House Cancels Crypto Bills Votes Amid Political Divisions

On Tuesday, the United States House of Representatives unexpectedly canceled crucial votes on two major cryptocurrency bills, marking a significant setback during what was dubbed “Crypto Week.” This procedural failure highlighted deep political divisions over the regulation of digital assets, leaving the future of the U.S. crypto framework uncertain.

The procedural vote, intended to advance three bills related to digital assets, failed with 196 votes in favor and 223 against. As a result, all scheduled votes for the day were canceled, effectively suspending discussions on the Clarity and GENIUS texts, which had been eagerly awaited by the crypto ecosystem for months.

The GENIUS law aimed to regulate the stablecoin sector by imposing dollar guarantees and annual audits. It had already been approved by the Senate and could have reached the President’s desk before the end of the week. The Clarity text, on the other hand, sought to clarify the roles of the SEC and the CFTC while mandating increased transparency standards for players in the crypto ecosystem.

However, the push to regulate a historically unregulated market has sparked opposition. Some Republican lawmakers, notably Greene, argue that GENIUS does not go far enough in banning central bank digital currencies (CBDCs), citing concerns over increased government surveillance of citizens’ transactions.

Behind Tuesday’s cancellation lies a broader attempt to provide the United States with a clear roadmap on cryptocurrencies. The GENIUS project, in particular, proposed establishing a stablecoin market supported by the private sector, ensuring user security while protecting the country’s monetary sovereignty.

Cody Carbone, CEO of the Digital Chamber, remains optimistic, suggesting that discussions will resume on Wednesday. He argues that GENIUS offers the best response to the specter of CBDCs by making the use of a public digital currency obsolete through the performance of a competitive private market. This view is shared by several industry figures but remains contested within political ranks.

Behind the scenes, the President is said to be pressuring for the project to move forward quickly, aware of the strategic impact this legislation could have on the American digital economy. His direct involvement could tip the scales in the coming days.

The Crypto Week, initially presented as a unique opportunity to evolve the regulatory framework, ultimately faced the reality of partisan tensions. The House was also set to examine a separate bill, sponsored by Tom Emmer, banning the Federal Reserve from issuing a CBDC accessible to individuals—a text that might have addressed the objections of dissenters.

The stakes extend beyond the technical framework, representing an ideological battle between a state guaranteeing digital freedoms via flexible regulations and a more restrictive approach wary of any form of centralized digital currency.

While a potential resumption of votes is expected, hypothetically on Wednesday for Clarity and Thursday for GENIUS, crypto markets remain in anticipation. Beyond internal debates, the United States is playing its credibility against other global powers, already ahead in digital asset regulation.