US Crypto Assets Bill Unexpectedly Stalled, House Vote Fails to Pass

This week was supposed to be an important moment for the Crypto Assets industry in Washington, but on Tuesday it encountered an unexpected setback. Three highly anticipated Crypto Assets regulatory bills failed to pass in procedural voting.

The voting results showed 196 votes in favor and 223 votes against. Among them, 13 Republican representatives voted against alongside the Democrats, blocking the procedural motion to debate and advance the proposed bill. This means that unless the House of Representatives passes the relevant rules of procedure again, these bills will not enter the substantive debate stage.

Earlier this week, the sentiment in Washington's crypto industry was high, with widespread expectations that these bills would pass smoothly. However, the voting results were unexpected.

The blocked "package" of Crypto Assets legislation includes three bills that are crucial to the industry:

• GENIUS Act: This bill regarding stablecoin regulation gained some support from Democrats in the Senate last month and was successfully passed. It aims to provide a clear regulatory framework for stablecoins and is seen as key to unlocking broader institutional adoption.

• CLARITY Act: The purpose of this act is to clarify the classification rules for digital assets, specifying 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.

• Preventing Central Bank Digital Currency (CBDC) Legislation: This proposal aims to prohibit the Federal Reserve from creating a central bank digital currency, reflecting concerns among some lawmakers about government control over digital currencies.

These bills are seen as the cornerstone of the United States' establishment of a comprehensive and predictable regulatory framework in the digital asset space, which could bring much-needed certainty to the market, attracting more capital and innovation.

The most striking aspect of this vote is undoubtedly the opposition from 13 Republican representatives. According to reports, several Republican representatives, including Marjorie Taylor Greene, Chip Roy, Michael Cloud, and Anna Paulina Luna, cast votes against it.

Marjorie Taylor Greene from Georgia publicly explained her position on social media. She stated that the GENIUS Act failed to include a ban on central bank digital currencies (CBDCs) and that Speaker Johnson would not allow related amendments to be submitted. Greene emphasized that Trump's executive order on January 23 already included a ban on CBDCs, so Congress must also incorporate it into the GENIUS Act, asserting that "Americans do not need a central bank digital currency controlled by the government."

House Speaker Johnson finds himself in a dilemma as a result. After the vote failed, he stated that Republicans "are still in dialogue, answering questions," trying to appease and gain the support of these conservatives. However, he also admitted that bundling all three bills (especially the stablecoin bill passed by the Senate and the CBDC ban bill demanded by hardliners) into one "big package" is not feasible.

After the news of the voting failure broke, stocks related to Crypto Assets fell sharply: stablecoin issuer Circle's stock dropped over 7%, a certain trading platform fell more than 4%, and digital asset company MARA Holdings' stock also declined by 2%.

House Speaker Johnson has announced his hope to restart procedural voting on the crypto bill on Wednesday local time. The Louisiana Republican told reporters as he left the Capitol that the party is still in "ongoing communication to address lawmakers' concerns" and emphasized that "these crypto bills are a joint priority of the White House, the Senate, and the House." According to reports, Trump himself is very "angry" about the voting results and is communicating with relevant lawmakers.

Even so, some analysts in the industry remain optimistic about the future of the bill. TD Cowen policy analyst Jaret Seiberg pointed out in a report to clients: "It is very likely that we will vote on the rules in the House again tomorrow (Wednesday). If it doesn’t happen tomorrow, it may be delayed until next week." Seiberg further stated that he still expects the House to pass the GENIUS Act. He believes that even if the members of the House "Freedom Caucus" oppose accepting the Senate version of the bill, they may ultimately make concessions.

Cody Carbone, CEO of Digital Chamber, is also confident about the final passage of the bill. He pointed out on social media that the best way to address the ban on CBDCs is through the "GENIUS Act": "If lawmakers are interested in banning CBDCs and competing with digital currencies issued by other countries, the way to do that is through the 'GENIUS Act' and allowing the private stablecoin market to thrive in the U.S."

This setback confirms a reality: in Washington, even the most high-profile agenda can be defeated by the subtle power balance within the party. When technological innovation meets political maneuvering, the "compliance path" of Crypto Assets is destined to be bumpy.