House Passes Crypto Bills After Nine-Hour Vote

The U.S. House of Representatives faced a tumultuous "Crypto Week" as lawmakers struggled to advance three key cryptocurrency bills. The week was marked by a record-breaking nine-hour procedural vote, the longest in House history, as Republicans finally reached a deal to move forward with the legislation. The bills in question include the CLARITY Act, which focuses on market structure, and the Anti-CBDC Act, which aims to ban the launch of a central bank digital currency (CBDC). The procedural hurdle was cleared after a group of GOP hard-liners dropped their opposition, allowing the House to consider the bills.

The crypto industry had anticipated a landmark moment with these bills, but the process was complicated by a coalition of ultraconservative lawmakers who expressed concerns that the legislation did not go far enough in outlawing a CBDC. These lawmakers feared that a government-issued digital currency could infringe on individual liberties and privacy. The inclusion of the Anti-CBDC Act in the package raised the possibility of Senate approval being stalled, as amendment battles and deadlines loomed.

The chaos in the House was evident as lawmakers debated the merits and implications of each bill. The CLARITY Act, for instance, seeks to provide regulatory clarity for the crypto market, which has long been a point of contention. The Anti-CBDC Act, on the other hand, reflects a growing skepticism among some lawmakers about the potential risks associated with a CBDC. The merger of these two bills, along with a third focusing on market structure, created a complex legislative landscape that required careful navigation.

House Majority Leader Steve Scalise agreed to add a CBDC ban to the must-pass National Defense Authorization Act (NDAA) defense spending bill instead of including it with the crypto bills. This decision was a significant compromise that allowed the procedural vote to pass 217 to 212 late Wednesday. The hardliners' concerns about the GENIUS Act creating a "back door" for the Fed to issue a CBDC were addressed by this move, ensuring that the legislation could proceed without further delays.

The holdup reflects deeper frustration among House conservatives who are tired of always having to accept Senate versions of bills. The House will vote separately on the GENIUS and CLARITY bills and rescissions on Thursday. Representative Bill Huizenga expressed relief that cooler heads prevailed, allowing the process to move forward. Earlier in the week, Republican Representative French Hill warned that the lack of a regulatory framework such as the CLARITY Act could lead to another industry collapse similar to the FTX incident.

House Majority Whip Tom Emmer, a staunch crypto supporter, faced criticism for failing to secure votes. He commented that attaching the Anti-CBDC Surveillance State Act to the NDAA would ensure that unelected bureaucrats are never allowed to trade Americans’ financial privacy for a surveillance tool. Josh Vlasto, spokesperson for Fairshake, emphasized the need for Congress to stop playing politics with crypto and finally pass responsible regulation.

The regulatory storm surrounding these bills underscores the need for clear and comprehensive guidelines to govern the rapidly evolving crypto market. As the House continues to debate and refine these bills, the crypto industry awaits a resolution that could shape its future trajectory. Investors and industry stakeholders are advised to monitor the amendment deadlines closely, as the outcome of these bills could have significant implications for the future of cryptocurrency regulation in the U.S.