A bipartisan group of US senators has jointly written to the Treasury Secretary, requesting that the upcoming GENIUS stablecoin act framework explicitly preserve states’ regulatory authority over stablecoin issuers. The senators warned that excessive federal concentration of regulatory power could stifle financial innovation at the state level.

Event Overview

According to CoinDesk, the bipartisan letter was initiated by members of the Senate Banking Committee and received support from both Republican and Democratic lawmakers. The letter emphasizes that states have a long history and extensive experience in financial services regulation, and the federal government should not completely replace state-level oversight in the stablecoin domain.

The GENIUS Act aims to establish a federal regulatory framework for dollar-backed stablecoins, providing legal certainty for the crypto industry. However, provisions regarding federal preemption have raised concerns among state regulators, who argue this could create a “regulatory vacuum.”

Editor: GoodInfo Global News Team

Editor: GoodInfo Global News Team

JPMorgan has issued a warning that the legislative window for the US crypto market structure bill (Clarity Act) is narrowing. The bill still faces multiple legislative hurdles, with stablecoin yield distribution emerging as a key point of contention that could affect its final passage.

Event Details

According to CoinDesk, JPMorgan said in its latest market analysis report that the Clarity Act faces growing time pressure in Congress. The bill aims to establish a clear regulatory framework for the US crypto asset market, but several critical disagreements remain unresolved.

The report specifically highlighted that the stablecoin yield issue has become a major obstacle in the legislative process. Different political factions hold fundamentally divergent views on whether stablecoin issuers should be allowed to provide yields to holders. Proponents argue that allowing yield distribution would help attract institutional capital into the crypto market, while opponents worry this could trigger systemic financial risks.

Additionally, the bill faces disputes over regulatory jurisdiction — the power struggle between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) remains unresolved.

Perspective and Analysis

The legislative process of the crypto market structure bill actually reflects deep structural contradictions in the US financial regulatory system when facing emerging digital assets. The traditional financial regulatory framework is built on a classification system accumulated over decades — securities, commodities, and currencies each have their own regulators. However, the characteristics of crypto assets often cross these traditional classification boundaries, making regulatory jurisdiction a complex issue.

From an industry development perspective, a clear regulatory framework is a key prerequisite for the crypto market to go mainstream. Currently, the US crypto industry operates in an environment lacking clear regulations, leaving companies facing compliance uncertainty and institutional investors adopting a wait-and-see approach due to regulatory risks. JPMorgan’s attention to crypto regulation, as a traditional financial giant, is itself an important signal — indicating that mainstream financial institutions have already incorporated crypto assets into their core business considerations.

The stablecoin yield controversy touches on deeper philosophical divides in finance. Allowing stablecoins to generate yields means positioning them as investment vehicles rather than mere payment instruments. This shift in positioning could reshape the entire crypto financial ecosystem, but it could also introduce new systemic risks — particularly in extreme market conditions, where yield-driven redemption rushes could trigger liquidity crises.

Multiple Perspectives

Industry supporters argue that a clear regulatory framework would unlock trillions of dollars in institutional capital flowing into the crypto market. The Crypto Council stated: "The US needs to show leadership in crypto regulation, otherwise innovation will flow to jurisdictions with clearer regulations."

Regulatory cautious camp emphasizes that hasty legislation without adequate consumer protection mechanisms could have serious consequences. A former SEC official warned: "The stablecoin yield issue requires deeper risk analysis — we cannot sacrifice financial stability for legislative speed."

International perspective: The EU has already established a relatively comprehensive crypto asset regulatory framework through MiCA, and the UK is also actively advancing related legislation. Analysts point out that if the US continues to delay, it may lose its leading position in the global crypto regulatory competition.

The U.S. Commodity Futures Trading Commission (CFTC) has officially approved Kalshi exchange to list crypto asset perpetual futures contracts, marking the first time U.S. regulators have provided a pathway for regulated firms to participate in the crypto perpetual derivatives market.

What Are Perpetual Futures

Perpetual futures are futures contracts without an expiration date, allowing traders to hold positions indefinitely through a funding rate mechanism. This market has long been one of the largest segments of global crypto trading, but primarily operated on offshore exchanges outside U.S. regulatory oversight.

The CFTC Chairman stated: “For years, one of the most significant crypto asset markets has existed entirely outside the United States. Today, that changes.” This marks a fundamental shift in the U.S. regulatory stance on crypto derivatives.

Market Impact

As the first approved U.S. regulated platform, Kalshi will offer crypto perpetual futures trading to qualified institutions. This approval means:

• Clear regulatory framework: The CFTC has established concrete rules for regulated U.S. firms to participate in crypto perpetuals
• Institutional capital channels open: Traditional financial institutions can now trade crypto perpetual derivatives within a compliance framework
• Liquidity boost: Expected to attract more institutional liquidity providers to the market

Industry Context

The crypto perpetual futures market has grown to hundreds of billions of dollars globally, serving as a core product in crypto trading. Previously, U.S. investors primarily accessed these products through offshore platforms, facing compliance and counterparty risks.

This approval aligns with the CFTC’s recent push for the Clarity Act, signaling that the U.S. is systematically building a regulatory framework for crypto assets. Meanwhile, market makers like Wintermute have also announced expansion into prediction markets, further confirming institutional optimism about crypto derivatives.

Source: CoinDesk, The Block

Leaders of the House Agriculture Committee have urged President Trump to swiftly appoint commissioners to the Commodity Futures Trading Commission (CFTC). Chairman Michael Selig has been the agency’s sole commissioner since December, with four seats sitting empty.

CLARITY Act Progress

The CLARITY Act is advancing through the Senate, aiming to clarify the regulatory framework for cryptocurrency and delineate jurisdiction between the SEC and CFTC. Passage would provide the crypto industry with a clearer compliance pathway.

Industry Impact

Long vacancies on the CFTC commission have slowed regulatory decision-making. As the crypto market continues to grow, the industry urgently needs a fully staffed commission to drive key policy decisions. New appointments will be a critical variable shaping US crypto regulation.

Source: The Block

Polish lawmakers are debating cryptocurrency legislation while the PiS party has submitted a separate proposal to ban crypto, according to TheBlock. The development reflects divergent regulatory approaches across European nations.

As an international financial center, Bermuda is working to position itself as a crypto-friendly jurisdiction. The USDC airdrop aims to let local residents experience the convenience of stablecoin payments.

On the regulatory front, Bermuda has established a relatively comprehensive digital asset regulatory framework, providing clear compliance pathways for crypto businesses. This move aligns with the competitive landscape of multiple jurisdictions vying for crypto company establishment.

“Shark Tank” investor Kevin O’Leary said Wall Street’s current tokenization boom lacks a clear crypto regulatory framework, and institutional investors still view it as too risky. He noted that widespread institutional adoption cannot happen until the US establishes clear cryptocurrency compliance standards.

TD Cowen analysts warn disagreements over stablecoin yield provisions could delay passage of comprehensive US crypto legislation.