tl;dr
Several cryptocurrency regulation bills supported by former President Donald Trump failed to pass a key procedural vote in the House of Representatives, with a vote of 196 in favor and 223 against, including thirteen Republicans joining Democrats to block the legislation. This vote halted progress o...
Several cryptocurrency regulation bills backed by President Donald Trump failed to clear a key procedural hurdle Tuesday in the House of Representatives, delivering a significant setback to the crypto industry. The bills cannot advance until the House approves rules of debate for the legislation. The vote was 196 in favor and 223 against, with thirteen Republicans joining Democrats to block the legislation’s progress.
The unexpected result came during what is being called “Crypto Week,” marking a rare moment of House Republicans defying Trump’s direction. Following the vote, House Republican leadership abruptly decided not to hold another vote on the same day, leaving the future of the bills uncertain. It remains unclear whether they will attempt a second vote on the identical rules or revise the package to appease dissenting GOP members.
Crypto-linked stocks took a hit after the vote. Shares of stablecoin company Circle dropped more than 7%, Coinbase fell over 4%, and digital asset firm MARA Holdings dipped more than 2%. Among the three bills stalled is the GENIUS Act, which passed the Senate last month with some Democratic support and aims to regulate stablecoins.
Another stalled bill, the CLARITY Act, seeks to set clear guidelines on whether digital assets are classified as securities under the Securities and Exchange Commission or as commodities under the Commodity Futures Trading Commission. The third proposal aims to prevent the Federal Reserve from issuing a central bank digital currency, adding another layer of complexity to the regulatory debate.
This legislative gridlock highlights the ongoing challenges Congress faces in crafting effective cryptocurrency regulation amid differing political priorities and industry pressures.