A day marked by anticipation turned into a rollercoaster for the cryptocurrency sector on Tuesday as the U.S. House of Representatives found itself at an impasse over procedural votes crucial for advancing key crypto legislation. Despite this hiccup, optimism remains as lawmakers gear up for another attempt to push through the bills as early as Wednesday.
Crypto Bills Hit a Snag
The House, focused on its crypto-centric agenda this week, faced an unexpected pause when the procedural vote needed to move forward with a trio of digital asset bills was unexpectedly scrapped. The Freedom Caucus, a group of conservative lawmakers, expressed concerns over the influence of the Senate in shaping these bills, causing the delay. This procedural misstep left the market jittery, with Bitcoin (BTC) and Ether (ETH) initially stumbling by approximately 0.5%. Yet, both cryptocurrencies managed to claw back most of their losses as the day progressed.
While the vote was initially set for later Tuesday afternoon, it was abruptly canceled just minutes before its scheduled time. A fresh attempt at voting is anticipated early Wednesday, aligning with the planned vote on the Digital Asset Markets Clarity Act. “We are likely to get another House vote tomorrow on the rule,” stated Jaret Seiberg, a policy analyst at TD Cowen. He noted that if the vote doesn’t proceed as planned, the situation might extend into the following week. For more on the legislative schedule, see our article on how the House Gears Up for Crypto Market Structure Vote on Wednesday, Stablecoins Thursday.
Presidential Push for Progress
In the midst of this legislative labyrinth, President Donald Trump has thrown his weight behind the GENIUS Act, a pivotal bill focusing on stablecoin regulation. In a series of posts on Truth Social, he urged Republican lawmakers to rally in favor of the rule, emphasizing its importance in maintaining the U.S.’s competitive edge in the rapidly evolving global crypto landscape.
Late Tuesday, Trump disclosed that he had convened with 11 lawmakers who, according to him, are now ready to support the procedural motion. Although the exact timing remains uncertain, Trump expressed hope that the vote would occur “as early as possible.”
Seiberg, reflecting on the president’s influence, remarked, “We still expect the House will pass the GENIUS Act because President Trump is pushing for its enactment.” He suggested that the Freedom Caucus members might eventually acquiesce to Trump’s demands, despite their initial objections to aligning with the Senate’s version of the bill.
Market Reactions and Uncertainty
The market’s initial reaction to the legislative delay was less than auspicious. Circle (CRCL), a prominent stablecoin issuer, took a notable hit, sliding nearly 5% on the session, although it remains significantly up since its IPO last month. The market’s resilience, however, suggests that investors are still holding out hope for a positive outcome.
Procedural hiccups are not uncommon in the legislative process, and this is not the first time a crypto bill has encountered resistance. Just last month, Senate Democrats stalled the GENIUS Act, demanding further deliberation on specific provisions. Whether a similar delay will emerge from the Republican side remains to be seen. This mirrors the challenges faced by House Democrats, as detailed in our coverage of how House Democrats Struggle to Approach ‘Crypto Week’ With Unified Front.
As the House prepares for another attempt at advancing these bills, the crypto community watches with bated breath. The implications of these legislative moves are significant, potentially reshaping the regulatory landscape for digital assets in the U.S.
Looking Ahead
The crypto world stands at a crossroads, with legislative decisions hanging in the balance. The outcome of these votes will likely influence market dynamics and regulatory frameworks for months, if not years, to come. As lawmakers wrestle with the intricacies of these bills, the broader question remains: Can the U.S. maintain its leadership in crypto amidst such political wrangling? As the dust settles from today’s events, one thing is clear—Wednesday’s agenda is critical not only for these bills but for the future of cryptocurrency regulation in America.
Source
This article is based on: ‘Crypto Week’ Back on Track? Trump Says Defecting Lawmakers Ready to Vote for Bills
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
