House Republicans Reattempt Crypto Bills After Tuesday's Failure

The US House of Representatives is planning to re-attempt the passage of three cryptocurrency-related bills on Wednesday, following a failed vote on Tuesday. The delay was due to multiple Republican lawmakers withdrawing their support, as they sought to include a ban on central bank digital currencies (CBDCs).

House Speaker Mike Johnson expressed his intention to push for a procedural vote on the bills on Wednesday, emphasizing the importance of these crypto bills to the White House, the Senate, and the House. The bills in question are the GENIUS Act, which regulates stablecoins, the Anti-CBDC Surveillance Act, which aims to ban CBDCs, and the CLARITY Act, a comprehensive bill addressing crypto market structure.

Some Republicans advocated for amending the GENIUS Act or combining it with the other two bills. However, Speaker Johnson insisted on handling the bills sequentially, citing concerns that the Senate would not pass them if they were bundled together. This move is part of the Republican-led "Crypto Week" initiative, aimed at enacting crypto laws before Congress' August recess. Meanwhile, Democrats have declared an "anti-crypto corruption week" to oppose these bills.

House Majority Leader Steve Scalise, along with 12 other Republican lawmakers, voted against considering the bills on Tuesday. The dissenting lawmakers included Andrew Clyde, Tim Burchett, Andy Biggs, Eli Crane, Michael Cloud, Marjorie Taylor Greene, Andy Harris, Anna Paulina Luna, Scott Perry, Victoria Spartz, Chip Roy, and Keith Self. Despite the setback, another vote to advance the bills was anticipated, but the House adjourned without further action.

Representatives Biggs, Burchett, Green, Luna, and Spartz clarified their stance on social media, stating that they were not opposed to the crypto bills but insisted on including a specific ban on CBDCs in the GENIUS Act. Marjorie Taylor Greene highlighted her vote against the GENIUS Act due to the absence of a CBDC ban and the lack of an open amendment process. Andy Biggs expressed concerns about the GENIUS Act potentially creating a framework for a layered CBDC and not guaranteeing self-custody, calling for amendments to address these issues.

US President Donald Trump had previously issued an executive order in January, which included a ban on the Federal Reserve creating a CBDC. Speaker Johnson is reportedly in discussions with the Republican holdouts to advance the legislation, but there is a disagreement over whether the three bills should be combined into one package. Johnson emphasized the need to work with the White House and Senate partners to move forward with all three bills.

The House is scheduled to reconvene on Wednesday for a morning hour debate and other legislative business. Caitlin Long, founder and CEO of Custodia Bank, reassured that the failure of the legislation on the first attempt is not a cause for concern, as the GENIUS Act also faced initial setbacks in the Senate. The GENIUS Act ultimately passed the Senate in June with bipartisan support, despite initial Democratic opposition to Trump's connections to the crypto industry. Eleanor Terrett, host of the Crypto in America podcast, noted that the GENIUS Act already prohibits the Fed from creating a retail CBDC, as it does not expand the Fed's authority to offer services directly to the public.