This week, a major push by House Republicans to advance new cryptocurrency laws—dubbed "crypto week"—has unexpectedly faltered, exposing divisions within the party and stalling progress on three high-profile bills. The United States House of Representatives had planned to bring forward a trio of bills regulating stablecoins, redefining crypto market structure, and prohibiting a central bank digital currency (CBDC), but the effort came to a halt when 13 Republican members joined all Democrats to block a critical procedural vote required to move the legislation to the floor.
The procedural defeat led House leadership to cancel all remaining votes for the day, leaving the fate of the bills in doubt. Ongoing negotiations between Republican factions and Democrats are reportedly underway as GOP leaders, including Speaker Mike Johnson, seek a path forward. Johnson has been a vocal proponent of the legislative package, viewing it as crucial to establishing the United States as a global leader in cryptocurrency innovation, a position shared by President Donald Trump.
The three stalled bills center around:
- Stablecoin Regulation Bill: Proposing oversight and stability requirements for stablecoins, digital tokens pegged to a reserve asset such as the US dollar.
- Market Structure Framework: Designing rules for determining whether different crypto tokens qualify as securities or commodities, thus clarifying regulatory jurisdictions.
- CBDC Prohibition: Preventing the Federal Reserve from launching a central bank digital currency, amid privacy and government surveillance concerns.
The main sticking point in the House concerns whether to pass the bills as a collective package or individually. Proponents of bundling argue the bills would gain more traction by moving together, with greater negotiating leverage in the Senate. However, Speaker Johnson and President Trump have both advocated for individual votes, particularly to expedite the stablecoin measure, which has already advanced through the Senate. Some members warn that combining all three bills could require sending them back to the committee process, potentially delaying any enactment until after the 2024 elections.
Notably, the legislation has ignited concerns about potential conflicts of interest. The stablecoin bill contains a provision barring members of Congress and their families from profiting from stablecoin projects. However, this restriction does not apply to the president or his family. President Trump and Speaker Johnson have both faced scrutiny due to reported ties to World Liberty Financial, a crypto initiative that recently launched its own stablecoin, “USD1.” Johnson is said to hold a considerable stake in the project, raising questions as the legislative process moves forward. (AP News)
The crypto industry—having spent significant sums boosting industry-friendly candidates in the 2024 midterm primaries—has reacted sharply to the stalemate. According to reports, industry-backed super PACs now control more than $80 million for campaign efforts this year, with expectations that the ultimate fate of these bills could influence both the current session and the 2026 midterm cycle. (AP News) On social media, advocates have urged lawmakers to “stop playing politics” and enact clear crypto regulations, emphasizing the need for consumer protections and market legitimacy.
One policy executive at a leading crypto firm, responding to the failed vote, expressed disappointment but noted, “with every few steps forward there is inevitably a step back, but in these moments you see who is really trying to get legislation done and who isn’t.”
Market reaction was swift, with shares of major crypto-related companies such as Circle Internet and Coinbase declining after the House defeat (Reuters). The impasse also drew attention to similar legislative attempts in the past; for instance, a notable crypto regulation took the Senate nearly six weeks to pass earlier this year, and further delays are expected if the current bills face renewed committee review.
House leadership has indicated intentions to revisit the vote soon, with Speaker Johnson continuing discussions to find a compromise with his caucus and across the aisle. The outcome of these negotiations will likely determine whether the U.S. can move forward in defining a modern regulatory landscape for the rapidly growing digital asset sector.
Further details can be found via AP News, Axios, Axios on the GENIUS Act, and Reuters.