Republicans have a slim majority in the House; therefore, the stablecoin bill will need at least some Democratic support to pass.
Senator Cynthia Lummis has said that she expects the CLARITY Act and GENIUS Act to pass through Congress and reach the president’s desk for signature by the end of the year. The two bills aim to provide clarity on stablecoins and market structure.
Lummis talked about the progress of the Digital Asset Market Clarity Act (CLARITY Act) in the House of Representatives and the GENIUS Act in the Senate at the Bitcoin Policy Summit in Washington, D.C.
She said she would be “extremely disappointed” if the two bills were not passed by 2026. The CLARITY Act is expected to face a full House vote soon, while the Genius Act has moved to the House of Representatives.
Trump’s involvement in the crypto industry
The senator from Wyoming said it would be hard to get support from both parties for crypto-related bills because of “concern that certain people that have family members in the administration are going to be advantaged in some way by what we’re doing.”
“I don’t want to come up with a piece of legislation that the other side of the aisle feels they haven’t had adequate input in,” Lummis said.
Among the Senators who voted for the GENIUS Act bill on June 17, 18 out of 68 were Democrats. However, others have said they won’t support any bills until they talk about US President Donald Trump’s involvement in the crypto space and how it could be used for personal gain.
The bill has a part that says Congresspeople and their families can’t make money off of stablecoins. However, that prohibition does not extend to the president and his family, even as Trump has built a crypto empire from the White House.
As reported by Cryptopolitan, Trump held a private dinner at his golf club in Virginia last month for top investors in a Trump-branded meme coin. He and his family have a big share in World Liberty Financial, a cryptocurrency project that made USD1 as its own stablecoin.
A public financial report shows that Trump made $57.35 million from selling tokens at World Liberty Financial in 2024. Funds from a meme coin connected to him have brought in about $320 million, but the money is being split among several investors.
Republicans have a slim majority in the House. Therefore, the market structure and stablecoin bills will need at least some Democratic support to pass. Ideally, the GENIUS Act could be ready before Congress’s recess in August. Trump said that he is willing to sign the bill with “no add-ons” from the House if it were to pass quickly.
Connection between the CLARITY Act and the GENIUS Act
The CLARITY Act gives all kinds of digital assets a legal framework, while the GENIUS Act only talks about stablecoins. Lawmakers say it would be short-sighted to regulate stablecoins without first deciding what the law says about crypto coins.
Together, the bills make a stronger framework to help the US become a leader in digital banking and clear up regulatory issues.
Some lawmakers are also hesitant to pass the GENIUS Act by itself because of concerns about possible conflicts of interest. This is especially true regarding President Trump’s ties to World Liberty Financial’s stablecoin. Putting the GENIUS Act together with the more balanced and thorough CLARITY Act might help get past these concerns and ensure support from both parties.
Also, as stablecoins become more popular and big players from the financial world join the market, a two-framework approach might give the legal certainty needed to support long-term innovation and protect investors.
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