Trump's Intervention Rescues Crypto Bills After Republican Rebellion

Donald Trump recently intervened to prevent a significant political setback by rallying dissenting Republicans. His direct involvement in the Oval Office helped to reinstate the adoption of key crypto bills, although internal tensions over central bank digital currencies (CBDCs) suggest that the battle is far from over.

Trump met with 11 out of the 12 Republican representatives who had opposed the crypto bills and convinced them to vote in favor. The rebellion centered on the absence of an explicit ban on CBDCs in the GENIUS Act. Thirteen Republican legislators had withdrawn their support on Tuesday, leading to the cancellation of the votes.

Trump's intervention was crucial as it revealed the magnitude of the crisis. Rarely do Republican elected officials openly defy their president. The uprising was led by prominent figures such as Steve Scalise, House Majority Leader, Marjorie Taylor Greene, Andy Biggs, and Tim Burchett. In total, 13 Republican legislators voted against the examination of the bills, creating a major internal crisis and suspending the "Crypto Week" orchestrated by the Republicans. The goal was to pass ambitious crypto legislation before the Congress summer recess.

The main point of contention was the regulation of central bank digital currencies (CBDCs). The dissenting representatives demanded that the GENIUS Act, which regulates stablecoins, include an explicit ban on CBDCs. Their fear was the establishment of a total state surveillance system over the transactions of American citizens. Andy Biggs was particularly vocal, stating that the Senate’s GENIUS Act creates a framework for a layered Central Bank Digital Currency (CBDC) and does not guarantee self-custody. Marjorie Taylor Greene criticized the absence of possible amendments, stating that she voted against the Rule for the GENIUS Act because it does not include a ban on Central Bank Digital Currency and because Speaker Johnson did not allow amendments to the GENIUS Act.

The texts concerned are structural for the future of the American crypto industry. The GENIUS Act imposes a strict framework on stablecoins, including 100% dollar collateral, annual audits, and oversight of foreign issuers. The CLARITY Act aims to allocate roles between the SEC and the CFTC, providing the long-awaited legal certainty. A third bill, supported by Tom Emmer, intends to ban any CBDC issued directly to the public by the Fed. Some Republicans demanded that these three projects be merged into a single legislative package, while others criticized the adoption as being too rushed overall.

Trump’s intervention could well unstick a situation that was dangerously bogged down. The Speaker of the House, Mike Johnson, expressed his gratitude, thanking President Trump for his commitment to help pass the GENIUS Act and for his renewed commitment to help advance cryptocurrency legislation in the coming days. The House is meeting to debate these crucial bills, holding major strategic importance for the United States. While other regions advance on the regulation of digital assets, America cannot afford to fall behind. The adoption of these laws would place the United States in the position of global leader in crypto regulation. The GENIUS Act, already passed by the Senate in June, could reach Trump’s desk before the end of the week. This bill requires dollar guarantees and annual audits for stablecoin issuers. CLARITY promises to clarify the respective roles of the SEC and the CFTC, finally providing the legal certainty long awaited by the industry. The outcome of this legislative battle will determine if Trump’s America will seize the historic opportunity to become the global leader in crypto regulation.