Storm clouds hovered over the US Capitol building in Washington, DC on July 1, 2025.
Several bills aimed at regulating cryptocurrency, which had the backing of President Donald Trump, faced significant setbacks in the House on Tuesday, marking a serious blow to the crypto sector.
The final count for the procedural vote was 196-223, where 13 Republicans sided with Democrats to block the proposal. This step is essential before the House can decide on the rules for debating the legislation.
This event was notable because it showcased House Republicans breaking away from Trump’s influence during what was dubbed “Crypto Week.” Many had expected this measure to pass.
Another vote was anticipated later on Tuesday, although it remained unclear if this would focus on the same rules and bill or if amendments would be made to appease GOP members who were against the initial motion.
Following the unsuccessful vote, stocks related to cryptocurrency experienced declines.
Circle, a stablecoin company, saw its stock drop by over 7%, while Coinbase fell by more than 4%. Additionally, stocks from digital asset firms like Mala Holdings dipped by over 2%.
Among the three bills that failed was the Genius Act, which recently passed in the Senate and aims to regulate stubcoins.
The second proposal, known as the Clarity Act, seeks to define whether an asset is considered a security under the Securities and Exchange Commission or a product overseen by the Commodity Futures Trading Commission.
The third measure aims to prohibit the Federal Reserve from instituting a digital currency for central banks.
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Rep. Marjorie Taylor Greene, a Republican from Georgia who voted against the measure, expressed her stance, noting that her vote against the Genius Act rules was due to its failure to allow amendments that would include a ban on digital currencies from central banks. Greene emphasized that Trump’s executive order should reflect this ban.
Before the vote, Trump had expressed his support for “Crypto Week” on his social media, encouraging all House Republicans to endorse the measure and claiming that it would position America as the leading force in digital assets.
He stated that the Genius Act would ensure the U.S. stays ahead of competitors like China and Europe, asserting that digital assets were the way forward for the nation.
