House Republicans Fail Crypto Week Vote 196-222

House Republicans faced a significant setback in their legislative efforts when they failed to advance a key procedural motion that would have allowed debate on the GENIUS Act and other major crypto bills. The vote, which took place earlier today, Tuesday, resulted in a 196–222 defeat, effectively stalling the highly anticipated legislative push known as “Crypto Week.” This failure dealt a blow to the digital asset industry, which had been eagerly awaiting the passage of these bills.

The GENIUS Act, a landmark bill aimed at establishing the first federal framework for U.S. stablecoins, was one of the key pieces of legislation that the failed vote prevented from moving forward. The collapse of the motion also blocked debate on the annual defense spending bill and a related crypto clarity proposal. With over a dozen Republican holdouts joining Democrats to oppose the rule, House GOP leadership was left scrambling to salvage what was billed as the most ambitious crypto policy package in U.S. history.

Internal fractures within the Republican Party played a crucial role in derailing the legislative plan. Notably, Rep. Marjorie Taylor Greene, one of the GOP defectors, publicly criticized the GENIUS Act for lacking a provision to ban central bank digital currencies (CBDCs). Greene expressed her dissatisfaction on X, stating, “I just voted NO on the Rule for the GENIUS Act because it does not include a ban on Central Bank Digital Currency. Americans do not want a government-controlled Central Bank Digital Currency. Republicans have a duty to ban CBDC.” She also faulted Speaker Mike Johnson for not allowing amendments to be introduced.

Speaker Mike Johnson and House leadership had attempted to bundle the crypto bills with the defense appropriations bill to streamline the legislative push and avoid political infighting. However, this strategy backfired as House conservatives accused Johnson of denying them the chance to amend the legislation, including provisions to bar the Federal Reserve from issuing a CBDC. Some lawmakers, including Rep. Greene, insisted that the bill should reflect President Trump’s January executive order banning CBDCs across federal agencies. Other lawmakers objected to the bundling itself, preferring that each bill, especially the highly sensitive defense budget, be considered on its own.

The failed vote quickly rippled across financial markets, with shares of Circle, the issuer of the USDC stablecoin and one of the bill’s main beneficiaries, falling by nearly 5%. Coinbase and MARA Holdings each dropped by about 2%. Industry advocates, who had spent over $245 million during the 2024 election cycle to back pro-crypto candidates and policies, had framed this week as a major turning point for crypto’s future in Washington. Fairshake, the crypto sector’s leading political action committee, recently disclosed $141 million in cash reserves to continue lobbying efforts and support crypto-friendly candidates ahead of the 2026 midterms.

The GENIUS Act’s passage was seen as a regulatory milestone and a potential economic boon. Treasury Secretary Scott Bessent previously stated that the U.S. stablecoin market could grow to over $2 trillion if the legislation is enacted. David Sacks, the White House’s AI and crypto czar, also said the bill could unlock “trillions of dollars in new demand” for U.S. Treasuries. The House leadership is reportedly planning a second vote on the rule as early as Tuesday evening, although it’s tentative, and so far, no changes to the bill text or bundling approach have yet been confirmed.

However, there is no clear path forward. To satisfy hardliners like Greene, Johnson may be forced to reopen the legislative process and allow amendments, including a formal CBDC ban, that could jeopardize bipartisan Senate support. The future of the GENIUS Act and the broader crypto legislative push remains uncertain as House Republicans grapple with internal divisions and strategic missteps.