"Crypto Week" Suddenly Cools: House Unexpectedly Stalls, Trump's Appeal Fails
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"Crypto Week" Suddenly Cools: House Unexpectedly Stalls, Trump's Appeal Fails
When technological innovation meets political maneuvering, the path to cryptocurrency "compliance" is注定 not to be smooth.
Navigating Web3 tides with focused insightsBy: BitpushNews
Tuesday dealt a setback to what was supposed to be crypto industry's "golden moment" in Washington — Crypto Week — as three cryptocurrency regulatory bills championed by Trump unexpectedly failed in a procedural vote.
The final vote tally stood at 196 in favor and 223 opposed. Thirteen Republican House members joined Democrats in voting against the motion, blocking a procedural measure that would have allowed debate and advancement of the bills.
This means that unless the House again approves relevant rules of procedure, these bills carrying high hopes for the industry will not proceed to substantive debate.
Crypto Week Vision: Trump Takes Personal Command
Earlier this week, sentiment in Washington’s crypto sector was optimistic, with widespread expectations that the bills would pass smoothly.
Trump himself rallied support for "Crypto Week" on his Truth Social platform, portraying it as a critical step toward making America an "undisputed number one leader" in digital assets. On social media, he urged all Republican House members to vote yes, insisting that the GENIUS Act would put the United States "light years ahead of China, Europe, and every other country — who are endlessly chasing but simply cannot catch up."
The stalled legislative package includes three pivotal bills for the industry:
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GENIUS Act: This stablecoin regulation bill passed the Senate last month with partial Democratic support. It aims to establish a clear regulatory framework for stablecoins and is seen as a key enabler for broader institutional adoption.
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CLARITY Act: Designed to clarify classification rules for digital assets, this bill seeks to define which assets fall under the Securities and Exchange Commission (SEC) as securities, and which belong under the Commodity Futures Trading Commission (CFTC) as commodities, ending the long-standing "regulatory gray zone" plaguing the industry.
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CBDC Prohibition Act: This proposal aims to ban the Federal Reserve from creating a central bank digital currency (CBDC), reflecting concerns among some lawmakers about government control over digital money.
These bills were viewed as foundational to establishing a comprehensive and predictable regulatory framework for digital assets in the U.S. Their passage could have brought much-needed clarity to the market, attracting more capital and innovation.
Republican Dissent Emerges
The most striking aspect of Tuesday’s vote was the defection of 13 Republican House members. According to The Hill, several prominent Republicans, including Marjorie Taylor Greene, Chip Roy, Michael Cloud, and Anna Paulina Luna, voted against the motion.
Marjorie Taylor Greene of Georgia publicly explained her position on social media.
She stated that the GENIUS Act did not include a ban on central bank digital currencies (CBDCs), and Speaker Johnson refused to allow amendments on the matter. Greene emphasized that Trump’s January 23 executive order included a CBDC ban, so Congress must also incorporate such a provision into the GENIUS Act. She argued, “Americans do not need a government-controlled central bank digital currency.”
House Speaker Johnson now finds himself in a difficult position. After the vote failure, he said Republicans are “still in conversations, answering questions,” attempting to calm tensions and win over conservative holdouts.
Yet he acknowledged that bundling all three bills — particularly combining the Senate-passed stablecoin bill with the hardliners’ demanded CBDC prohibition — into one “mega-package” is unworkable. A senior Republican lawmaker bluntly stated, “Packaging them together will only kill these bills in the Senate.” These remarks highlight the strategic dilemma facing Republican leadership as they try to balance internal factional demands with legislative feasibility.
Next Vote Uncertain: Compromise or Deadlock?
Following the news of the failed vote, crypto-related stocks dropped sharply: Circle, the stablecoin issuer, fell over 7%, Coinbase declined more than 4%, and digital asset firm MARA Holdings dropped 2%.
House Speaker Johnson has announced plans to restart the procedural vote on the crypto legislation Wednesday local time. As he left the Capitol, the Louisiana Republican told reporters that ongoing discussions continue within the party to “address concerns,” and stressed that “these crypto bills are a shared priority of the White House, the Senate, and the House.” Fox News reported that Trump himself is very “angry” about the outcome and is actively communicating with relevant lawmakers.
Despite this, some industry analysts remain optimistic about the bills' prospects. Jaret Seiberg, policy analyst at TD Cowen, wrote in a client note: “We likely will see another House rules vote tomorrow (Wednesday). If not tomorrow, it may be delayed until next week.” Seiberg added that he still expects the House to pass the GENIUS Act, primarily because “Trump is pushing hard for it.” He believes that even if members of the House Freedom Caucus oppose accepting the Senate version, they may ultimately yield under presidential pressure.
Cody Carbone, CEO of Digital Chamber, also expressed confidence in the eventual passage of the legislation. On social media, he argued that the best way to address CBDC prohibition is precisely through the GENIUS Act: “If lawmakers want to ban CBDCs and compete with state-issued digital currencies abroad, the way to do it is by passing the GENIUS Act and allowing the private stablecoin market to thrive in the United States.”
This latest twist underscores a reality: even agendas strongly backed by the president can falter due to delicate intra-party power dynamics in Washington. When technological innovation meets political maneuvering, the path to crypto regulation will inevitably be rocky.
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