CLARITY Act Will Do For Crypto What GENIUS Did For Stablecoins

Patrick Witt, Executive Director of the President's Council of Advisors for Digital Assets, says clear crypto regulation is already delivering tangible results, and argues the next major piece of legislation could do the same for the broader digital asset market.

Witt pointed to the GENIUS Act as proof that legislative clarity accelerates real-world adoption. "What GENIUS did for stablecoins, the Clarity Act will do for all other digital assets," he said.

From Stablecoins to the Broader Market

The GENIUS Act established a federal regulatory framework for payment stablecoins and passed with bipartisan support in the Senate in June 2025 before clearing the House in July 2025. Witt's argument is that the CLARITY Act can replicate that momentum across the wider crypto space. Formally known as the Digital Asset Market Clarity Act of 2025, it is the most comprehensive piece of crypto regulation ever to pass one chamber of Congress, clearing the House of Representatives in July 2025 with a 294-134 vote. The bill would establish a regulatory framework for digital assets other than stablecoins and divide jurisdiction between the CFTC and the SEC based on the functional activity and decentralization of a given digital commodity. The Senate has yet to pass the bill.

The CLARITY Act seeks to define and rationalize the boundaries of SEC and CFTC jurisdiction, addressing what many stakeholders have described as "regulation by enforcement," a dynamic that has created legal uncertainty and constrained participation by traditional financial institutions.

Open USD Launch Underscores the Momentum

Witt cited the recent unveiling of Open USD as a concrete example of what legislative clarity can unlock. More than 140 companies, including Visa, Stripe, Mastercard, BlackRock and Coinbase, have joined Open Standard to launch Open USD ($OUSD), a new stablecoin that shares most of the earnings from its reserves.

Open USD's pitch to corporate adopters rests on three stated design principles: businesses can mint and redeem the token at no cost and with no volume caps; partners receive nearly all of the earnings generated on the token's reserves after a management fee; and the asset is governed collectively rather than by one company.

The launch comes as stablecoins move further into mainstream finance. Once used primarily by crypto traders, dollar-pegged tokens are increasingly powering cross-border payments, merchant settlements and corporate treasury operations. The stablecoin market is valued at approximately $307 billion, and the consortium's backers have projected it could reach $1.5 trillion by 2030.

For Witt, the scale of the Open USD consortium is precisely the kind of outcome that follows when Washington provides a workable regulatory foundation. With the CLARITY Act still awaiting Senate action, the White House is pushing for that foundation to extend to all digital assets.

Sources:
The Block: Visa, Stripe, Coinbase and more join Open USD stablecoin
Latham and Watkins: US Crypto Policy Tracker, Legislative Developments
Arnold & Porter: Clarifying the CLARITY Act