The highly anticipated “Crypto Week” in the US House of Representatives faced an unexpected delay when a key cryptocurrency bill hit a procedural roadblock, prompting former President Donald Trump to intervene and broker an agreement.
“Crypto Week” Kicks Off
The week of July 14 was dubbed “Crypto Week” by former President Donald Trump and leading Republicans in the House. The goal was to advance significant legislation aimed at formalizing cryptocurrency regulation in America.
Three crucial bills were on the agenda: the Digital Asset Market Clarity (CLARITY) Act, which seeks to establish safeguards for cryptocurrencies; the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, focusing on asset-backed digital currencies; and the Anti-CBDC Surveillance State Act, designed to prevent the US Federal Reserve from issuing a central bank digital currency (CBDC) due to privacy concerns.
A Procedural Snag
Despite the high expectations, “Crypto Week” hit a rough patch on Tuesday. The GENIUS Act, a cornerstone of the legislative push, faced opposition from hardline conservatives during a procedural vote. This unexpected hurdle led House Speaker Mike Johnson to cancel the remaining votes scheduled for the day.
Trump Steps In
To control the potential fallout and keep the legislative efforts on track, Donald Trump quickly intervened. He announced on Truth Social that he had met with “11 of the 12 Congressmen/women necessary to pass the GENIUS Act.”
Trump confirmed that these members had agreed to vote in favor of the rule the following morning, clearing the path for the bill to proceed. This swift action aimed to salvage the week’s legislative agenda.
Market Volatility Follows
The legislative snag had an immediate impact on the cryptocurrency markets. Bitcoin, which had rallied over 9 percent to cross the $120,000 mark earlier on Tuesday, saw its value moderate after the vote delay. Ethereum, however, rebounded strongly from its initial lows, surging significantly.
Crypto-related stocks also experienced fluctuations. Stablecoin issuer Circle Internet Group, Bitcoin miner MARA Holdings, and exchange operator Coinbase all saw their stock prices dip at market close on Tuesday. However, pre-market indications suggested a positive uptick, possibly in response to Trump’s intervention.
Support and Criticism
Supporters, like French Hill, Chairman of the House Committee on Financial Services, emphasized the need for clear digital asset regulation. He highlighted stablecoins as a potential cornerstone for a modern payment system, provided they operate under a clear regulatory framework.
However, the proposed bills, including the GENIUS Act, have faced criticism. US House Representative Maxine Waters argued that the legislation was “written by and for the crypto industry.” She drew parallels to past financial deregulation that led to significant market shifts. Waters also pointed to Trump’s family interests in cryptocurrencies, which Forbes calculated to have earned them nearly $1.2 million.
What’s Next?
Following Trump’s intervention, the US House of Representatives was scheduled to hold another vote on the bill. This rescheduled vote aimed to finally move the GENIUS Act forward, reflecting the continued push for formal cryptocurrency regulation in the US.
- “Crypto Week” in the US House aims to formalize cryptocurrency regulation with three key bills.
- The GENIUS Act faced a procedural hurdle due to conservative opposition, causing vote cancellations.
- Donald Trump successfully intervened, securing agreement from key lawmakers to proceed with the bill.
- Crypto markets and related stocks experienced volatility, with some rebounding after Trump’s action.
- The legislation faces both strong support for clear regulation and criticism over industry influence and potential conflicts of interest.
The push for clear digital asset regulation continues to be a central debate in Washington, with significant implications for the global crypto market.
