The US legislative framework for cryptocurrencies has regained momentum as the House of Representatives has progressed with essential bills, notably the GENIUS Act, aimed at regulating stablecoins. On July 16, lawmakers voted 215-211 in favour of advancing three critical cryptocurrency bills, including the Digital Asset Market Clarity Act, setting a precedent for clearer regulation of digital assets. This follows a surprisingly adverse vote earlier in the week, where a faction of Republican lawmakers broke ranks, voting alongside Democrats against the legislation, which caused initial disappointment in the industry.
This reversal in support for the bills came after a meeting between President Trump and the dissenting Republicans. Trump stated via his social media platform that he had secured their commitment to back the GENIUS Act, contributing to the successful procedural vote the next day. The renewed support signals a potential pathway for the GENIUS Act to reach Trump’s desk before the week concludes.
In addition to the GENIUS Act, the House also supported a proposal aimed at clarifying jurisdictional roles between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) in overseeing digital assets. Another proposed bill seeks to prevent the Federal Reserve from issuing a retail central bank digital currency (CBDC).
Despite the support from some Republicans, all Democrats opposed these legislative advancements, indicative of the growing political divides regarding cryptocurrency regulation.
The previous Tuesday’s vote against the GENIUS Act surprised many, with twelve Republicans voting with Democrats, resulting in a 196-223 defeat for the crypto initiatives. Many of these Republicans labelled as “hard-line conservatives,” expressed concerns regarding CBDCs and preferred that all three bills be consolidated into a single proposal, as stated by House Speaker Mike Johnson.
Speaker Johnson acknowledged the different perspectives within the Republican Party regarding the proposed legislation, emphasizing the discussions around merging bills for a more cohesive approach to cryptocurrency regulation. This indicates an ongoing debate among Republican lawmakers about the best strategies for addressing future cryptocurrency legislation while ensuring the concerns of various factions within the party are met.
Key Republican figures, like Marjorie Taylor Greene, remain sceptical about the proposals. Greene has voiced concerns regarding the GENIUS Act’s lack of provisions banning CBDCs, reflecting the broader fears among certain lawmakers that such currencies could lead to unwanted government control over digital transactions.
Greene’s position aligns with the sentiments of other Republicans who call for stringent measures against CBDCs, arguing that legislative action is essential to ensuring freedom from government interference in digital currencies. Following the procedural vote, Greene reiterated her opposition to the GENIUS Act, labelling it inadequate in safeguarding citizens’ financial freedoms by failing to prohibit central bank digital currencies.
As the House prepares for a potential full vote on these bills, this legislative push reflects a significant and dynamic period for crypto regulation in the United States. The outcome may shape the nation’s approach to digital assets and influence how the industry evolves in response to government oversight, positioning the US within the growing global discourse on cryptocurrency regulation.
In summary, the legislative prospects for cryptocurrency in the US are optimistic following key developments in the House of Representatives. With President Trump’s involvement appearing pivotal in unifying Republican lawmakers, the future of crypto regulation now rests on the full House’s upcoming decisions.
