In 2025, the US Congress enacted several significant laws that established a broad legislative framework for stablecoins for the first time and took steps to organize the digital asset market. The main event was the passage of GENIUS—a federal law that places payment stablecoins under the supervision of banking regulators and introduces full reserve requirements. Simultaneously, the House passed the CLARITY act on digital assets, and the Senate debated the Boozman-Booker bill concerning CFTC authority.
GENIUS Act: A New Era in Stablecoin Regulation
Key Provisions of the GENIUS Act
GENIUS became the first comprehensive federal regulation for payment stablecoins, removing them from SEC and CFTC oversight and transferring supervision to banking authorities. The law establishes that payment stablecoins are not considered securities or commodity contracts for the purposes of the respective agencies. This change shifts the oversight paradigm and defines a new regulatory domain for issuers.
Stablecoin Reserve Requirements
Issuers are required to fully back their stablecoins with cash or short-term US Treasury securities, and they are prohibited from paying interest on these reserves. The law also mandates compliance with the Bank Secrecy Act, meaning enhanced anti-money laundering controls and customer identification procedures. These rules set a strict foundation for issuers’ reserves and operational transparency.
Tiered Oversight Model
GENIUS introduces a tiered supervisory approach: issuers with market capitalization below $10 billion may fall under state regulation, while larger participants will be overseen by a federal regulator. This approach divides responsibility between levels of government based on issuer size and potential risks. It creates a differentiated compliance regime for players of varying scale.
Senator Kirsten Gillibrand’s Commentary
Senator Kirsten Gillibrand emphasized that GENIUS aims to protect consumers and support innovation, enabling businesses and the public to benefit from next-generation financial products. This stance reflects lawmakers’ intent to balance oversight with market development. For details on GENIUS implementation, see materials on the first FDIC stablecoin rules.
Digital Asset Market Regulation: CLARITY Act and Boozman-Booker Proposal
What the CLARITY Act Proposes
The House passed CLARITY, which sets criteria for when tokens are considered digital commodities subject to CFTC oversight. The law includes a "blockchain maturity" mechanism allowing assets to exit securities regulation as the network decentralizes. This provides a formal pathway for token transfers between legal regimes.
Senator Cory Booker’s Position and the Boozman-Booker Bill
The Senate debated the bipartisan Boozman-Booker bill, which proposes granting the CFTC exclusive jurisdiction over spot digital commodity markets and imposing strict custody and retail consumer protection requirements. Senator Cory Booker stated the bill would strengthen consumer safeguards and equip the agency to oversee the growing market. Thus, the House and Senate offer differing approaches to market structure that must be reconciled.
Differences and Outlook
CLARITY and Boozman-Booker differ in methodology and regulatory strictness: one offers a maturity path for assets, the other a more stringent, prescriptive model with exclusive CFTC jurisdiction. Lawmakers’ main task is to harmonize definitions and jurisdictional boundaries before further regulatory steps. For a general overview of policy changes, see the 2025 cryptocurrency policy review.
CBDC and Tax Regulation in 2025
Restrictions on CBDC Issuance
The House passed the CBDC Anti-Surveillance State Act, which limits the Federal Reserve’s ability to issue a retail central bank digital currency without explicit Congressional approval. This effectively places a legislative barrier on CBDC rollout without direct legislative mandate. The decision reflects lawmakers’ concerns about control and oversight in central bank digital currency issuance.
Repeal of IRS DeFi Broker Rule
Lawmakers used the Congressional Review Act to repeal the IRS rule requiring tax reporting for DeFi brokers, thereby protecting non-custodial wallets and decentralized protocols from burdensome reporting obligations. Reporting requirements for traditional custodial intermediaries remain intact. This change reduces regulatory pressure on certain decentralized services.
Impact of New Laws on the Market
The enacted measures provide clarity on stablecoins and related topics while leaving key market structure issues unresolved. Legislative initiatives have framed rules around the riskiest areas and set regulator priorities for the near term. The final market development picture will depend on ongoing efforts to reconcile House and Senate proposals.
Why This Matters
For miners, the key takeaway is that GENIUS changes the rules for payment stablecoins: they are now under banking regulator supervision and must be fully reserve-backed. This affects the stability and legal status of stablecoins you can use for payments or revenue storage, as well as the availability of yield-bearing products, which are now prohibited on such reserves. Understanding this foundation helps evaluate counterparties and maintain operational transparency.
Restrictions on CBDC issuance and repeal of the IRS DeFi broker rule have indirect relevance for mining: lawmakers have reduced short-term legislative risks related to retail digital currency control and tax reporting for non-custodial protocols. Meanwhile, jurisdictional disputes between the SEC and CFTC remain unresolved, maintaining uncertainty around digital commodity trading and custody rules. Monitoring reconciliation outcomes is important for business planning.
What To Do?
- Check which stablecoins you use and verify with issuers whether their reserves comply with GENIUS requirements; prefer issuers with transparent reserve policies.
- Document transactions: keep records of stablecoin inflows and outflows and wallet transfers to assist with custodial service requests and potential tax inquiries.
- Assess counterparties for compliance: favor platforms and providers operating under new rules and able to confirm custody compliance.
- Follow market structure regulatory developments (CLARITY vs. Boozman-Booker), as final CFTC jurisdiction decisions may change trading and custody rules; periodically review analytical summaries, including our 2025 policy review.
- If you use DeFi services, note the IRS rule repeal but maintain careful reporting and monitor custodial intermediary terms; details on tax changes are available in tax policy materials, such as new tax rules for miners.
FAQ
What did GENIUS change for stablecoins?
GENIUS established a federal framework for payment stablecoins, placing them under banking regulator oversight, requiring 100% reserves in cash or short-term US Treasury bonds, and prohibiting interest payments on these reserves.
Who will oversee spot digital commodity markets?
The House and Senate propose different approaches: CLARITY sets criteria for digital commodities, while Boozman-Booker proposes exclusive CFTC jurisdiction; final decisions require reconciliation.
How did Congress affect CBDC and DeFi tax rules?
Congress limited retail CBDC issuance without explicit approval and repealed the IRS DeFi broker rule, protecting non-custodial wallets and decentralized protocols from additional reporting requirements.