House Republicans’ Crypto Legislation Setback: An In-depth Analysis
In a significant move, House Republicans faced a setback on Tuesday as a vote intended to pave the way for discussions on the GENIUS Act and a range of cryptocurrency bills did not pass. The motion was defeated with a vote count of 196–222, halting the initiative to establish the first federal regulatory framework for stablecoins and blocking a related proposal for crypto regulation alongside the annual defense spending bill.
The financial markets responded to this development. Notably, shares of Circle dropped almost 5%, while Coinbase and MARA Holdings each experienced a decline of about 2%.
Internal Divisions Among Republicans
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According to the roll call, over a dozen Republicans joined Democrats in opposing the rule. Some members of Congress expressed frustration at being excluded from discussions on potential amendments. Representative Marjorie Taylor Greene voiced her objections on social media, stating her disapproval of the bill’s failure to ban Central Bank Digital Currencies (CBDCs) and criticizing Speaker Mike Johnson for limiting debate opportunities.
Senate Approval Clashes with House Resistance
Reports indicate that the GENIUS Act had already secured approval in the Senate with a 68–30 vote on June 17, 2025. Senators from both parties supported it as a means to bring stablecoins under U.S. regulatory oversight. However, conservative members in the House argued that the legislation should explicitly prevent the Federal Reserve from issuing its own digital currency. This division left party leaders scrambling to gather enough votes to advance the measure.
Controversial Bundling Strategy
House leadership attempted to combine the crypto measures with the defense appropriations bill, hoping that associating a high-profile spending bill with the GENIUS Act would facilitate the process. However, this strategy met with opposition from both sides. Defense advocates argued for a separate debate on funding, while crypto enthusiasts demanded further amendments. Consequently, the package never reached the floor for consideration.
Advocating for Crypto Regulations
In the meantime, industry groups have invested over $245 million in the 2024 election cycle to promote pro-crypto policies. Fairshake, a crypto political action committee, retains $141 million in funds for future lobbying efforts leading up to the 2026 midterms. Treasury Secretary Scott Bessent has indicated that U.S. stablecoins could expand to more than $2 trillion if a federal framework is implemented. Additionally, former President Donald Trump’s executive order from January called for a ban on CBDCs within all federal agencies. These significant figures highlight the stakes involved for an industry seeking regulatory clarity.
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