House Fails to Advance Crypto Bills Amid Republican Disagreement

The U.S. House of Representatives encountered a significant hurdle in advancing crucial cryptocurrency legislation during a procedural vote on Wednesday. Despite initially passing a preliminary procedural motion, the House failed to reach a consensus on moving forward with three key crypto bills to a final vote. This stalemate marks a setback in what was dubbed "Crypto Legislation Week" by Congress.

The day began with a narrow victory for the first procedural motion, which passed by a vote of 217-215. This motion aimed to reconsider the debate rules for advancing the legislation, a process that had been stalled the previous day due to opposition from the House Freedom Caucus. However, the final vote saw 210 votes in favor and 218 against, indicating that Republicans needed at least four more votes to proceed with the legislative process.

The central point of contention was the stablecoin bill. The House was set to vote on the Senate version of the stablecoin bill, known as the GENIUS Act, rather than its own STABLE Act. Members of the Freedom Caucus unanimously voted against it on Tuesday, citing their exclusion from the drafting process of the stablecoin bill. According to reports, President Trump reached an agreement with 11 dissenting members on Tuesday night, promising to merge the anti-CBDC bill with the Clarity Act (market structure bill) in exchange for their support. However, this move raised concerns that some Democrats might withdraw their support.

This vote was a pivotal agenda item for Congress's "Crypto Legislation Week." If the market structure bill had been approved by the House, it would have been sent to the Senate for further consideration. The stablecoin bill, on the other hand, could have been directly sent for the President's signature. Insiders noted that the House leadership did not adequately consult with the Republican caucus before announcing "Crypto Legislation Week," leading to numerous setbacks in the legislative process throughout the week.