CryptoWeek in Congress: How Washington is Handing the Crypto Industry the Keys
Bills bundled with defense spending, plus the standalone that may be our only chance
This week, Congress is hosting what has been dubbed CryptoWeek, a flurry of legislative activity that could shape how digital assets are regulated in the United States for years to come. The crypto industry has lobbied hard for this moment, and the bills moving through the House reflect just how much influence they’ve amassed.
For progressives and consumer advocates, the picture isn’t pretty. Two industry‑friendly bills have been attached to the must‑pass defense bill, virtually guaranteeing their survival. A third bill, being debated separately, offers the only real chance to impose meaningful oversight and transparency.
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The GENIUS Act: A Framework That Leaves Consumers Behind
The GENIUS Act, which establishes a regulatory regime for stablecoins, has already passed the Senate and is now tied to the National Defense Authorization Act (NDAA) in the House.
Supporters, mostly Republicans and a handful of centrist Democrats, tout it as a way to modernize the dollar and bring stablecoins under a “clear” regulatory framework. The crypto industry and fintech firms, unsurprisingly, have lobbied heavily for its passage, eager for the legitimacy it confers and the weak standards it imposes.
Progressive Democrats, meanwhile, warn that the bill’s enforcement mechanisms are toothless. The required audits and disclosures leave ample loopholes for manipulation and misrepresentation. Consumer advocates point out that it legalizes stablecoins without adequately protecting the people who stand to be harmed when — inevitably — some of these schemes collapse.
Our earlier reporting in The GENIUS Act, Trump Mobile, and the Art of the Grift noted how the bill coincided with Trump launching his own branded mobile phone business. The symbolism was hard to miss: policy and profit moving hand in hand.
Read our article on the GENIUS Act when it was before the Senate here:
The Anti‑CBDC Act: Killing the Public Option Before It Exists
Also bundled into the NDAA is the Anti‑CBDC Surveillance State Act, which bans the Federal Reserve from even piloting a Central Bank Digital Currency (CBDC).
Republicans and libertarians frame the measure as a defense of privacy. They argue that a digital dollar would allow the government to monitor transactions and erode individual freedom.
But the bill’s real effect is to shut down a promising public payments option before Americans even get to debate it. A well‑designed CBDC could help unbanked and underbanked Americans access a low‑cost, reliable alternative to the predatory products offered by private banks and fintech companies.
So why the fierce opposition? Beyond ideology and privacy rhetoric, much of the resistance stems from banks and payment processors, who view a CBDC as a threat to their business models. If individuals could hold digital dollars directly with the Fed, banks and card networks would be cut out of the middle, losing fee revenue and control. The GOP, backed by financial industry donors, has been more than willing to protect those interests under the banner of “freedom.”
Bundled Into the Defense Bill
Attaching these two bills to the NDAA is a classic Washington move. The NDAA funds the military and is one of the few pieces of legislation that reliably passes Congress every year.
By attaching the GENIUS Act and the Anti-CBDC Act to it, Republican leadership ensures that they pass with minimal debate or amendment. Senators, who already passed the GENIUS Act on its own, will now face an even harder time stripping out controversial provisions. Voting against the NDAA risks being painted as “anti‑troops,” a line few lawmakers are unwilling to cross.
Who Controls the Money? Why the Parties Split
At first glance, it seems contradictory that Republicans are championing the GENIUS Act, which empowers private crypto issuers, while opposing a CBDC, which simply digitizes the dollar. And equally strange that Democrats, who are usually skeptical of big tech, oppose GENIUS but support the government issuing digital currency.
But the real dividing line is about who controls the money and who profits from it.
For Republicans:
Stablecoins keep money creation in private hands, aligning with their free‑market ideology.
A CBDC would disintermediate banks and payment processors, threatening the profits of key donors.
They frame CBDCs as “socialist” and “surveillance” tools, but also protect the financial industry’s business model.
For Democrats:
Stablecoins appear to be unregulated, risky schemes that are already harming working people.
A CBDC offers a public option, a safe, affordable alternative to private financial intermediaries.
It aligns with the idea that essential infrastructure should serve the public, not just profit‑seeking corporations.
What Makes a Digital Dollar Different From the Cash in Your Wallet?
At its core, a CBDC is still a U.S. dollar, just in a different form. Like the physical dollar, it is backed by the full faith and credit of the United States.
But the digital form changes how it can be accessed and used:
No need for a bank account or credit card — individuals could hold and transfer money directly through a government‑backed digital wallet.
Payments would be instantaneous and free — no overdraft fees, no payday lenders, no waiting for checks to clear.
Banks and card companies would lose their monopoly over the financial rails — and their ability to extract fees from every transaction.
Depending on its design, it could include strong privacy protections — though industry talking points have exaggerated surveillance concerns.
See our reporting this spring about the risks of cryptocurrency:
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The Clarity Act: The Last Chance to Get It Right
The Clarity Act, unlike the other two, is being debated as a standalone bill. It addresses the fundamental question: Are crypto tokens securities or commodities?
That distinction determines which agency regulates them and what rules apply.
Securities (SEC jurisdiction): Strong disclosure rules, registration requirements, investor protections, and robust enforcement.
Commodities (CFTC jurisdiction): Looser oversight, weaker enforcement, little protection for spot‑market retail investors.
The industry wants tokens to be treated as commodities, placing them under the CFTC’s light‑touch regime. For progressives, treating tokens as securities is critical because the SEC’s framework is far better equipped to protect consumers and hold issuers accountable.
Why Crypto Needs to Be a Security, Not a Commodity
The commodity designation effectively allows the industry to police itself while consumers shoulder the risk.
If tokens are treated as securities, issuers would have to:
Register their offerings, disclosing who owns the company and how it operates.
Publish audited financial statements.
Clearly warn investors of risks in plain language.
Open themselves up to SEC enforcement and lawsuits if they mislead the public.
The SEC’s investor‑protection framework exists precisely to prevent the kind of scams, conflicts of interest, and instability that have already plagued the crypto markets. CFTC oversight alone would leave these gaps wide open.
What Must Be Added to the Clarity Act
Even if Congress insists on classifying tokens as commodities, the Clarity Act must be amended to include at least minimal safeguards:
Mandatory Disclosures: Issuers should disclose audited reserves, ownership, and material risks.
Anti‑Fraud Authority: Regulators must have the power to crack down on deceptive claims of “decentralization” and other schemes.
Risk Warnings for Consumers: Exchanges and wallets should clearly display warnings about volatility, the lack of FDIC insurance, and the risk of loss.
Equity and Consumer Education Fund: A portion of the fees and penalties should be allocated to fund programs that educate vulnerable communities and assist victims of fraud.
Ban on Undisclosed Promotions: Celebrities and influencers must disclose when they are paid to promote a token.
Who Holds the Keys
Three Democrats have co‑sponsored the Clarity Act alongside Republicans, providing bipartisan cover: Angie Craig (MN), Don Davis (NC), and Ritchie Torres (NY).
Their support has kept the bill moving, but their constituencies — working‑class, rural, and vulnerable urban communities — are the ones most at risk in a poorly regulated crypto market. They should be urged to demand these amendments before lending their names to a bill that otherwise favors industry over consumers.
The Stakes
CryptoWeek is shaping up to be a goldmine for the industry. The GENIUS Act and Anti-CBDC Act have been safely bundled into the NDAA and are likely to pass with little resistance. That leaves the Clarity Act as the last real opportunity to push back and insert meaningful protections for the public.
The next few days may be the only chance in this Congress to insist that innovation doesn’t come at the expense of oversight and accountability. If these Democrats and others are serious about safeguarding their constituents, now is the time to act.
What You Can Do
Lawmakers are deciding this week whether to let the crypto industry write its own rules or to advocate for consumer protection. The GENIUS Act and Anti‑CBDC Act are already buried in the must‑pass defense bill, but the Clarity Act is still in play.
We need them to hear from you.
Here’s how:
Call the U.S. Capitol Switchboard: (202) 224‑3121
You’ll be connected to your representative’s office.
📄 Sample Script:
Hi, my name is [YOUR NAME], and I’m a constituent calling from [CITY]. I’m urging the Representative to demand real consumer protections in the Clarity Act before voting for it, or to vote NO if it remains a giveaway to the crypto industry. Congress should treat tokens as securities, not commodities, and strengthen transparency and oversight. Please don’t let the industry write its own rules at the expense of the public. Thank you.
You can also specifically ask them to pressure Reps. Angie Craig, Don Davis, and Ritchie Torres to lead the charge on amendments, but all members should hear from you.
Support the Groups Doing the Work
If you want to stay engaged beyond this week, here are some watchdog and grassroots organizations tracking these bills and advocating for consumers:
Public Citizen (citizen.org) — Fighting corporate influence and pushing for stronger oversight.
Americans for Financial Reform (ourfinancialsecurity.org) — Advocating for accountability and fairness in financial markets.
Color of Change (colorofchange.org) — Focused on how predatory financial practices hurt Black communities.
Better Markets (bettermarkets.org) — Promoting financial stability and consumer protection.
Public Money Action (publicmoneyaction.org) — Advocating for a public digital dollar and equitable access to financial infrastructure.
Consider signing their petitions, amplifying their messages on social media, or making a donation if you’re able.
Together, we can remind Congress that the public is watching and that the rules of our financial system should work for everyone, not just those who can afford to influence them.
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Bibliography:
“Watchdog: Here’s How House Republicans’ Crypto Bills Bolster Trump’s Business Empire While Putting American Interests at Risk.” Accountable.US, July 2025.
“Fact Sheet: CLARITY Act Worse than Last Year’s FIT 21 Crypto Deregulation.” Americans for Financial Reform, July 11, 2025.
“Overview and Analysis of the CLARITY Act.” McMillan LLP Insights, July 16, 2025.
“House Republicans Plan ‘Crypto Week’ Votes on Industry‑Backed Bills.” The Washington Post, July 8, 2025.
“Standing Up to the Lawless Crypto Industry.” Better Markets, July 2025.
“GENIUS Act Back on Track in House after Massive Delay.” Axios, July 17, 2025.
“Genius Act, Clarity Act, Crypto Week, and Why It All Matters.” Barron’s, July 14, 2025.
“Crypto Week Is About to Kick Off in Congress. Here’s What It Could Mean for the Market.” Business Insider, July 14, 2025.
“State of Crypto: Previewing Congress’ Crypto Week.” CoinDesk, July 11, 2025.
“Clarity Act Explained: What It Means for Crypto Week and Beyond.” CoinTelegraph, July 2025.
“Trump’s Support for the GENIUS Act Lifts Bitcoin, Crypto Stocks after Minor Hiccup.” Investopedia, July 16, 2025.
“Crypto Week: Senate Stablecoin Legislation vs. House Republicans’ Agenda.” Politico, June 17, 2025.
“Crypto Bills Hit Procedural Snag in Congress.” Reuters, July 15, 2025.
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I don’t want the coins. I like using cash.