Congress is taking significant steps towards regulating the crypto market, with key legislation advancing in both the Senate and House. The Senate Banking Committee has taken a lead role in enacting the Digital Asset Market Clarity Act of 2025, aiming to finalize it before September 30th, 2025. This act aims to clarify regulations for digital assets and their classification within financial markets, potentially impacting stablecoin issuers and crypto platforms. President Trump’s recent signing of the GENIUS Act further strengthens these regulatory efforts by establishing stricter rules for stablecoin issuers, affecting asset classification, listing, reporting, and custody guidelines. The legislation is expected to impact exchanges handling major L1 blockchains and DeFi protocol tokens. Market dynamics are likely to change significantly with these new regulations, as history has shown that regulatory changes often trigger volatility in the crypto market, impacting stablecoin redemptions or price compressions across DeFi tokens like ETH, BTC, and various stablecoins. For a deeper understanding of these evolving legislative actions, refer to the House Bill 3633 overview and the White House report on digital assets efforts.