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    CLARITY Act vs GENIUS Act: how the two crypto laws fit together

    The GENIUS Act, signed in July 2025, regulates payment stablecoins, while the CLARITY Act would regulate the wider crypto market by dividing oversight between the SEC and CFTC.[1][2] The CLARITY Act builds on GENIUS definitions, and its Senate version would extend the GENIUS ban on stablecoin interest from issuers to crypto platforms, the issue banks and crypto firms fought over most.[3][4][5]

    Editor reviewedStrict sourcingUpdated CryptoTech policy

    The two bills were designed as a pair. The GENIUS Act deals with stablecoins, tokens meant to hold a fixed value. The CLARITY Act deals with how other crypto assets are traded and who regulates them.[6][2] Only the first is law.[1][7] This page is for information only and is not financial or investment advice.

    Side by side

    GENIUS ActCLARITY Act
    What it coversPayment stablecoinsDigital commodity markets and intermediaries
    Main regulatorsFederal and state stablecoin regulatorsCFTC for digital commodities; SEC for securities
    House vote308-122, July 17, 2025294-134, July 17, 2025
    SenatePassed 68-30, June 17, 2025Cloture failed 49-50, September 15, 2026
    StatusPublic Law 119-27Pending on the Senate calendar

    Sources for the table: GENIUS votes and status,[8][9][1] CLARITY votes and status,[10][7][11] and regulators.[12][2][13]

    How they connect

    The House voted on both bills on the same day in July 2025.[14][8] The CLARITY Act borrows the GENIUS Act’s definition of a regulated stablecoin.[3] It also keeps those stablecoins out of its “digital commodity” category, so the two laws do not overlap.[15] The GENIUS Act says regulated stablecoins are neither securities nor commodities.[16]

    H.R. 3633 defines “permitted payment stablecoin” by cross-reference to section 2 of the GENIUS Act.[3] Its digital commodity definition excludes permitted payment stablecoins, alongside securities and deposits.[15] The GENIUS Act amended the securities laws and section 1a(9) of the Commodity Exchange Act to remove stablecoins from permitted issuers from the definitions of security and commodity.[16] Stablecoin regulation therefore sits outside the SEC-CFTC split that the CLARITY Act draws for other tokens.

    The yield fight

    The biggest point of contact is interest on stablecoins. The GENIUS Act bars issuers from paying holders interest or yield solely for holding, using or keeping a stablecoin.[17] That rule covers issuers, not the exchanges and apps where people hold stablecoins. The Senate Banking version of the CLARITY Act would apply a similar ban to digital asset service providers and their affiliates, and would exclude registered issuers, which GENIUS already covers.[4][18] It would allow rewards based on genuine activity that are not equivalent to bank-deposit interest.[19]

    Banks wanted that ban tightened. On September 10, 2026, nearly 80 state bankers associations, with the American Bankers Association and Independent Community Bankers of America, asked senators to close what they called the payment-of-interest loophole.[5] They warned of deposit flight from community banks.[20] Consumer groups raised the same concern about yield-like rewards.[21] On the other side, Coinbase withdrew support for a January 2026 Senate draft, at a time when banks were lobbying against crypto yield.[22][23] The competing positions are set out in the CLARITY Act debate.

    What happens if the CLARITY Act does not pass

    The GENIUS Act stays in force regardless. It takes effect on the earlier of 18 months after enactment or 120 days after regulators issue final rules.[24] Without the CLARITY Act, the rules for crypto trading would come from the SEC and CFTC using their existing powers.[25][26] Such rules can be reversed by a future administration.[27]

    Questions readers ask

    What is the difference between the GENIUS Act and the CLARITY Act?

    The GENIUS Act is a 2025 law on payment stablecoins. The CLARITY Act is a pending bill that would set rules for trading other crypto assets, mainly by giving the CFTC authority over digital commodity markets.[1][2]

    Were they passed together?

    The House passed both on July 17, 2025, under the same rule. The GENIUS Act was signed the next day; the CLARITY Act stalled in the Senate.[14][1][7]

    Can crypto platforms pay interest on stablecoins?

    The GENIUS Act bars issuers from paying interest solely for holding a stablecoin. The Senate Banking version of the CLARITY Act would extend a similar ban to digital asset service providers, while allowing activity-based rewards. That version is not law.[17][18][19]

    Is a stablecoin a digital commodity under the CLARITY Act?

    No. The House text excludes permitted payment stablecoins from its digital commodity definition, and the GENIUS Act says such stablecoins are neither securities nor commodities.[15][16]

    Sources

    Each numbered claim is a statement we checked against the sources listed with it. Status shows how well established it is.

    1. [1]

      The President signed the GENIUS Act on July 18, 2025, and it became Public Law 119-27. confirmedas of 2026-10-10

    2. [2]

      According to the Congressional Research Service summary, the bill would make the CFTC the general regulator of digital commodity transactions, including digital commodity exchanges, brokers and dealers. confirmedas of 2026-10-10

    3. [3]

      The House text defines a permitted payment stablecoin by reference to the GENIUS Act. confirmedas of 2026-10-10

    4. [4]

      The Senate Banking yield ban applies to digital asset service providers and their affiliates, and excludes registered stablecoin issuers, which the GENIUS Act already covers. confirmedas of 2026-10-10

    5. [5]

      On September 10, 2026, nearly 80 state bankers associations joined the American Bankers Association and Independent Community Bankers of America in urging senators to use the bill to close what they call a stablecoin interest loophole. confirmedas of 2026-10-10

    6. [6]

      The GENIUS Act defines a payment stablecoin as a digital asset used for payment or settlement whose issuer must redeem it for a fixed amount of monetary value. confirmedas of 2026-10-10

    7. [7]

      On September 15, 2026, the Senate rejected cloture on the motion to proceed to H.R. 3633 by 49 to 50 (Rollcall Vote No. 234), with Sen. Chris Coons not voting. confirmedas of 2026-10-10

    8. [8]

      The House passed the GENIUS Act on July 17, 2025, by 308 to 122, the same day it passed the CLARITY Act. confirmedas of 2026-10-10

    9. [9]

      The Senate passed the GENIUS Act on June 17, 2025, by 68 to 30. confirmedas of 2026-10-10

    10. [10]

      The House passed H.R. 3633 on July 17, 2025, by a vote of 294 to 134 (Roll no. 199). confirmedas of 2026-10-10

    11. [11]

      Sen. Tim Scott reported the bill to the Senate on June 1, 2026, and it was placed on the Senate calendar as Calendar No. 423. confirmedas of 2026-10-10

    12. [12]

      State-qualified stablecoin issuers with no more than $10 billion outstanding may opt for a substantially similar state regulatory regime. confirmedas of 2026-10-10

    13. [13]

      According to the CRS summary, the bill gives the SEC jurisdiction over digital commodity activity by certain brokers and dealers on alternative trading systems and by national securities exchanges. confirmedas of 2026-10-10

    14. [14]

      The House took up the CLARITY Act and the Senate-passed GENIUS Act stablecoin bill (S. 1582) under the same rule, H. Res. 580, in July 2025. confirmedas of 2026-10-10

    15. [15]

      The House text's digital commodity definition excludes securities, security derivatives, permitted payment stablecoins and bank deposits. confirmedas of 2026-10-10

    16. [16]

      The GENIUS Act amended the securities laws and the Commodity Exchange Act so that a stablecoin from a permitted issuer is neither a security nor a commodity. confirmedas of 2026-10-10

    17. [17]

      The GENIUS Act bars stablecoin issuers from paying holders interest or yield solely for holding, using or retaining a payment stablecoin. confirmedas of 2026-10-10

    18. [18]

      The Senate Banking text bars digital asset service providers from paying interest or yield to US customers solely for holding payment stablecoins. confirmedas of 2026-10-10

    19. [19]

      The Senate Banking text permits rewards based on bona fide activities or transactions that are not economically equivalent to interest on a bank deposit. confirmedas of 2026-10-10

    20. [20]

      The bank associations warned that failing to close the loophole would cause deposit flight from community banks and reduce local lending. confirmedas of 2026-10-10

    21. [21]

      The consumer coalition's concerns were weak anti-money-laundering requirements, unaddressed conflicts of interest for public officials, and loopholes allowing yield-like stablecoin rewards. confirmedas of 2026-10-10

    22. [22]

      On January 14, 2026, the Senate Banking Committee called off a planned markup of its market structure bill after Coinbase publicly withdrew its support for the draft. confirmedas of 2026-10-10

    23. [23]

      Coinbase CEO Brian Armstrong's objections to the January 2026 Senate Banking draft included what he described as a de facto ban on tokenized equities and DeFi provisions giving the government access to users' financial records. reportedas of 2026-10-10

    24. [24]

      The GENIUS Act takes effect on the earlier of 18 months after enactment or 120 days after regulators issue final implementing rules. confirmedas of 2026-10-10

    25. [25]

      On August 18, 2026, the SEC proposed Regulation Crypto Assets, with a one-time $5 million exemption over four years and a $75 million per-12-month exemption for certain crypto asset investment contracts. confirmedas of 2026-10-10

    26. [26]

      On October 5, 2026, the CFTC published an advance notice of proposed rulemaking on crypto asset transactions, including a new "crypto asset market" subcategory of designated contract market. confirmedas of 2026-10-10

    27. [27]

      Law firm analyses note that agency rules, unlike a statute, can be reversed by a future administration or challenged in court. reportedas of 2026-10-10· interpretation

    Revision history (1)
    1. Page created.

    Created Oct 10, 2026. Last reviewed by an editor on Oct 10, 2026. Next scheduled review: Dec 10, 2026.

    Cite this page

    "CLARITY Act vs GENIUS Act: how the two crypto laws fit together." ContentLora, updated Oct 10, 2026. https://contentlora.com/explain/clarity-act-vs-genius-act

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