Trump’s Cryptocurrency Regulation Bills Face Major Setback in House

The cryptocurrency regulations backed by Trump have hit a major snag in Congress, leading to significant turmoil in the market. The failure of these bills highlights deeper divisions among Republican lawmakers.

Unexpected Defeat Highlights Party Divisions

Trump’s Regulation Agenda Stalled Amid House Setback On July 15, the cryptocurrency regulatory bills that President Trump championed faced a significant blow when they failed to pass a crucial vote in the U.S. House of Representatives. The outcome was disappointing, with 196 votes for and 223 against, sending ripples through the cryptocurrency market. This legislative setback, on what many had dubbed ‘Crypto Week,’ highlights an unexpected divide among Republican members, with 13 breaking party lines to join Democrats in opposition.

Future of Bills Remains Uncertain

House Leadership Remains Silent on Next Steps The Republican leadership in the House has, so far, remained somewhat tight-lipped about what comes next after this procedural failure. They only mentioned that no further votes would happen on that day, leaving many in the cryptocurrency sector wondering about the future of these bills. Without clear direction, there is speculation on whether the same rules and legislation might be reintroduced or if changes will be made to entice support from the dissenting members.

Cryptocurrency Stocks Take a Hit

Market Reaction Signals Investor Concern Following the announcement of the setback, it’s no surprise that cryptocurrencies saw a notable drop. The stocks of several related companies felt the impact—Circle, a stablecoin company, saw a plunge of over 7%, while Coinbase, a trading platform, dipped by more than 4%. Even Digital Assets company MARA Holdings experienced a decline of over 2%, reflecting broader fears regarding the future of cryptocurrency legislation in the U.S.

Critical Legislation Faces Major Obstacles

Insights on Specific Bills at Risk The three primary bills, which included the GENIUS Act, CLARITY Act, and another proposing a ban on Central Bank Digital Currency (CBDC), were once considered poised for passage. The GENIUS Act, which previously gained traction in the Senate, aims to provide some regulation over the stablecoin market. Meanwhile, the CLARITY Act seeks to clarify under which regulatory body—either the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC)—digital assets could fall.

Congresswoman Greene Joins the Opposition

Marjorie Taylor Greene Voice Concerns Republican Congresswoman Marjorie Taylor Greene from Georgia was one of the notable representatives who voted against the GENIUS Act. She articulated her reservations on the social media platform X, stating that the failure to include a ban on CBDC was a major flaw. Greene highlighted Trump’s previous executive order that sought to prohibit CBDCs, calling for Congress to adhere to this stance and integrate it into the legislative agenda.

Trump’s Advocacy Falls Flat

Trump’s Call to Action Met with Resistance Despite Trump’s strong advocacy for the crypto bills earlier that day, calling for all House Republicans to support the legislation, his influence didn’t carry weight as expected. On his Truth Social platform, he described the legislation as critical for establishing the U.S. as a leader in Digital Assets. Trump’s fervent promotion stood in stark contrast to the reality of the bills’ failures, leading to some disillusionment among his supporters in the crypto community.

In conclusion, the defeat of Trump-backed cryptocurrency regulation bills in the House serves as a clear reminder of the complexities involved in U.S. politics, even within one party. The ramifications are significant—not only for the cryptocurrency market itself but also for the future regulatory landscape. With leadership remaining cryptic about future votes, industry stakeholders are left anxiously awaiting clarity on these crucial legislative efforts.