On May 21, US lawmakers made progress on two blockchain-related legislative initiatives by approving the GENIUS Act for debate and reintroducing the Blockchain Regulatory Certainty Act in the House. The motion to proceed with the Government and Enterprise Need for Innovation in the United States Act, or GENIUS Act, passed by a 69–31 vote, enabling formal debate and amendment processes to commence. This motion followed a successful cloture vote of 66–32 on May 19, which concluded initial negotiations and indicated bipartisan support for the bill. Senate Debate on the GENIUS Act The GENIUS Act establishes standards for stablecoin issuance by requiring issuers to hold high-quality liquid reserves, such as US Treasuries or insured deposits, fully backed 1:1 against outstanding liabilities. It forbids offering yield-bearing products and mandates that issuers comply with know-your-customer (KYC) rules, suspicious activity monitoring, and anti-money laundering (AML) programs. Depending on the volume of issuance, issuers must also operate under the oversight of federal regulators or federally certified state regulators. The approval for debate includes an amendment process, permitting detailed discussion and limitations on debate. This open-ended process allows senators to propose and assess amendments before the final vote. Blockchain Regulatory Certainty Act Simultaneously, House lawmakers reintroduced another bill aimed at enhancing regulatory clarity for blockchain developers. Representatives Tom Emmer (R-MN) and Ritchie Torres (D-NY) filed the Blockchain Regulatory Certainty Act to formally protect software developers and blockchain service providers who do not hold custody of customer assets. Known as the “Blockchain Regulatory Certainty Act, ” this bill proposes a federal safe harbor that prevents developers and node operators from being classified as money transmitters, financial institutions, or other regulated intermediaries solely for creating or maintaining blockchain software. The legislation defines a “blockchain developer” as any party that creates or maintains software for decentralized networks and defines “control” as legal authority to unilaterally access and transact with digital assets without third-party involvement. Additionally, the bill states that developers or service providers are exempt from state or federal licensing requirements unless they control users’ digital assets.

It also clarifies that the legislation does not override intellectual property laws or prevent states from enforcing compatible regulatory rules. The House has not yet scheduled a markup or floor vote on the Blockchain Regulatory Certainty Act. Nevertheless, its reintroduction signals renewed momentum in the House to distinguish between custodial and non-custodial participants within digital asset ecosystems. Mentioned in this article