US lawmakers advanced two blockchain-related legislative efforts on May 21, approving the GENIUS Act for debate and reintroducing the Blockchain Regulatory Certainty Act in the House.
The GENIUS Act sets standards for stablecoin issuance, requiring issuers to maintain high-quality liquid reserves, typically US Treasuries or insured deposits, fully backed 1:1 against outstanding liabilities.
It prohibits offering yield-bearing products and mandates issuer compliance with know-your-customer (KYC) procedures, suspicious activity monitoring, and anti-money laundering (AML) programs.
Depending on the issuance scale, issuers must also operate under the supervision of federal authorities or federally certified state regulators.
Approval for debate includes an amendment process allowing for extensive discussion and the ability to limit it. The open-ended debate process allows senators to propose and review amendments before any final vote.
While Senate deliberations proceed, lawmakers in the House reintroduced a separate measure to improve regulatory clarity for developers.
The bill, also known as the “Blockchain Regulatory Certainty Act,” proposes a federal safe harbor that would prevent developers and node operators from being treated as money transmitters, financial institutions, or other regulated intermediaries solely by producing or maintaining blockchain software.
The measure specifies “blockchain developer” as any entity creating or maintaining software for decentralized networks and defines “control” as the legal authority to unilaterally access and transact with digital assets without a third party.
Furthermore, the bill states that developers or service providers cannot be subject to state or federal licensing obligations unless they control users’ digital assets. It also clarifies that the bill does not preempt intellectual property law or prevent states from enforcing compatible regulatory frameworks.
The House did not schedule the markup or floor vote of the Blockchain Regulatory Certainty Act. Yet, it signals renewed momentum on the House side to differentiate custodial and non-custodial actors in digital asset ecosystems.
