Bitcoin Regulation Bill 'Closer Than Ever'
A White House official stated that a comprehensive Bitcoin market structure bill is "closer than ever" to passage. The official noted their job is to get the legislation to the President's desk for signing. The potential law would provide full regulatory clarity for the digital asset market in the United States.
- The primary piece of legislation is the Digital Asset Market Clarity (CLARITY) Act, which passed the House of Representatives in July 2025 and is now under debate in the Senate. A previous bill, the Financial Innovation and Technology for the 21st Century Act (FIT21), passed the House in May 2024 but did not advance in the Senate at the time. - A central aim of the proposed legislation is to assign clear regulatory roles to the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The framework generally grants the CFTC authority over digital commodities on decentralized blockchains, while the SEC would oversee digital assets deemed to be securities. - The White House Crypto Policy Council has been actively mediating negotiations between banking and crypto industry leaders to resolve disagreements holding up the bill. A key point of contention is a proposal to prohibit interest payments on stablecoins, an issue that previously delayed a Senate Banking Committee markup session on the CLARITY Act. - This legislative push follows the passage of the "Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act," which was signed into law in July 2025. That law established the first federal framework for stablecoins, mandating 1-to-1 backing with cash or short-term government securities. - Bipartisan efforts have been led by figures like Senators Cynthia Lummis and Kirsten Gillibrand, who introduced the Responsible Financial Innovation Act. Their proposals included provisions such as exempting crypto capital gains under $200 from taxes and deferring taxes on mining and staking rewards until the assets are sold. - SEC leadership has shifted its stance with administrative changes; former Chair Gary Gensler vocally opposed the House-passed FIT21 bill, while more recent appointees have expressed support for the CLARITY Act and established a new "Crypto Task Force" to help clarify regulations. - Industry leaders are optimistic about the bill's prospects, with Ripple CEO Brad Garlinghouse recently suggesting an 80% probability of the Clarity Act passing by the end of April 2026, citing a "logjam" breaking in Washington. This follows a significant bipartisan vote of 294-134 for the bill in the House.
