U.S. House Passes Crypto Bills as Senate Stalls Over Political Divisions

The U.S. House of Representatives passed three cryptocurrency-related bills last week, including the GENIUS Act—which regulates payment stablecoins—but the fate of the broader crypto and central bank digital currency (CBDC) legislation remains uncertain as Congress prepares for an August recess. The GENIUS Act was signed into law by President Donald Trump following its passage, while the Digital Asset Market Clarity (CLARITY) Act and the Anti-CBDC Surveillance State Act await Senate consideration. Political divisions, particularly within the Republican Party, have complicated the legislative process, with some lawmakers opposing provisions they believe could enable a U.S. CBDC [1].

The House’s action marked the culmination of Republicans’ “crypto week” initiative, aimed at establishing regulatory clarity for the digital asset industry. While the GENIUS Act received broad support, the CLARITY Act and anti-CBDC bill faced internal resistance. Only 12 Republicans joined all but 100 Democrats in opposing the GENIUS Act, but challenges persisted for the remaining bills. The anti-CBDC legislation, which prohibits the Federal Reserve from issuing a digital dollar, passed with just two Democratic co-sponsors, raising concerns about its viability in the Senate [2].

Senate Republicans are expected to prioritize crypto market structure reforms, with a draft bill titled the Responsible Financial Innovation Act released to build on the House’s CLARITY Act. The Senate’s version seeks to define regulatory frameworks for the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), clarifying which tokens qualify as securities. However, partisan tensions and Trump-aligned lawmakers’ resistance could delay progress. Wyoming Senator Cynthia Lummis, chair of the digital assets subcommittee, has proposed extending the Senate session through August to address these measures, aligning with the president’s agenda [1].

The CFTC’s staffing crisis further complicates oversight. Only two commissioners currently serve the agency, with Acting Chair Caroline Pham and Kristin Johnson expected to leave by 2026 if Brian Quintenz is confirmed as chair. A procedural delay in Quintenz’s Senate nomination, due to a Republican senator’s absence, has stalled CFTC leadership transitions. This uncertainty could hinder enforcement and regulatory coherence as crypto and CBDC bills advance [1].

With Congress entering recess, legislative momentum has halted. Lawmakers will reconvene in September, pushing back potential votes on the bills. The pause raises questions about the U.S.’s ability to keep pace with global digital currency developments, as other nations advance CBDC initiatives and crypto markets remain volatile. Analysts note that unresolved political divisions may delay meaningful regulatory frameworks, risking the U.S. falling behind in shaping the future of digital finance [3].

Source:

[1] Cointelegraph, [https://cointelegraph.com/news/crypto-week-bills-congress-recess]

[2] AOL.com, [https://www.aol.com/12-republicans-derailed-house-crypto-015640367.html]

[3] Facebook, [https://www.facebook.com/groups/oopswowfun/posts/2395288954200198/]