House Republicans have failed to pass a procedural motion that would have allowed consideration of several crypto-related bills – the GENIUS Act, the Digital Asset Market Clarity Act, the Anti-CBDC Surveillance State Act, as well as the defense appropriations bill. The vote tally ended 196 in favor and 222 against, after 13 conservative Republicans joined the Democrats in voting ‘no.’
Members of the House Freedom Caucus opposed the move due to the compaction of the GENIUS Act with other crypto legislation. Failure to push for a unified framework in the so-called “Crypto Week” signifies deeper fractures in the GOP. This leaves the future of cryptocurrency in the United States hanging in the balance.
What Happened and Why the Procedural Motion Failed
The news of a failed procedural vote in the House of Representatives sent shock waves through the crypto market. In what was termed a ‘groundbreaking week’, several conservative Republicans joined Democrats in blocking a procedural vote that would have determined the fate of cryptocurrency in the United States. The vote was blocked over a dispute on how the measures should be packaged and considered.
Conservative Republicans wanted all three crypto bills to be consolidated into one. They were afraid that each measure might proceed independently and jeopardize priorities, such as resisting CBDCs. This internal divide in the GOP has stalled all progress for now and left the legislative process in limbo.
The fallout caused market jitters. For example, crypto-related stocks, such as Coinbase Global (COIN.0) and Circle (CRCL.N), fell following the news. Also, Bitcoin witnessed a pullback, dropping 3% from $123k to $117k. Apart from the crypto market, the Defense Spending Bill was also ensnared in the process, raising concerns about a funding gap in the upcoming fiscal year.
Why the Failed Procedural Motion Process Could Be Fatal
Without regulations, stablecoins remain in a grey area. Firms face issuance and custody risks. This is what the Stablecoin Act would resolve if passed into law.
In addition, classifying tokens as securities or commodities would continue to create confusion if the CLARITY Act isn’t signed. The framework defines token status, creating a jurisdiction where the SEC and CFTC will preside independently without clashing with each other.
The Anti-CBDC Act, which dissuades the development of a potential digital dollar, can’t proceed until the legal hurdles are cleared. The crypto ecosystem would be in limbo without these frameworks being cleared.
Donald Trump Steps In to End Legislation Dispute
U.S. President Donald Trump, on hearing the saga at the House, stepped in to broker a deal among Republican lawmakers. Trump revealed on Tuesday evening that he was meeting with 11 of the 12 members of Congress at the Oval Office, the required number needed to pass the legislation.
The Republican President disclosed on his social media platform, Truth, that the Congress members have all decided to vote in favor of the Rule. Meanwhile, House Speaker Mike Johnson told reporters after the failed procedural vote that he hoped Congress would open another floor voting.
Experts and crypto enthusiasts are watching closely to see the results of the next floor meeting. The market is in increased volatility, as any new development could push the market sideways. Meanwhile, crypto PACs and interest groups are watching from close range. With midterms approaching, the decision in Congress would influence 2026 fundraising.
Will the Vote Proceed?
Failure to proceed is dangerous to the crypto market. Without a clear legislative strategy and unified leadership, the United States can’t move forward with its pro-crypto policy reforms. The question now is, “Will Crypto Week recapture the momentum?” Will the world’s largest economy continue to play catch-up to Europe and Asia in advanced frameworks?
