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U.S. Crypto Week: The Essentials Guide

Jul 17, 2025

Author: Team SOOHO.IO

'What is Crypto Week?'


In July 2025, three cryptocurrency-related bills are simultaneously being discussed in the U.S. Congress, marking a turning point in global blockchain regulation. This period, referred to as 'Crypto Week', is a special legislative period set up by the U.S. House of Representatives to process key regulatory bills (GENIUS Act, CLARITY Act, Anti-CBDC Surveillance State Act) that the cryptocurrency industry has long sought.


This ambitious 'Crypto Week' faced a dramatic political crisis on July 15, as the procedural vote on three major bills failed 196-223, nearly derailing a legislative process worth billions of dollars. However, President Trump invited opposing lawmakers to the White House that evening to persuade them, promising a re-vote, which dramatically reversed the situation, and a re-vote was scheduled.


The discussed bills are expected to have a direct impact not only on regulatory changes within the U.S. but also on the Korean blockchain fintech ecosystem. Since the U.S. is a hub of global finance and the center of the dollar-based monetary system, the passage of these bills is likely to set new standards for the global cryptocurrency market.


In this blog from SOOHO.IO, we will explore the three bills of Crypto Week.



Key Contents of the Three U.S. Bills Covered in 'Crypto Week'


1. GENIUS Act (Stablecoin Regulation Act)


The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) provides the first federal level stablecoin regulation framework in the U.S. Shall we look at what is included in the regulatory framework?



1:1 Dollar Peg Requirement - Lessons from the Terra Luna Incident


Even those unfamiliar with the cryptocurrency market may have heard of the Terra Luna Incident in 2022, where the algorithmic stablecoin UST of Terra Luna crashed from $1 to $0.1 in a single day, evaporating a market worth $50 billion. UST attempted to maintain its price solely through an algorithm without actual dollar reserves, leading to this crash.


To prevent such incidents, the GENIUS Act stipulates that all stablecoins must be backed 100% by high-quality liquid assets and cannot be backed by speculative investments or cryptocurrencies. This means it will only be guaranteed by safe assets, much like bank deposits.



Monthly Disclosure Reports - Resolving Tether (USDT) Transparency Controversy


The largest stablecoin, Tether, has long faced scrutiny over its stability due to its lack of transparency regarding its reserves. In 2021, it was revealed through investigations that Tether was not 100% backed by dollars as claimed, leading to a case where they paid $41 million in fines to the Commodity Futures Trading Commission.


The GENIUS Act sets standards requiring stablecoin issuers to disclose their reserve compositions in detail every month and undergo independent audits. This is similar to the obligation of publicly traded companies to disclose financial statements.



Segregation of Reserves - Preventing Misuse of Customer Assets in FTX


In November 2022, the FTX exchange declared bankruptcy, revealing that customer deposits were unlawfully lent to founder Sam Bankman-Fried's personal investment firm, Alameda Research. The CFTC ordered Bankman-Fried to pay $12.7 billion in restitution and he was convicted of using customer funds unlawfully. Customers believed their funds were safely stored but were actually misused for personal investments and operating expenses.


The GENIUS Act completely prohibits the lending or pledging of stablecoin reserves for other purposes. The principle is that customer funds must be kept solely for the customers, making large-scale asset misappropriation like that of FTX structurally impossible.



Dual Licensing System - Systemic Risk Management


The dual licensing system is one where different regulatory agencies oversee stablecoins depending on their scale. It is similar to how regional banks are overseen by state governments while large banks are regulated by the federal government.


The larger the stablecoin, the greater its impact on the entire financial system. Large stablecoins like Tether (about $100 billion) or USDC (about $30 billion) can affect not only the cryptocurrency market but also traditional financial markets, creating "systemic risks." In contrast, smaller stablecoins generally have limited impacts on the overall system as they are used regionally or for specific purposes.


The dual licensing system proposed by the GENIUS Act distinguishes that assets with a market cap of $10 billion or more are federally regulated, while those below that are state-regulated.

  • Large Stablecoins ($10 billion or more): Directly supervised by federal agencies such as the Federal Reserve or FDIC, requiring strict reserve management and stress testing

  • Small Stablecoins (less than $10 billion): Managed by state governments, allowing for more flexible regulations to encourage innovation and lower entry barriers, aiming to help regionally specialized services or new experimental models to enter the market more easily.



2. CLARITY Act (Digital Asset Clarification Act)


The CLARITY Act clearly distinguishes the regulatory classification that was ambiguous regarding whether cryptocurrencies are securities or commodities, allowing businesses to operate blockchain ventures without legal uncertainties. Let’s take a closer look at this bill.



Resolution of SEC vs CFTC Jurisdiction Dispute


In the past, businesses have faced confusion due to the jurisdiction dispute between the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission) over cryptocurrencies. The two agencies have been engaged in a jurisdictional battle for years, taking numerous enforcement actions against cryptocurrencies, both claiming them to fall within their jurisdiction.


The CLARITY Act designates the CFTC as the primary regulatory agency for the spot market of digital commodities, while the SEC is proposed to maintain jurisdiction over digital assets that constitute securities (those offered as part of investment contracts). The CLARITY Act allows the CFTC exclusive regulatory jurisdiction over "digital commodities" while explicitly excluding investment contracts from the definition of digital commodities.


The role of regulation is divided based on the use of digital assets, whereby the SEC is responsible for investment offerings (e.g., tokens initially offered as part of investment contracts), while the CFTC oversees commodities and trades (e.g., tokens decentralized and primarily used for utility or exchange).



Benefits of Mature Blockchain Systems


Initial blockchain projects are often led by centralized teams, but over time, there are cases where true decentralization is achieved. Ethereum is a representative example; it was initially led by Vitalik Buterin’s team but has now become a decentralized network involving tens of thousands of developers worldwide.


The CLARITY Act presents a definition of "mature blockchain systems," stating that once a blockchain is deemed mature, it will not be controlled by any single individual or group, allowing for lighter regulations. A sufficiently decentralized blockchain is defined as a "mature blockchain system," where that blockchain and its related digital assets are not controlled by "any individuals or individual groups sharing governance."u001C


As specific benefits, once a blockchain system is certified as mature, digital assets relying on that system may be exempt from certain disclosure requirements. They will have fewer reporting requirements, more lenient rules on insider trading, and an easier path to being listed on cryptocurrency exchanges.



3. Anti-CBDC Surveillance State Act (CBDC Surveillance State Prevention Act)


The Anti-CBDC Surveillance State Act is a bill that prohibits the issuance of digital dollars that the U.S. government can track all citizens' transactions without congressional approval. Let’s explain this bill in more detail.


The Chinese digital yuan (DCEP), criticized for being a 'digital surveillance tool' due to
government’s ability to track all transactions in real time, allows real-time or near-real-time financial surveillance of all users' transactions. U.S. Representative Warren Davidson has described it as "the most chilling surveillance tool in history", raising concerns that if the Federal Reserve issues a CBDC, the government could monitor all individuals' spending.


The Anti-CBDC Surveillance State Act prohibits the Federal Reserve from developing or issuing a CBDC without congressional approval, thereby blocking the possibility of the Federal Reserve and the executive branch unilaterally surveilling citizens. The Anti-CBDC Surveillance State Act ensures that the "Federal Reserve cannot design, build, develop, establish, or issue a CBDC absent Congressional authorization", meaning that should Congress, representing the citizens, explicitly approve, the development and issuance of a CBDC can be possible, but it requires "legislation reflecting American values,” ensuring that digital currency policy remains in the hands of the American people.


Project Hangang in Korea is a CBDC for institutions without privacy concerns

The blockchain fintech infrastructure company SOOHO.IO has participated as a technology support partner in Korea's 'Project Han River', which differs from the aforementioned concerns over privacy surveillance. The Bank of Korea's digital currency feasibility test, Project Han River, is designed around an institutional digital currency for financial institutions such as banks, rather than a universal digital currency that anyone can use like cash. It clearly emphasizes that it is not a 'universal digital currency' where the central bank directly interacts with individuals, thus alleviating privacy concerns.



Impact on Korean Blockchain Fintech


What about Korea? Preparation for Global Connectivity is Needed


Korea is already building its own blockchain ecosystem, with the Virtual Asset Protection Act, Travel Rule, major bank stablecoin consortiums, and the Bank of Korea's Project Han River - establishing a strong foundation unique to Korea.


However, to respond to the new regulatory framework in the U.S. and for Korean companies to compete in international markets, it is essential to secure interoperability with the global system:


The blockchain fintech infrastructure company SOOHO.IO already possesses validated technological capabilities through collaborations with major domestic companies. Based on its international cooperation experience with global partners, it supports Korean companies to maintain a competitive advantage even in the new regulatory environment in the U.S. Particularly, SOOHO.IO's Touchstone infrastructure and Purplace PBM platform can meet the requirements of the new U.S. legislation, allowing Korean companies to quickly establish the compliance infrastructure needed for entry into the U.S. market.



Golden Time for Change


The passage of these three U.S. cryptocurrency bills goes beyond simple regulatory changes, presenting a new standard for the global digital economy. Based on past painful experiences such as the Terra Luna Incident, FTX Bankruptcy, and Tether Controversy, these bills are expected to significantly enhance the safety and trustworthiness of stablecoins and blockchain technology.


Korean companies are now presented with the opportunity to challenge the global market on a solid foundation of regulatory clarity. Only those who can quickly adapt to changes and proactively prepare will emerge as winners in the upcoming era of the digital economy.


Now is the golden time for the Korean fintech industry to leap forward as a global leader. Only those who can quickly adapt to changes and proactively prepare will emerge as winners in the upcoming era of the digital economy. SOOHO.IO will support the successful global expansion of Korean companies based on its technological capabilities and experience in responding to these global changes.


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