CryptoWeek Update: Congress Caves, Crypto Industry Wins

Even Dems chose big tech over consumers

You don’t have to own crypto to get hurt when it crashes. Your 401(k) might already have exposure. Your friends and family could fall victim to scams. Your tax dollars could bail out the next FTX. Congress had the chance to stop this. They chose not to.

Remember 2008? Unchecked greed in one corner of the finance sector sank the entire economy. Congress just voted to let it happen again, this time with crypto.

We told you earlier this week that Washington was poised to hand the crypto industry the keys. Thursday night, they did just that with hardly a fight.

All three bills we warned about sailed through the House today. The GENIUS Act and Anti-CBDC Act, which had been bundled into the must‑pass defense bill, passed exactly as expected. However, what surprised and dismayed many observers was how many Democrats backed down on the one bill that could have imposed real oversight: the Clarity Act.

For a more indepth look at these bills, check out reporting from Thursday here:

CryptoWeek in Congress: How Washington is Handing the Crypto Industry the Keys

The GENIUS Act

The GENIUS Act, which sets a framework for stablecoins, was quietly pulled from the defense bill and passed as a standalone. This maneuver allowed the House to adopt the Senate’s text word‑for‑word and send it directly to the White House, avoiding further debate.

The vote was 308–122. More than 70 Democrats joined nearly all Republicans in voting yes, despite the bill’s well‑documented loopholes, its weak oversight provisions, and warnings from consumer advocates that it leaves the public vulnerable when the next stablecoin scheme inevitably collapses.

This was the same bill we criticized last month for giving crypto firms the legitimacy they crave while failing to impose serious accountability. The House, it seems, agreed with the industry.

See our previous reporting on the GENIUS Act here:

The GENIUS Act, Trump Mobile, and the Art of the Grift

The Anti‑CBDC Act

The Anti‑CBDC Act, which bans the Federal Reserve from even piloting a public digital dollar, was also passed, this time tucked inside the must-pass defense bill. That bill kills the idea of a safe, government‑backed digital payments option before it could even be tested, locking in the private banks and payment processors that profit from keeping the system just as it is.

The Clarity Act

This was the bill progressives had hoped to amend, the last chance to insist on transparency, accountability, and basic consumer protections.

Instead, it passed 294–134, with an astonishing 78 Democrats voting in favor, far more than the three co-sponsors we identified earlier (Craig, Davis, and Torres).

The final version defines crypto tokens as commodities, not securities, stripping the SEC of authority to regulate them and handing oversight to the CFTC, which lacks the tools and teeth to protect consumers.

Democratic amendments to include mandatory disclosures, anti‑fraud authority, consumer risk warnings, and even bans on undisclosed influencer promotions were blocked or voted down. In the end, the House delivered exactly what the industry had lobbied for, with bipartisan support.

Our Take

Today, Congress not only failed to protect consumers; it actively voted to leave them exposed.

Lawmakers sided with big tech and Wall Street over their own constituents. When the next FTX‑style collapse comes, remember who made it possible.

📢 What You Can Still Do

With the Clarity Act heading to the Senate, there’s a narrow window—likely the next 7–10 days—to ensure the bill isn't rubber-stamped. This is your final chance to push for real protections in the Senate version.

Here's what to do, now:

• Call your Senators today at (202) 224‑3121.

  Tell them firmly:

  The Clarity Act must include mandatory disclosures, anti-fraud authority, retail risk warnings, and bans on undisclosed crypto influencer promotions; otherwise, they should vote NO.

  Explain that the House version strips away the SEC's ability to protect investors, leaving people exposed.

• Hold them accountable at the midterms and any future election.

• Share this update with local organizers, consumer rights groups, and progressive networks, and urge them to mobilize constituents in Senate states.

The House failed consumers. Your Senators now hold the power to fix this. Don’t let this moment slip away.

Bibliography:

• “Crypto Industry Notches a Victory as Congress Passes Stablecoin Bill.” Barron’s, July 17, 2025.

• Consumer Reports, Advocacy Division. “House Approves CLARITY Act without Needed Protections for Consumers and Investors.” July 17, 2025.

• Financial Times. 2025. “US Congress passes landmark bill to regulate stablecoins.” July 17, 2025.

• Investors.com. “Crypto Week Scores Major Wins After House Passes Three Key Bills.” July 17, 2025.

• MarketWatch. “The Genius Act ushers in a new era for stablecoins. Here's what that means for Americans' wallets.” July 17, 2025.

• Reuters. “US House passes stablecoin legislation, sending bill to Trump.” Chris Prentice and Hannah Lang. July 17, 2025.

• The Washington Post. “House passes first major regulation for crypto industry.” July 17, 2025.

• Wired. “Congress Passes GENIUS Act in Major Win for US Crypto Industry.” July 17, 2025.

• “House Passes Crypto Bills After Trump Rallies Republicans.” Wall Street Journal, July 17, 2025.