House floor gridlock spurred by Republican dissent against Trump-supported cryptocurrency legislation
In a significant move, the U.S. House of Representatives has passed the GENIUS Act, a bill aimed at regulating stablecoins, a type of cryptocurrency tied to traditional assets like the U.S. dollar. The bill, which passed with a bipartisan vote, is now heading to President Trump's desk for signature.
However, the journey of the GENIUS Act and two other cryptocurrency bills, the Clarity Act and a bill to prevent the Federal Reserve from creating a central bank digital currency (CBDC), has not been smooth sailing. The progress of these bills was marked by a historic 10-hour voting session, setting a new record for the longest House vote ever.
Some Republican lawmakers, including members of the House Freedom Caucus, initially opposed these bills, raising concerns about market structure and CBDCs. They sought to combine these bills into a single package or merge them with broader market legislation. However, after negotiations with House leadership, these lawmakers agreed to support the GENIUS Act as a standalone measure.
Representative Tim Burchett, for instance, voted against the bill due to questions about its contents and a desire to fix it, while Rep. Bryan Steil discussed potential changes to the cryptocurrency market structure on 'Varney & Co.'. Some House Republicans have expressed concerns about how the Senate rewrote the GENIUS Act and the potential impact on the market structure.
Despite these agreements, opposition remains. Representatives Marjorie Taylor Greene and Andy Harris have voiced concerns about the GENIUS Act not expressly banning a CBDC and not protecting self-custody. Harris even stated that the outcome won't change unless central bank digital currency is killed.
Meanwhile, President Trump has encouraged House Republicans to vote for cryptocurrency bills and claimed that the GENIUS Act will make America the undisputed leader in digital assets. He also stated that digital assets are the future and America is leading by a lot.
The House leaders' plans to vote on three cryptocurrency bills and pass one of their 12 yearly appropriations bills are uncertain due to GOP rebels' issues. A dozen House Republicans joined Democrats to sink a procedural vote that would have allowed lawmakers to debate several cryptocurrency bills. Speaker Mike Johnson has promised to try the vote again on Wednesday after addressing concerns.
As the debate continues, it remains to be seen whether the House will vote on the Senate's landmark cryptocurrency legislation and whether the two other cryptocurrency bills will also pass. The future of cryptocurrency regulation in the U.S. hangs in the balance.
- The GENIUS Act, a bill aimed at regulating stablecoins, has faced challenges in its journey through policy-and-legislation, with some Republican lawmakers initially opposing it due to concerns about market structure and central bank digital currencies (CBDCs).
- Amidst the opposition, President Trump has encouraged House Republicans to support cryptocurrency bills, claiming that the GENIUS Act will make America the leader in digital assets and that digital assets are the future.
- Despite agreements reached in negotiations with House leadership, concerns remain, particularly from Representatives Marjorie Taylor Greene and Andy Harris, who question the lack of explicit CBDC ban in the GENIUS Act and its failure to protect self-custody. Harris even stated that the outcome won't change unless central bank digital currency is killed.
