House Delays Crypto Bills Vote

A procedural vote aimed at advancing significant cryptocurrency legislation, originally expected to be revisited later on Tuesday, has been canceled. No additional votes are scheduled for today, as confirmed by the House Press Gallery. Earlier, House lawmakers voted 196 to 223 against proceeding with voting on three bills set for this week. Although an aide stated that there was a plan to revisit the vote at 5 p.m. ET, that plan is now in question. The House was expected to review the Guiding and Establishing National Innovation for U.S. Stablecoins ("GENIUS") Act and the Digital Asset Market Clarity ("Clarity") Act, both part of an initiative referred to as "Crypto Week." The GENIUS Act, which passed the Senate, would require stablecoins to be entirely backed by U.S. dollars or similar liquid assets, mandate annual audits for issuers with a market cap exceeding $50 billion, and outline regulations for foreign issuance. It was anticipated that this bill would reach Trump’s desk by the end of the week. On the other hand, the Clarity Act aims to establish a clear regulatory environment for all cryptocurrencies by defining the roles of the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. This act requires digital asset companies to provide retail financial disclosures and separate corporate and customer funds. The House was also expected to discuss a bill led by Majority Whip Tom Emmer, R-Minn., aiming to prevent the Federal Reserve from directly issuing a central bank digital currency to individuals. Sources suggest that Clarity may be passed on Wednesday with GENIUS following on Thursday, but the dynamics are uncertain now. Cody Carbone, CEO of Digital Chamber, remains optimistic about moving forward with the bills on Wednesday, stating, "I’m very confident these bills move forward tomorrow after additional conversations and education." A source indicated that President Donald Trump is likely to push for GENIUS to reach his desk before August, potentially accelerating votes. The initial vote faltered as several Republicans rejected the motion, including Reps. Marjorie Taylor Greene and Chip Roy, among others. Afterward, Rep. Greene expressed concerns regarding the GENIUS Act's stance on Central Bank Digital Currencies (CBDCs) on social media, asserting her opposition to the bill for lack of CBDC ban provisions. Carbone countered her claims after the vote, explaining that Emmer’s CBDC bill aims to address those concerns and emphasizing that passing GENIUS is essential to inhibit the CBDC issuance and promote private stablecoin growth in the U.S.