Crypto Week’s Unexpected Turn: GENIUS Act Rejected by US House
In a dramatic twist during the much-anticipated “Crypto Week,” the US House of Representatives surprised many by rejecting the GENIUS Act. This decision defied expectations, as it was widely believed the act would pass alongside two other significant crypto-related bills. The market responded with uncertainty, leaving investors and industry insiders to reassess their strategies. The GENIUS Act was seen as a pivotal step toward establishing clearer guidelines for stablecoin regulation.
Key Figures and Voices in the Debate
One of the most vocal critics of the GENIUS Act was US Representative Marjorie Taylor Greene from Georgia’s 14th District, who also chairs the DOGE Committee. Greene’s opposition centered on the bill’s omission of a ban on Central Bank Digital Currencies (CBDCs). She emphasized Americans’ desire to avoid a government-controlled digital currency, arguing that Republicans have a responsibility to safeguard financial privacy and freedom by opposing CBDCs.
Advertisement Banner
The unexpected rejection of the GENIUS Act has fueled new discussions about the future of crypto regulation in the United States, highlighting a growing divide over CBDC policy. As lawmakers continue to debate the landscape of digital finance, attention now shifts to Congress’s next steps.
CBDC Debate Ignites Political Tensions
US Representative Marjorie Taylor Greene also voiced criticism toward Speaker Mike Johnson for not permitting Congress members to propose amendments to the legislation. “Americans do not want a government-controlled Central Bank Digital Currency,” Greene stated emphatically. She referenced former President Donald Trump’s executive order from January 23, which called for a CBDC ban, urging Congress to align with that stance within the GENIUS Act.
The debate over CBDCs has become a pivotal issue within the broader crypto policy landscape. For critics like Greene, a CBDC represents excessive government intervention and a direct threat to personal financial privacy—a concern that resonates strongly among conservatives.
Trump’s Optimism and the Path Forward
Despite the failed vote, former President Donald Trump expressed optimism on his Truth Social account, suggesting that the legislative fight is far from over. “I am in the Oval Office with 11 of the 12 Congressmen/women necessary to pass the GENIUS Act, and after a brief discussion, they have all agreed to vote tomorrow morning in favor of the Rule,” he announced.
If the upcoming vote succeeds, it could revitalize the GENIUS Act and reshape the conversation around crypto regulation. However, the insistence on a CBDC ban may continue to hinder bipartisan support, particularly as the issue becomes increasingly entwined with the 2024 presidential race and the future of financial sovereignty in the US.
Market Dynamics: Stablecoin Dominance Declines
In the crypto market, stablecoin dominance has experienced a noticeable drop to 7.08%, continuing its decline from recent highs above 9%. This trend indicates a shift of capital from stablecoins to more volatile assets such as Bitcoin and Ethereum, a pattern typical during phases of renewed market confidence.
Stablecoin dominance is now trading below critical moving averages: the 50-week (7.72%), 100-week (7.97%), and 200-week (9.31%) SMAs. This technical breakdown underscores a weakened position for stablecoins within the broader crypto market. Historically, when dominance falls below these levels, it signals increasing risk appetite and a move toward growth assets, aligning with the current bullish momentum across altcoins and Ethereum.
This decline in dominance, despite a rising total stablecoin supply, is a positive macro signal. It demonstrates that liquidity is entering the market, supporting the prospect of continued upward movement in the coming months.
Editorial Integrity and Standards
Editorial Process: At Bitcoinist, our editorial process focuses on providing meticulously researched, accurate, and unbiased content. We adhere to strict sourcing standards, with each article undergoing thorough review by our team of top technology experts and seasoned editors. This rigorous process ensures our content’s integrity, relevance, and value for our readers.
