US House Advances Groundbreaking Crypto Regulation Bills

Download IPFS

In a major step forward for the digital asset industry, the United States House of Representatives has agreed to consider several key pieces of cryptocurrency legislation. The move comes after former President Donald Trump intervened to help break a political deadlock, signaling strong momentum toward the nation’s first federal regulatory framework for digital currencies.

The first bill expected to pass focuses on stablecoins, a type of cryptocurrency designed to maintain a fixed value, typically pegged 1:1 to the US dollar. These digital assets are widely used in crypto trading due to their speed and low transaction costs. The proposed legislation would provide a federal structure to govern their issuance and use, aiming to create stability in a market often criticized for its volatility. The stablecoin bill has advanced through the Senate committee but has not yet cleared the full United States Senate; if passed by the House, it would still require final Senate approval before heading to Trump’s desk.

A second bill under review would define the market structure for digital assets, clarifying when they are considered commodities regulated by the Commodity Futures Trading Commission (CFTC) and when they fall under the Securities and Exchange Commission (SEC)’s jurisdiction as securities. This measure seeks to bring clarity to the regulatory gray areas that have long plagued the industry and hampered innovation in the United States.

The third legislative proposal would prohibit the Federal Reserve (Fed) from issuing a Central Bank Digital Currency (CBDC), a concept that has raised privacy concerns among many conservatives. Critics argue that a government-backed digital dollar could lead to excessive surveillance and control over private financial transactions. Federal Reserve officials have publicly stated they are not currently pursuing such a currency.

House Majority Whip Tom Emmer, a Republican from Minnesota and a vocal proponent of digital freedom, announced that the bill blocking a Fed-issued digital currency would be tied to a larger defense authorization package as part of a broader legislative strategy.

Tuesday’s initial attempt to move the bills forward was blocked after some conservative Republicans joined Democrats in a procedural vote. However, Trump’s private discussions with dissenting lawmakers appeared to sway the outcome, allowing a second round of votes to proceed. Even so, Republican leadership spent hours working to persuade holdouts, particularly those who objected to the legislation being considered in separate pieces.

If passed, these measures would mark a turning point in how the United States approaches the rapidly evolving crypto sector, potentially offering a more defined and innovation-friendly legal environment. The industry, long frustrated by regulatory uncertainty, is watching closely as Congress inches toward real reform.