U.S. Rep. French Hill said the GENIUS Act cannot achieve its intended impact without the CLARITY Act, arguing that the United States still lacks the market structure needed to support its new stablecoin framework.
Speaking on Fox Business’ Morning with Maria on Friday, Hill said the Senate should move quickly on the CLARITY Act, describing it as the companion legislation needed to complete the country’s digital asset regulatory framework.
Hill says GENIUS Act needs CLARITY Act
Hill compared the relationship between the two bills to owning a phone without a network to operate it. “If you have the GENIUS Act, which authorizes dollar-backed stablecoins, but you don’t have a market structure bill, it’s like being authorized to own a cell phone without an ecosystem to support it,” Hill said.
He argued that while the GENIUS Act establishes rules for payment stablecoins, the CLARITY Act would provide the broader regulatory framework governing digital asset markets, exchanges, disclosures, and oversight.
Hill added that completing the market structure legislation would provide greater certainty for companies building blockchain products in the United States.
Senate faces pressure to advance market structure bill
Hill noted that work on the CLARITY Act has been underway for years and said lawmakers should use the current Senate session to move the legislation before the August recess. He credited former House Financial Services Committee Chairman Patrick McHenry, Rep. Bryan Steil, Senate Banking Committee Chairman Tim Scott, Sen. Cynthia Lummis, and other lawmakers for advancing the proposal.
According to Hill, the Senate is now positioned to finalize legislation that would complement the GENIUS Act and complete the federal digital asset framework.
Hill addresses ethics debate around crypto legislation
Hill also responded to questions about ethics provisions being discussed during Senate negotiations. He said the president and executive branch officials are subject to different constitutional and legal standards than members of Congress, while emphasizing that public officials remain subject to financial disclosure requirements.
Hill argued that a comprehensive market structure framework would also increase transparency across digital assets, including memecoins, by establishing listing standards, disclosure requirements, and regulatory oversight for assets traded on regulated platforms.
CLARITY Act hearing follows Hill’s remarks
Hill’s comments came ahead of a House Financial Services Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence hearing scheduled for July 17 at the Federal Hall National Memorial in New York City.
The hearing, titled “Building the Future of Finance: How the CLARITY Act Unlocks Innovation,” is expected to examine how the legislation would define regulatory jurisdiction for digital assets, establish federal market structure rules, and encourage blockchain innovation and investment in the United States.
Also Read: Crypto Daily Brief: Saylor’s Warning, Pi Network’s App Update, AERO’s Binance Debut
