In a rapidly evolving landscape for cryptocurrency legislation, U.S. Representative French Hill, often dubbed the “Father of Crypto Bills,” has been vocal about the need to refine existing laws. At the heart of this discussion is the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, a significant milestone for the crypto industry that has set the stage for regulatory oversight of U.S. stablecoin issuers. However, Hill, along with Senator Cynthia Lummis, believes there is room for improvement, particularly in reshaping elements of the GENIUS Act through the ongoing legislative process.
Strengthening GENIUS: House Proposals
The House of Representatives recently passed the Digital Asset Market Clarity Act, which aims to bolster the structure of crypto markets. This act proposes several amendments to the GENIUS Act, as outlined in Section 512, which include holding CEOs and CFOs accountable for the accuracy of financial disclosures and mandating annual checks by accounting firms. These measures are intended to enhance transparency and integrity within the stablecoin domain.
Another key amendment is the prohibition on non-financial companies entering the stablecoin business, a move that seeks to maintain financial stability by ensuring that only entities with appropriate financial expertise and risk management capabilities participate in this market. Moreover, the amendments affirm the rights of U.S. investors to maintain hardware or software wallets for their lawful digital asset custody and engage in peer-to-peer transactions freely.
“We just thought these were ways to make GENIUS stronger and better, based on work we’ve done in the House,” Hill remarked during his appearance at CoinDesk’s Policy and Regulation event in Washington. His comments underscore the House’s commitment to refining crypto legislation in a manner that balances innovation with accountability.
Senate’s Perspective: Collaboration on Amendments
On the Senate side, Senator Cynthia Lummis, a prominent advocate for cryptocurrency, leads the Senate Banking Committee’s digital assets subcommittee. She expressed her intention to respect the House’s amendments while anticipating that the Senate’s version of the market structure bill will introduce further modifications to the GENIUS Act.
“So I do think that there will be some language that changes GENIUS,” Lummis stated, highlighting the collaborative spirit between the two chambers of Congress. This sentiment was echoed by Hill, who mentioned at a Cato Institute event that despite his preference for the House version, the ongoing cooperation between both houses aims to refine and strengthen the legislation further.
Balancing Innovation and Regulation
The ongoing dialogue between the House and the Senate reflects a broader effort to strike a balance between fostering innovation in the crypto space and ensuring robust regulatory frameworks. The Senate Banking Committee’s Republicans have released a draft version of their bill, and discussions continue as they work towards potentially finalizing the legislation by the end of the month.
However, not all senators are convinced of the draft’s readiness. Senator John Kennedy of Louisiana has expressed reservations, indicating that more work might be needed before the Senate can confidently move forward. Despite these challenges, Hill remains optimistic, emphasizing the commitment of both parties in the Senate to collaborate and reach a consensus.
“I think they can get this done,” Hill remarked, acknowledging the Senate’s relatively shorter history with these topics compared to the House, but expressing confidence in their ability to deliver effective legislation. The goal, as outlined by Tyler Williams at the Treasury Department, is to have a comprehensive market structure law in place by the end of the year. This timeline aligns with Senator Lummis’s aspirations and sets a clear target for policymakers and crypto advisers alike.
Looking Ahead: A Unified Approach
As both chambers of Congress continue to negotiate the finer details of the GENIUS Act and the broader crypto market structure, the stakes are high. The legislation holds the potential to shape the future of the U.S. cryptocurrency industry, offering clarity and stability to market participants while safeguarding investors’ rights.
The collaborative efforts between the House and the Senate signify a commitment to crafting legislation that not only addresses current challenges but also anticipates future developments in the crypto landscape. As the year draws to a close, all eyes are on Capitol Hill, where lawmakers are poised to make significant strides in defining the regulatory framework for digital assets in the United States.
With the clock ticking, the crypto community and industry stakeholders eagerly await the outcome of these legislative efforts, hopeful that the final product will pave the way for a thriving and well-regulated digital economy.
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
