A fresh legislative push dubbed “Crypto Week” ground to a halt this week in the U.S. House, unexpectedly stalling key cryptocurrency bills due to a sharp rift among Republicans. The mix of procedural delays and intraparty clashes has left the future of crypto regulation in Congress uncertain.
What Legislation Was at Stake?
Three major bills were central to the initiative:
- GENIUS Act – to create a federal regulatory framework for stablecoins.
- CLARITY Act – to clarify the classification and structure of crypto markets.
- Anti‑CBDC Surveillance State Act – to prohibit a Central Bank Digital Currency (CBDC), seen as a threat to financial privacy (Reuters, Barron’s, Reuters).
The GENIUS Act had already cleared the Senate by a strong 68–30 margin, signaling broad support (Axios). Supporters view these bills as a pathway to encouraging institutional investment and innovation in crypto .
Procedural Setbacks on the House Floor
Attempting a procedural vote to open debate on the package, the GOP-led House encountered strong resistance:
- On Tuesday, 13 conservative Republicans combined with Democrats to block the motion, expressing unease over passing the bills as a unified package and seeking to attach the CBDC ban (AP News).
- A second attempt on Wednesday also failed to advance despite Trump’s intervention, leaving the vote stalled for over an hour before leadership pulled the plug .
Speaker Mike Johnson described the delay as a standard legislative hurdle, noting that leaders were negotiating with hardliners to resolve differences .
Trump’s Intervention and the Market Reaction
President Donald Trump actively stepped in, tweeting that he aligned with 11 Congress members on supporting the GENIUS Act’s procedural vote (Barron’s).
Nevertheless, political resistance and procedural complexities led to renewed delays:
- Markets were volatile: Bitcoin dropped 3%, while stocks of Circle and Coinbase initially fell before stabilizing (Barron’s).
- Still, Bitcoin remained resilient near $119,000–120,000 and Ethereum saw single-digit gains amid renewed optimism (Barron’s).
- Stocks tied to crypto (e.g., BitMine, Circle) experienced surges once Trump signaled backing (Barron’s).
Why the GOP Is Split
The disagreement centers on legislative strategy:
- Hardliners demand that the GENIUS Act be passed alongside the CBDC ban to prevent a Federal Reserve digital dollar (Reuters).
- Others favor moving the bills individually to expedite passage—especially for stablecoin rules, deemed a high priority (AP News).
This disagreement highlights a deeper struggle within the GOP between pragmatic legislators and more conservative members.
Implications for the Crypto Industry
The stall has significant consequences:
- Regulatory uncertainty persists—without federal rules, crypto firms face a fragmented patchwork of state regulations.
- Potential delays in institutional adoption could arise, as clear legal frameworks are prerequisites for investor confidence (Barron’s).
- Campaign stakes are rising, with crypto PACs already preparing more than $140 million for the 2026 midterms (RiverBender.com).
What’s Next?
- House leaders plan to revisit the procedural votes after ongoing negotiations and appealing to holdout Republicans (Investopedia).
- Speaker Johnson may attach the Anti-CBDC bill to the National Defense Authorization Act (NDAA) as a compromise (Axios).
- If procedural hurdles are overcome, the GENIUS Act could reach the House vote—and then President Trump’s desk—for signature.
Summary
Efforts to pass crypto legislation in the House have faltered—not due to lack of support—but because of a procedural standoff fueled by internal GOP divisions. Key bills like the GENIUS Act and the Anti‑CBDC Act face hurdles amid demands to pass them together or separately. Although President Trump’s backing stabilized market sentiment, legislative progress remains stuck. The next few days will be critical as GOP leaders work to navigate procedural roadblocks. Until they succeed, the crypto space remains in limbo.
