"Crypto Week" encounters a chill! Multiple cryptocurrency bills rejected by the House of Representatives, Circle once fell over 7%
The U.S. House of Representatives failed to pass several cryptocurrency regulatory bills supported by Trump, resulting in a significant setback for the crypto industry. The voting results were 196 votes in favor and 223 votes against, with 13 Republican lawmakers joining Democrats in opposition. The bills did not make it to formal debate, and Circle's stock price briefly fell over 7%, ultimately closing down 4.58%. The bills that were shelved include the GENIUS Act and the CLARITY Act, which aim to establish a regulatory framework for stablecoins and define the regulatory responsibilities for crypto assets
According to the Zhitong Finance APP, several cryptocurrency regulatory bills supported by U.S. President Trump failed to pass a key procedural vote in the House of Representatives on Tuesday, dealing a significant blow to the entire cryptocurrency industry.
The vote resulted in 196 votes in favor and 223 votes against, with 13 Republican members joining Democrats in opposing the procedural motion of the bill. Due to the failure to pass the procedural rules, the bill could not proceed to formal debate and voting.
This move not only rarely shows the House Republican members' "rebellion" against Trump but also stalls a bill that was widely expected to pass smoothly in the market. The House leadership plans to attempt to push for a vote again as early as Tuesday evening, but it is unclear whether there will be any modifications to the bill's content or rules to gain the support of conservative members.
Following the failed vote, cryptocurrency-related stocks fell sharply. Stablecoin issuer Circle (CRCL.US) saw its stock price drop more than 7% at one point, ultimately closing down 4.58%; Coinbase (COIN.US) fell 1.52%, and MARA Holdings (MARA.US) dropped 2.34%. Nevertheless, since its listing last month, Circle's stock price has still increased more than six times its issuance price.
The three bills that have been shelved include the "GENIUS Act": aimed at establishing a federal regulatory framework for stablecoins, requiring 100% reserves, monthly audits, and allowing qualified private entities to issue digital dollars with U.S. government approval. This bill passed in the Senate last month with some support from Democrats and is seen as the first federal-level stablecoin regulatory proposal in the U.S. The "CLARITY Act": intended to define whether crypto assets are securities or commodities, to be regulated by the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). A proposal to prohibit the Federal Reserve from issuing central bank digital currency (CBDC), which has significant controversy within the Republican Party.
One of the opponents of the vote, Republican Representative Marjorie Taylor Greene from Georgia, wrote on social media: "I voted against the procedural rules of the GENIUS Act because the bill does not prohibit CBDC, and because Speaker Johnson did not allow us to submit relevant amendments."
She emphasized that Trump had clearly called for a ban on CBDC in his executive order on January 23, so "Congress must also reflect this ban in the GENIUS Act."
On Tuesday, Trump posted on his social platform Truth Social, stating, "The House is about to vote on a major bill that will make the U.S. the undisputed world leader in the digital asset space."
However, the divisions within the House Republicans have dealt a blow to Trump's high-profile legislative efforts during "Crypto Week."
Circle, as the issuer of the USDC stablecoin, holds about 24% of the global dollar-pegged stablecoin market. This round of legislation was originally seen as a key step to promote the mainstreaming of stablecoins and enhance the clarity of U.S. digital asset regulation, and it was considered a significant breakthrough for the cryptocurrency industry striving for "compliance onshore." According to reports, the cryptocurrency industry has invested over $245 million in lobbying and political donations in 2024 alone to support pro-crypto congressional members, creating the most supportive U.S. Congress for digital assets in history. U.S. Treasury Secretary Scott Bessenet has stated that once the GENIUS Act is passed, the market size for U.S. stablecoins is expected to grow from the current hundreds of billions to over $2 trillion.
David Sacks, the White House's head of AI and cryptocurrency affairs, further predicts that the bill will "almost overnight" unleash potential demand for U.S. Treasury bonds worth trillions of dollars.
Meanwhile, Fairshake, the most influential political action committee in the cryptocurrency industry, also disclosed on Tuesday that it holds $141 million in funds to provide "ammunition" for regulatory victories and support candidates in the 2026 midterm elections
