What was Crypto Week?

In July 2025, the U.S. House of Representatives scheduled a series of debates and votes on three major digital asset bills: the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance State Act. Known as Crypto Week, the initiative represented a significant moment for U.S. digital asset regulation.

The process encountered a setback on July 15, when a procedural vote failed 196–223. President Trump met with opposing lawmakers that evening, and a further vote was subsequently scheduled.

The implications extend beyond the United States. Given the role of U.S. financial markets and the dollar, the proposed frameworks could influence how blockchain and fintech businesses in Korea approach international expansion.

This article examines the three bills and their potential implications.

The three bills at a glance

1. GENIUS Act (Stablecoin Regulation Act)

The GENIUS Act establishes a federal framework for payment stablecoins. Its key provisions address reserve backing, disclosures, custody, and supervision.

Reserve backing: lessons from TerraUSD

The collapse of TerraUSD in 2022 demonstrated the risks of maintaining a stablecoin’s value through an algorithm without conventional reserves. Its rapid depeg caused extensive losses across the market.

The GENIUS Act requires permitted payment stablecoins to be backed by eligible liquid reserves on at least a one-to-one basis. This is intended to support redemption and reduce reliance on speculative collateral.

Reserve disclosures and transparency

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.

Issuers must publish regular reserve information and meet applicable assurance requirements, giving users and supervisors greater visibility into the assets backing tokens.

Protecting reserves from misuse

FTX’s November 2022 collapse exposed the misuse of customer assets by FTX and Alameda Research. In August 2024, a court ordered the two companies to pay USD 12.7 billion in monetary relief. The case illustrates why segregation and controls over customer funds matter.

The GENIUS Act restricts the reuse of reserves, subject to specified exceptions, with the aim of protecting assets held to meet stablecoin redemptions.

Federal and state supervision

The framework provides both federal and qualifying state supervisory pathways, with requirements that depend on the issuer and the scale of its activity.

Large issuers can affect markets beyond cryptocurrency, making their reserve management and redemption capacity relevant to broader financial stability. Smaller issuers may have more limited reach but still require appropriate oversight.

USD 10 billion in outstanding issuance is an important threshold in determining the applicable supervisory pathway, with specific transition and exemption provisions.

• Larger issuers: Federal oversight generally applies, subject to the framework’s transition and exemption rules.

• Smaller issuers: A qualifying state framework may be available, balancing oversight with room for new entrants.

2. CLARITY Act: defining digital asset market oversight

The CLARITY Act seeks to clarify the treatment of digital commodities and securities, reducing uncertainty over the regulatory responsibilities of the SEC and CFTC.

Clarifying the roles of the SEC and CFTC

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 bill would give the CFTC primary oversight of digital commodity spot markets while preserving the SEC’s authority over securities and investment contracts.

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).

The concept of a mature blockchain system

A blockchain can begin under the direction of a small team and become more decentralized over time. The bill seeks to account for that evolution in how related assets are regulated.

Its concept of a mature blockchain system focuses on whether a network is controlled by a single person or coordinated group. Meeting the relevant criteria can change the obligations applicable to assets associated with that system.

Certification may provide relief from certain disclosure requirements and change the conditions for market participation. The precise obligations depend on the bill’s provisions and implementation.

3. Anti-CBDC Surveillance State Act

This bill addresses concerns about a Federal Reserve-issued digital currency and the government’s potential access to individuals’ transaction information.

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 uses a different architecture

SOOHO.IO has participated as a technology partner in Korea’s Project Hangang. The Bank of Korea’s pilot centers on institutional digital currency for banks and related deposit-token services, rather than a general-purpose CBDC issued directly to individuals. That distinction matters when considering the privacy and operating model.

Implications for Korean blockchain and fintech businesses

Preparing for international connectivity

Korea is developing its own framework through virtual asset regulation, the Travel Rule, bank-led stablecoin initiatives, and Project Hangang.

Businesses pursuing international markets will also need to understand how their systems and operating models interact with overseas requirements.

SOOHO.IO brings experience from Korean enterprise projects and global partnerships. Its Touchstone infrastructure and Purplace PBM platform can support the technical foundations of compliance-oriented services, while the requirements for any U.S. market entry must be assessed for the specific issuer, product, and operating model.

An opportunity to prepare

The three bills reflect a broader effort to establish clearer rules for digital assets, informed by failures such as TerraUSD and FTX and concerns about reserve transparency.

For Korean businesses, greater clarity can create opportunities—but taking advantage of them requires early technical and operational preparation.

SOOHO.IO supports that preparation through its technology and international project experience, helping organizations evaluate how blockchain infrastructure can fit their plans for growth.

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