late 2026, the U.S. will have a more complete regulatory framework for digital assets than any prior period. That does not guarantee smooth implementation. Enforcement, litigation, and compliance costs will create friction across the industry. But for institutional participants who have waited on regulatory clarity before entering the market, the direction is now clear.
The Senate’s April calendar will be a key signal. If the Banking Committee advances the CLARITY Act this month, the window for passage before a potential stall remains open. If it slips to May, the outlook becomes materially less certain.
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