Trump personally supervises the battle, and "Crypto Week" is unexpectedly cold

Author: BitpushNews

"Crypto Week", which was seen as the "highlight moment" of the cryptocurrency industry in Washington, suffered a setback on Tuesday, when three cryptocurrency regulatory bills pushed by Trump unexpectedly "failed" in a procedural vote.

The vote on Tuesday was 196 in favor and 223 against. Thirteen Republican House members joined the Democrats in voting against the bill, jointly blocking the procedural motion that determines the debate and advancement of the bill.

This means that unless the House of Representatives passes the relevant rules of procedure again, these bills that carry the industry's hopes will not be able to enter the substantive debate stage.

"Crypto Week" Vision: Trump personally supervises the battle

Earlier this week, crypto sentiment in Washington was high, with widespread expectations that the bills would pass without a hitch.

Trump himself also cheered for "Crypto Week" on his "Truth Social" platform, portraying it as a key step for the United States to be the "undisputed, number one leader" in the field of digital assets. He called on all Republican congressmen to vote in favor on social media, firmly believing that "the GENIUS Act will put our great country light years ahead of China, Europe and all other countries that are endlessly catching up but just can't do it."

The blocked cryptocurrency legislation “package” includes three bills that are critical to the industry:

• GENIUS Act: This bill on stablecoin regulation was successfully passed in the Senate last month with some Democratic support. It aims to provide a clear regulatory framework for stablecoins and is seen as a key to unlocking wider institutional adoption.
• CLARITY Act: The bill aims to clarify the classification rules for digital assets, clarifying which assets should be regulated as securities by the U.S. Securities and Exchange Commission (SEC) and which should be regulated as commodities by the Commodity Futures Trading Commission (CFTC), in order to end the "regulatory gray area" that has long plagued the industry.
• Block Central Bank Digital Currency (CBDC) Act: This proposal aims to prohibit the Federal Reserve from creating a central bank digital currency, reflecting the concerns of some lawmakers about government control of digital currencies.

These bills are seen as the cornerstone of establishing a comprehensive and predictable regulatory framework in the digital asset sector in the United States. Their passage could have brought long-awaited certainty to the market and attracted more capital and innovation.

Dissent emerges within the Republican Party

The most eye-catching thing about this vote is the "defection" of 13 Republican congressmen. According to The Hill, many Republican congressmen including Marjorie Taylor Greene, Chip Roy, Michael Cloud and Anna Paulina Luna voted against it.

Marjorie Taylor Greene of Georgia publicly explained her position on social media.

She said that the GENIUS Act failed to include a ban on central bank digital currencies (CBDCs), and Speaker Johnson did not allow the submission of relevant amendments. Greene emphasized that Trump's January 23 executive order already included a CBDC ban, so Congress must also include it in the GENIUS Act. She believes that "Americans do not need a government-controlled central bank digital currency."

House Speaker Johnson was also caught in a dilemma. After the vote failed, he said Republicans were "still having conversations and answering questions" in an attempt to appease and win the support of these conservatives.

However, he also admitted that it is not feasible to bundle all three bills (especially the stablecoin bill that has been passed by the Senate and the CBDC ban bill demanded by hardliners) into a "big gift package". A senior Republican congressman even bluntly stated: "Packaging votes will only cause these bills to die in the Senate." These words reflect the strategic dilemma faced by the Republican leadership in balancing the demands of different factions within the party and ensuring the feasibility of legislation.

The suspense of subsequent voting: compromise or deadlock?

After the news of the failed vote came out, cryptocurrency-related stocks fell: the share price of stablecoin issuer Circle fell by more than 7%, the crypto exchange Coinbase fell by more than 4%, and the share price of digital asset company MARA Holdings also fell by 2%.

House Speaker Johnson has announced that he hopes to restart the procedural vote on the encryption bill on Wednesday local time. The Louisiana Republican told reporters as he left the Capitol that the party is still "continuously communicating and answering the concerns of members of the House of Representatives," and emphasized that "these encryption bills are a common priority for the White House, the Senate, and the House of Representatives." According to Fox News, Trump himself said he was "angry" about the voting results and was communicating with the relevant members of the House of Representatives.

Even so, some industry analysts remain optimistic about the future of the bill. TD Cowen policy analyst Jaret Seiberg noted in a note to clients: "We are likely to have another House vote on the rules tomorrow (Wednesday). If it doesn't happen tomorrow, this may have to be postponed to next week." Seiberg further stated that he still expects the House to pass the GENIUS Act because "Trump is pushing for it to take effect." He believes that even if members of the House "Freedom Caucus" oppose accepting the Senate version of the bill, they may eventually make concessions at the request of the president.

Cody Carbone, CEO of Digital Chamber, is also confident that the bill will eventually pass. He pointed out on social media that the best way to solve the problem of banning CBDC is to pass the GENIUS Act: "If lawmakers are interested in banning CBDC and competing with digital currencies issued by other countries, the way to do this is to pass the GENIUS Act and allow the private stablecoin market to flourish in the United States."

This setback confirms a reality: in Washington, even the agenda pushed by the president may be defeated by the delicate balance of power within the party. When technological innovation meets political games, the "road to compliance" of cryptocurrency is destined to be bumpy.