In a surprising turn of events, the House of Representatives’ “Crypto Week” got off to a rocky start on Tuesday with the failure of a procedural vote hoping to bundle the GENIUS Act, the CLARITY Act, the Anti-CBDC Surveillance State Act, and the Department of Defense Appropriations Bill into one vote. The vote failed 196-223 with many Republicans voting out-of-party-line. Now each bill will be voted upon individually.
The Democratic-led effort to kill the bill cited their main grievances weak as oversight, regulatory arbitrage opportunities, and a lack of consumer protections within the GENIUS and CLARITY Acts, along with a pervasive spirit of corrupt involvements in the crypto industry by the Trump family. There appeared to be little faith in the upside of blockchain and cryptocurrency.
Republican supporters of the effort demanded an end to America’s straggling in the crypto regulation race. Other countries like South Korea and EU member nations have already set-up licensing regimes and regulatory frameworks which have drawn innovation from Web3 giants such as Coinbase and Robinhood. The speakers focused on maintaining the US dollar’s global supremacy and bringing back innovation through clear market guidelines.
The individual votes will likely see increased partisanship; however, the Republican Party has a very slim majority making the job of House Speaker Mike Johnson much more difficult. The initial glamor of “Crypto Week” certainly has dampened and the proposed August deadline for passing the GENIUS Act and the CLARITY Act likely will be pushed back.