The U.S. House of Representatives has narrowly voted to advance several high-profile cryptocurrency bills, reigniting what Republican lawmakers are calling “Crypto Week.” This comes after a failed attempt to move similar legislation earlier in the week.
Key Legislative Advances on Stablecoins
- Lawmakers voted 215-211 to advance the American Stablecoin Innovation and Protection Act, known as the GENIUS Act, which sets a regulatory framework for U.S. dollar-pegged stablecoins and has already been approved by the Senate.
- The successful votes on Wednesday marked a comeback for Republican leadership following an unexpected setback on Tuesday.
- Many House Democrats continue to oppose the three bills.
The GENIUS Act aims to establish a regulatory framework for stablecoins while preventing the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) directly to individuals. If passed in the House this week, it will move to President Trump’s desk for signing.
In a separate vote, the House also chose to move forward with the Digital Asset Market Clarity Act, which would delineate regulatory responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Republican Setbacks and Internal Divisions
Wednesday’s successful votes came as a boost for Republican leadership after a disappointing outcome on Tuesday, where the House voted 196-223 against reviewing the three bills. This initial setback saw several Republican defections due to concerns over the GENIUS Act’s CBDC provisions.
According to a report by The Hill, GOP representatives Marjorie Taylor Greene, Chip Roy, Michael Cloud, and Anna Paulina Luna voted against the legislation. Greene raised concerns that the GENIUS Act could legally enable the Fed to deploy a digital dollar, a claim denied by the bill’s proponents.
Following the previous day’s failure, President Trump directly intervened, stating to reporters that “key lawmakers” had agreed to support the bill, which was broadly perceived as an effort to unify the GOP ranks ahead of Wednesday’s procedural votes.
Democrats Raise Alarm Over Proposed Legislation
No Democrats supported the advancement of any of the proposed bills, setting the stage for a partisan showdown as the legislation heads toward final votes. During a press conference earlier on Wednesday, Maxine Waters, a member of the House Financial Services Committee, warned that the GENIUS and Clarity bills would dangerously deregulate the cryptocurrency sector.
“These bills are a wrapped invitation for Trump to push his large-scale crypto scheme,” Waters stated, labeling the legislation as “two of the most dangerous laws” proposed during the current session.
Democrats have also expressed concerns that the bills would undermine consumer protections and erode the Federal Reserve’s authority, especially as Republicans seek to prevent the issuance of a Fed-backed digital dollar.
