The U.S. House of Representatives blocks cryptocurrency legislation, stifling regulatory momentum.

CN
21 hours ago

Editor: Peter_Techub News

On Tuesday, the U.S. House of Representatives voted 196-223 to reject three important cryptocurrency bills, significantly hindering efforts to establish a clear regulatory path for the U.S. cryptocurrency industry.

This procedural vote stalled activities known as "Crypto Week," during which lawmakers were supposed to vote on comprehensive legislation related to stablecoins, digital asset classification, and central bank digital currencies.

At the core of the package was the GENIUS Act (Guiding and Establishing U.S. Stablecoin National Innovation), which passed in the Senate with strong bipartisan support (68-30). The bill requires stablecoins to be backed 1:1 by U.S. dollars or similar liquid reserves, mandates annual audits for large issuers, and provides clear registration guidelines for foreign issuers.

Additionally, the CLARITY Act was also on the agenda, aimed at addressing the jurisdictional confusion between the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) by classifying digital assets as either securities or commodities. Meanwhile, the Anti-CBDC Surveillance State Act sought to prohibit the Federal Reserve from issuing a digital dollar on privacy grounds.

The failure of the vote, opposed by 210 Democrats and 13 Republicans, has stalled the progress of what many consider landmark legislation. Aides indicated that another vote might take place later on Tuesday, but its passage seemed uncertain.

For the cryptocurrency industry, this delay could prolong market uncertainty. These bills promised clear regulation, which could encourage institutional adoption of Bitcoin and solidify its recent surge past $123,000. However, analysts warned that without legislative progress, the market could experience volatility again.

Nevertheless, optimism remains. If the Republican Party can repackage and reintroduce these bills later this week, momentum may be restored—along with the possibility of broader regulation of cryptocurrencies in the U.S.

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