U.S. 2025 Crypto Update on the CLARITY Act, CBDCs & the Crypto Political Landscape
August 1, 2025
Washington has entered a decisive phase for crypto and digital finance. A suite of landmark bills—the CLARITY Act, GENIUS Act, and Anti‑CBDC Surveillance State Act—passed the U.S. House in July, signaling a sweeping regulatory turnaround for digital assets. Simultaneously, Trump’s executive order has placed CBDC development on indefinite hold.
1. CLARITY Act (H.R. 3633): Crypto Regulation Comes into Focus
- House Vote: Passed July 17, 2025 by 294–134 (including 78 Democrats in favor)
- Advances: Committee versions in both Financial Services and Agriculture merged in late June 2025
- Core Provisions:
- Clarifies SEC vs. CFTC jurisdiction: digital commodities vs. securities
- Safe‑harbor for token issuances ≤ $75M; maturity track certification within 12 months
- Self‑custody rights, federal preemption of conflicting state laws
- Registration and disclosure regime for exchanges/brokers acting under CFTC oversight
If enacted, this would usher in a regulatory structure centered on asset function and network maturity, not enforcement ambiguity.
2. The Anti‑CBDC Surveillance State Act: U.S. Rejects Digital Dollar
- Passed: July 17, 2025 House, vote 218–210, mostly along party lines
- Mandate: Prohibits federal agencies (including the Fed) from issuing, promoting, or piloting a CBDC without Congress .
- Executive Order: On January 23, 2025, Trump formally revoked Biden-era CBDC mandates and imposed a total moratorium on digital dollar efforts .
- Design Group: Mandated within the same order—a government advisory task force to propose a digital-asset framework within 180 days .
3. GENIUS Act & Crypto Week Momentum
- GENIUS Act: Establishes stablecoin issuer licensing rules and consumer protections; aimed at regulating ~$238B stablecoin market (coindesk.com).
- “Crypto Week”: During mid‑July 2025, all three major bills passed after intense legislative activity, including procedural hurdles and partisan tussles (Cointelegraph).
4. CBDC Landscape: U.S. Isolation and Global Surge
- Global Pulse: As of mid‑2025, 72 countries are working on CBDCs and another 35 exploring—global adoption accelerating (reuters.com).
- U.S. Standalone: Unlike most peers, the U.S. has completely halted CBDC development, making it an outlier
- Fed Pilot Program: In March 2025, the Fed briefly launched a digital dollar pilot with JPMorgan, BofA, and Citibank testing use cases in Texas and California—a program now effectively suspended under Trump’s EO (thesiliconreview.com).
- Fed Leadership View: Fed Chair Powell reaffirmed during Congressional testimony that no CBDC will be launched while he remains in office (through May 2026) (investopedia.com).
5. Market & Political Impacts
- Crypto Markets: Bitcoin has surged from ~$70K pre-election to ~$120K, fueled by pro‑crypto legislative momentum and reduced regulatory risk
- Industry Response:
- Token projects and exchanges welcome clarity under CFTC oversight.
- Cardano, ADA and other decentralized blockchains stand to benefit under commodity classification guidelines
- Criticisms:
- Consumer groups and SEC watchdogs warn the CLARITY Act may dilute investor protections and empower corporate token issuances with less oversight (Cointelegraph).
- FT columnist Christopher Smart cautions that banning CBDCs risks marginalizing the dollar in global digital finance networks like mBridge (Financial Times).
6. What Happens Next? Timeline
- Senate Review: The CLARITY Act (H.R. 3633) now heads to the Senate—its fate uncertain, with potential amendments sought by moderates and consumer advocates.
- Presidential Signature: Trump has signaled support; passage would likely see immediate enactment and CFTC/SEC rulemaking beginning in 2026 (Cointelegraph, BeInCrypto).
- CBDC Advisory Report: Biden-era AI advisory group—now restructured under Trump—expected to publish digital‑assets policy recommendations later in 2025.
- Stablecoin Regulation: With GENIUS already passed Senate earlier, it’s expected to become law—and implementation begin in 2026.
Strategic Insights
| Audience | Recommended Actions |
|---|---|
| Investors | – Increase exposure to BTC, ETH, Cardano as commodities – Hedge ahead of Senate vote – Treat political progress as bullish signal |
| Businesses | – Prepare for CFTC oversight regimes – Engage on stablecoin licensing rules – Explore non‑CBDC payment integration, e.g. FedNow pilot partnerships |
| Consumers | – Expect continued support for self‑custody wallets – Use DeFi platforms with clear regulation – Stay alert for wallet/disclosure compliance changes |
Closing Remarks.
The summer of 2025 marks a paradigm shift in U.S. crypto policy. From previously ambiguous enforcement to legislative clarity, from cautious digital dollar research to a full halt—crypto is now central in policymaking. Investors, businesses, and consumers must adapt quickly. The Senate’s decisions this fall will determine whether the U.S. embraces a new digital finance era or cedes ground to international CBDC networks.
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