Cryptocurrency Bills Stall in House Despite Trump's Push

The U.S. House of Representatives encountered a significant hurdle on July 17 when procedural votes on multiple cryptocurrency-related bills stalled. This delay occurred despite Trump's personal intervention the previous day, highlighting deep-seated divisions within the Republican Party. The bills in question are seen as crucial steps toward integrating digital assets with the traditional financial system, particularly in areas such as stablecoins and central bank digital currencies (CBDCs).

On Wednesday, the House was scheduled to vote on whether to formally debate the bills. This vote, initially planned to last just five minutes, extended over an hour, underscoring the difficulty in coordinating party positions. The previous day's procedural vote had already failed due to a joint effort by some Republican conservatives and Democrats, prompting Trump to intervene.

As a strong advocate for these cryptocurrency bills, Trump met with several Republican lawmakers at the White House this week and publicly endorsed three key bills. However, disagreements persist among Republican conservatives regarding the specifics of how to advance these bills and whether to vote on them as a package. Insiders revealed that negotiations are ongoing between House leadership and hardline factions, with a significant point of contention being a bill that prohibits the Federal Reserve from issuing a CBDC. Some lawmakers fear that this bill could undermine the Fed's monetary policy independence, adding to the controversy.

Despite the overall slowdown, one bill focused on stablecoin regulation has already passed the House and is expected to be signed into law by Trump. This legislation aims to establish a federal framework for regulating stablecoins, potentially providing legal safeguards for major stablecoins like USDC and USDT. Stablecoins, which are pegged to fiat currencies like the U.S. dollar, are widely used in cryptocurrency transactions and have seen rapid growth in usage. Proponents argue that stablecoins could eventually be used for instant payments and even as a new infrastructure for cross-border transactions.

These bills have long been a priority for the cryptocurrency industry. If passed by Congress, they would significantly enhance the industry's compliance and attract more institutional investment, providing a clear development path for U.S. cryptocurrency companies. However, the opposition from multiple Republican conservatives, who joined forces with Democrats to block the bills from advancing to a formal vote, indicates the complex challenges of coordinating within the Republican-controlled House. The future timeline for a comprehensive debate and final vote on these bills remains uncertain, but it is clear that the legislative process will continue to influence market sentiment and the trajectory of digital asset prices as cryptocurrency becomes a focal point in political discussions.