Congress in the United States deliberates over governing framework for digital currencies and stable assets (cryptocurrencies and stablecoins)
In a bid to establish a structured regulatory environment for the cryptocurrency industry, the United States Senate has introduced two significant pieces of legislation: the CLARITY Act and the GENIUS Act.
The CLARITY Act, also known as the Digital Asset Market Clarity Act of 2025, aims to create a clear, comprehensive federal regulatory framework for digital assets and cryptocurrencies. The Act is designed to delineate jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Under the Act, the CFTC is given primary regulatory authority over spot digital commodities, including major cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH), while the SEC retains oversight over crypto-related securities.
The CLARITY Act establishes registration and regulatory requirements for digital commodity brokers (DCBs), digital commodity dealers (DCDs), and digital commodity exchanges (DCEs). This framework includes new definitions and requirements, such as establishing “qualified digital asset custodians” to safeguard digital assets on behalf of customers. By assigning clear regulatory roles and providing transparent rules, the CLARITY Act is expected to lower compliance costs for crypto developers, encourage institutional investment, and reduce legal ambiguity.
The GENIUS Act, alongside the CLARITY Act, reflects a bipartisan consensus to provide the sector with clear rules that balance development, stability, and consumer protection. The GENIUS Act focuses on the supervision and regulation of stablecoins, aiming to establish a clear framework for the issuance and supervision of dollar-pegged digital currencies. The Act requires full 1:1 backing, annual audits, and mandatory registration with federal regulators.
The GENIUS Act also seeks to protect financial stability and prevent private stablecoin issuers from becoming "quasi-banks" with excessive power. It aims to foster technological and financial innovation in the United States, while ensuring fair access to the Federal Reserve's payment system for crypto companies. The Act has faced criticism for not including stricter measures against money laundering and illicit financing.
The GENIUS Act, when enacted, could generate significant expectations within the crypto community for trust and legitimacy among institutional investors and everyday users. It could set a valuable precedent for other nations, serving as a model for regulatory frameworks in the crypto industry.
The United States Senate is holding a series of hearings and drafting a legislative proposal to regulate the crypto industry. Key bills on the table include the CLARITY Act, the GENIUS Act, and the Anti-CBDC Act. The CLARITY Act is seen as a catalyst for innovation in the crypto sector, facilitating startups, investors, and developers, and retaining talent and capital within the United States. The Working Group on Digital Assets Markets, created during the Trump administration, will release its first key report on July 22.
The event known as Crypto Week will take place from July 14 to 18. During this week, industry leaders, policymakers, and experts will discuss the future of cryptocurrencies and blockchain technology, and the role of these innovative technologies in shaping the global financial landscape.
In summary, the CLARITY and GENIUS Acts aim to foster innovation in the crypto industry by providing clear rules and jurisdictional clarity, establishing federal oversight for spot digital commodities and trading entities, lowering compliance costs, and aligning U.S. regulatory standards more closely with other leading crypto jurisdictions. These Acts represent a major step toward a structured regulatory environment intended to balance investor protection with the promotion of innovation and growth in the U.S. crypto market.
Sports teams could consider implementing blockchain technology for enhanced transparency and secure record-keeping in the management of contracts and player salaries. For instance, a sports franchise could use a blockchain-based system to track player contracts, ensuring that all parties adhere to the terms agreed upon.
In addition to this, blockchain technology could provide a secure, tamper-proof platform for the voting process of sports teams' decision-making bodies, such as player representatives or board members, thereby improving the overall democracy and integrity within the sports ecosystem.
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