House Rejects Cryptocurrency Bill in 43% Vote Against

House Rejects Cryptocurrency Bill Amid Intensifying Political Divisions

The U.S. House of Representatives has voted against advancing a significant package of cryptocurrency legislation, highlighting deepening partisan divisions and extending uncertainty for the digital asset sector. On July 14, the House rejected a procedural motion by a margin of 196 to 223, falling short of the simple majority needed to move forward with the proposed bills, which included the GENIUS Act and the CLARITY Act.

Political Opposition and Legislative Stalemate

The defeat was largely driven by opposition from conservative members of the House Freedom Caucus, who contended that the bills inadequately addressed concerns surrounding Central Bank Digital Currencies (CBDCs) and other regulatory gaps. Their resistance, supported by thirteen additional Republican lawmakers, proved decisive in halting the legislation’s progress. This setback occurs amid heightened congressional scrutiny of digital asset regulation.

The GENIUS Act, a central component of the package, aimed to establish a regulatory framework for stablecoins—digital tokens pegged to traditional currencies such as the U.S. dollar. Advocates argue that such legislation is essential to preserving America’s leadership in the rapidly evolving cryptocurrency industry. However, the House vote also reflects broader partisan tensions. Democratic leaders have expressed reluctance to endorse Republican-led crypto bills, criticizing both the House’s market structure proposals and a Senate stablecoin measure.

Meanwhile, the Senate Banking Committee Republicans have postponed consideration of cryptocurrency market structure legislation until after the August recess, resulting in a legislative impasse between the two chambers. The Biden administration, facing pressure from former President Trump’s team, has urged the House to swiftly adopt a Senate-passed stablecoin bill. Despite this, resistance within the House has stalled momentum, underscoring the growing divide over digital asset policy. Congresswoman Marjorie Taylor Greene cited the President’s executive order as justification for her opposition, emphasizing concerns about executive overreach and regulatory clarity.

Implications for the Crypto Market and Industry

The legislative deadlock carries immediate consequences for the cryptocurrency market. The failure to advance the GENIUS Act and related bills delays the establishment of regulatory clarity for stablecoins such as USDC and USDT, impacting companies like Circle and Tether. Although the markets have not experienced a sharp downturn, the ongoing uncertainty is expected to increase investor caution and prolong market volatility.

Industry stakeholders are closely watching these developments, recognizing that the outcome of legislative efforts will significantly influence the future of U.S. crypto regulation and market stability. The current stalemate also affects the administration’s oversight of a $9.4 billion House-passed package, with both markets and policymakers awaiting further action from the Senate.

As Congress remains divided, the prospects for digital asset legislation remain uncertain. The House’s rejection of the procedural vote underscores the challenges confronting pro-crypto advocates and suggests that regulatory clarity for the industry may remain elusive in the near term.