Last Thursday, after two extensive sessions, every Republican barring 12 and over 100 Democrats gave a hearty nod to the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. This bill, aimed at regulating payment stablecoins, was signed into law by Trump approximately 24 hours later. The remaining two bills, the Digital Asset Market Clarity (CLARITY) Act and the Anti-CBDC Surveillance State Act, will now proceed to the Senate for review as both chambers prepare for the August recess.

The trio of bills resulted from the Republicans’ “crypto week” initiative, which emphasized the need for regulatory clarity in the digital asset industry. Despite efforts by some Republican lawmakers to portray their efforts as “non-partisan” or bipartisan, most spectators at the GENIUS Act signing were members of their party or Trump allies. Meanwhile, Democrats persist in raising concerns about potential conflicts of interest relating to Trump’s personal crypto ventures in debates over related bills. This suggests that Senate Democrats might still challenge the remaining two bills.

Senate Republicans are anticipated to first address the crypto market structure. This bill would set guidelines for regulators like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), and clarify which tokens are considered securities under US law.

On Tuesday, four Republican senators released a discussion draft of their version of a crypto market structure bill, building on the CLARITY Act. The proposed legislation, the Responsible Financial Innovation Act, suggested that the House’s efforts to establish a crypto market structure might have been a trial run for the Senate’s bill.

Regardless of whether the CLARITY Act or the Responsible Financial Innovation Act becomes the final product desired by Republicans, either bill must pass both chambers to land on Trump’s desk. The anti-CBDC bill faces similar hurdles, with only two Democrats in the House supporting it.

In the midst of these discussions, the Senate has yet to vote on the nomination of Brian Quintenz to chair the CFTC. Despite the imminent August recess, the Senate Agriculture Committee plans to vote on Quintenz’s nomination. Meanwhile, the CFTC is still dealing with staffing issues, with only two commissioners currently serving.

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