The U.S. House of Representatives narrowly advanced a series of significant cryptocurrency bills this week, reigniting what Republican legislators have termed “Crypto Week.” This comes after an unexpected setback just days earlier, as they push toward establishing a regulatory framework for American stablecoins.
House Progresses on Cryptocurrency Legislation
- Legislators voted 215 to 211 to advance the U.S. Stablecoin Innovation and Protection Act, or GENIUS Act.
- This decision marks a rebound for the Republican leadership following an earlier setback.
- Many House Democrats continue to oppose the three bills.
The House voted in favor of the GENIUS Act, which aims to provide a regulatory framework for U.S. dollar-pegged stablecoins, a bill that has already received Senate approval. If passed by the House later this week, it will move to President Donald Trump’s desk for his signature.
In a separate vote, the House agreed to proceed with the Digital Asset Market Clarity Act, which aims to delineate regulatory responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) concerning digital asset oversight.
Additionally, a bill to prevent the Federal Reserve from issuing a central bank digital currency (CBDC) directly to individuals will also face a final vote.
Tuesday’s Vote Falters Amid GOP Defections
Wednesday’s successful votes marked a recovery for Republican leadership following a surprise defeat on Tuesday when the House voted 196 to 223 against reviewing the three bills.
This earlier vote saw a group of Republicans defecting over concerns related to the GENIUS Act’s provisions on the CBDC.
According to a report by The Hill, GOP representatives Marjorie Taylor Greene, Chip Roy, Michael Cloud, and Anna Paulina Luna voted against the bill.
Greene raised ongoing concerns that the GENIUS Act could provide a legal basis for the Federal Reserve to deploy a digital dollar, a claim that the bill’s authors have denied.
Following the failed vote, President Trump directly intervened, telling reporters that key lawmakers were now on board with supporting the legislation. His remarks were widely interpreted as an effort to unify Republican ranks ahead of Wednesday’s procedural votes.
Dems Oppose Measures, Call Them Dangerous
No Democrats supported advancing any of the bills, setting the stage for partisan clashes as the legislation moves toward final votes.
In a press conference earlier on Wednesday, Maxine Waters, a member of the House Financial Services Committee, warned that the GENIUS and Clarity Acts would dangerously deregulate the cryptocurrency sector.
“These bills are a wrapped invitation for Trump to pursue his large-scale crypto agenda,” Waters asserted, labeling the legislation as “two of the most dangerous bills” presented during the current session.
Democrats also expressed fears that the bills could undermine consumer protections and erode the Federal Reserve’s authority, particularly as Republicans seek to ban the issuance of a Fed-backed digital dollar.
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