Crypto Bills Face Setback as House Vote Fails 196-223

President Donald Trump has declared July 15 as "Crypto Week," marking a significant push for digital asset legislation in the United States. The House of Representatives is scheduled to vote on several key crypto bills, including the GENIUS Act, which aims to establish a regulatory framework for stablecoins. This initiative is part of a broader effort to position the U.S. as a leader in cryptocurrency innovation and outpace global competitors.

Trump's declaration underscores his "America First" economic vision, emphasizing the need to reclaim leadership in emerging financial technologies. He called on Republican lawmakers to unify behind the GENIUS Act, highlighting its potential to solidify America’s dominance in the rapidly evolving crypto space. The legislation is expected to face its first vote in the House later today, with further legislative activity anticipated in the Senate.

However, the procedural vote on these crypto bills faced a significant setback on July 14. Despite initial enthusiasm, the vote failed to advance, with 196 lawmakers in favor and 223 against. The failure was largely attributed to a group of House Freedom Caucus members who voted against the bills due to concerns that they did not adequately address issues surrounding CBDCs and other related matters. This vote was seen as a crucial moment for pro-crypto advocates, as it included key legislation such as the GENIUS Act and the CLARITY Act.

The failed procedural vote comes shortly after President Trump called on Republican lawmakers to pass the digital asset bills. In a post on Truth Social, Trump emphasized the importance of these bills in "Making America Great Again" and expressed his commitment to working with both the Senate and the House to pass more legislation. Despite Trump's endorsement, the bills remain stalled, and it is unclear how lawmakers will proceed.

Democratic lawmakers have also weighed in on the issue, with Ranking Member of the House Financial Services Committee Maxine Waters and Congressman Stephen Lynch criticizing the Republican-led efforts. They argued that the bills lack necessary consumer protections and national security measures, and accused Republicans of attempting to pass "dangerous pieces of crypto legislation" that could enrich Trump and his associates at the expense of investors. This political divide further complicates the path forward for digital asset legislation in the United States.