Crypto Bills Delayed After House Vote Failure

The House of Representatives has canceled the scheduled votes on several key cryptocurrency bills for Tuesday, following a procedural failure. The House Press Gallery website confirmed that no further votes are planned for the day. Earlier, lawmakers voted 196 to 223 against advancing three bills that were set for consideration this week. A House aide had initially indicated that another attempt would be made later in the day at 5 p.m. ET, but this did not materialize.

The bills in question included the Guiding and Establishing National Innovation for U.S. Stablecoins ("GENIUS") Act and the Digital Asset Market Clarity ("Clarity") Act, both part of an initiative dubbed "Crypto Week." The GENIUS Act, which had already passed in the Senate, aimed to mandate that stablecoins be fully backed by U.S. dollars or similarly liquid assets, require annual audits for issuers with a market capitalization exceeding $50 billion, and establish guidelines for foreign issuance. This bill was expected to reach the President's desk by the end of the week.

The Clarity Act, on the other hand, proposed a comprehensive regulatory framework for the crypto industry. It would designate roles for the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission in regulating digital assets. Additionally, it required digital asset firms to provide retail financial disclosures and segregate corporate and customer funds. Another bill led by Majority Whip Tom Emmer, R-Minn., sought to prevent the Federal Reserve from issuing a central bank digital currency directly to individuals.

Sources familiar with the discussions had anticipated that the Clarity Act would be passed on Wednesday, with the GENIUS Act slated for Thursday. However, the procedural failure has cast doubt on these timelines. Despite the setback, some, including Cody Carbone, CEO of the Digital Chamber, remain optimistic that the bills will move forward on Wednesday after additional conversations and education. A source familiar with the matter suggested that President Donald Trump, who has been advocating for the GENIUS Act to reach his desk before August, might begin calling people directly, potentially expediting the voting process.

The procedural vote crumbled after several Republicans, including Reps. Marjorie Taylor Greene, Chip Roy, Michael Cloud, and Anna Paulina Luna, voted against it. Rep. Greene expressed concerns over the GENIUS Act's treatment of central bank digital currencies (CBDCs) and criticized Speaker Johnson for not allowing amendments to the bill. She posted on X, stating that Americans do not want a government-controlled CBDC. Carbone countered this assertion, arguing that Emmer's CBDC bill addresses the issue of banning a CBDC. He emphasized that passing the GENIUS Act would allow the private stablecoin market to flourish in the U.S., thereby competing with state-issued digital currencies around the world. Carbone maintained that these bills will ultimately pass.