Crypto Legislation Fails Procedural Vote

A procedural vote aimed at advancing significant cryptocurrency legislation has not passed. On Tuesday, in the House of Representatives, lawmakers voted against proceeding with votes on three bills, with a tally of 196 to 223. According to a House aide, there will be another attempt at 5 p.m. ET. This week has been designated as "Crypto Week," where the House was expected to discuss the Guiding and Establishing National Innovation for U.S. Stablecoins ("GENIUS") Act and the Digital Asset Market Clarity ("Clarity") Act. The GENIUS Act, which has already cleared the Senate, stipulates that stablecoins must be fully backed by U.S. dollars or similarly liquid assets. It would also mandate annual audits for issuers with a market cap exceeding $50 billion and establish rules for foreign issuances, potentially bringing the bill to Trump's desk by the week's end. Conversely, the Clarity Act proposes an all-encompassing regulatory framework to govern cryptocurrencies. This includes designating the roles of the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission in oversight. Additionally, it requires digital asset firms to give retail financial disclosures and secure customer funds separately from corporate ones.