Crypto Bills Fail House Vote 196-223

On Tuesday, a pivotal procedural vote in the U.S. House of Representatives failed to advance a package of cryptocurrency-related bills backed by Donald Trump. The vote, which ended in a 196-223 defeat, marked a significant setback for the crypto industry during what was billed as “Crypto Week.”

Thirteen House Republicans joined Democrats in blocking the rule needed to begin debate on the bills. The legislative package included the GENIUS Act, aimed at regulating stablecoins, the CLARITY Act, which sought to establish broader market rules, and the Anti-CBDC Surveillance State Act. Speaker Mike Johnson and GOP leadership are now considering changes to regain party support.

Rep. Marjorie Taylor Greene, one of the Republicans who voted against the rule, cited the absence of a Central Bank Digital Currency (CBDC) ban in the GENIUS Act as her reason for opposition. Greene emphasized the need for such a provision, aligning with Trump’s January 23 executive order. Other conservatives expressed frustration over the limited ability to propose amendments ahead of the floor vote.

GOP leadership had initially hoped to pass the bills swiftly following the Senate’s recent approval of the GENIUS Act. However, members of the House Freedom Caucus and other conservatives pushed back, demanding that the bills be merged into a single package. Speaker Johnson acknowledged that some members “insist it needs to be all in one package.”

The House is expected to reattempt the vote after further internal negotiations. Meanwhile, Senate committees are also moving toward consideration of a second major crypto framework bill. Senator Cynthia Lummis indicated that a draft of that bill could be released this week, signaling parallel efforts in the upper chamber.

The failure of the vote highlights the internal divisions within the Republican Party and the challenges facing the crypto industry in its quest for regulatory recognition and acceptance. The outcome underscores the need for a more comprehensive and coordinated approach to crypto regulation, as the industry continues to call for clearer regulatory guidelines.