A group of House Republicans blocked the advancement of the GENIUS Act, which aims to establish the first-ever regulatory framework for fiat-backed stablecoins.

“The House voted 196-223 on a procedural vote setting terms for floor debate on the GENIUS Act,” Axios noted.

This week has been dubbed “Crypto Week” as the House attempts to pass three pieces of crypto-related legislation.

“HAPPY CRYPTO WEEK! The House will soon VOTE on a tremendous Bill to Make America the UNDISPUTED, NUMBER ONE LEADER in Digital Assets – Nobody does it better! The GENIUS Act is going to put our Great Nation lightyears ahead of China, Europe, and all others, who are trying endlessly to catch up, but they just can’t do it,” President Trump said Tuesday.

“Digital Assets are the FUTURE, and we are leading by a lot! Get the first Vote done this afternoon (ALL REPUBLICANS SHOULD VOTE YES!). This is our moment – Digital Assets, GENIUS, Clarity! It is all part of Making America Great Again, BIGGER AND BETTER THAN EVER BEFORE,” he continued.

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“We are leading the World, and will work hard with the Senate and the House to get even more Legislation on this passed!” he added.

Cointelegraph noted:

The president may have been referring to a House resolution to consider the three bills and a defense bill, which failed to get support from a majority of lawmakers present on Tuesday — at least 13 Republicans may have voted against the resolution.

House Speaker Mike Johnson reportedly said the chamber would take up another vote “this afternoon.”

The GENIUS Act, which passed through the Senate in June with bipartisan support despite initial resistance from many Democrats, is expected to head for a floor vote in the House by Thursday. At the time of publication, the bill was scheduled to be considered by the House sometime this week, but it was unclear whether the chamber planned a separate floor vote on Tuesday.

The Senate passed the GENIUS Act in a 68-30 vote.

Senate Passes Legislation Enabling CBDC Backdoor?

House Republicans against the GENIUS Act said it will enable a backdoor for central bank digital currencies (CBDCs).

"This week, the House is voting on the GENIUS Act which lays the groundwork for a layered Central Bank Digital Currency (CBDC) where Americans interact with stablecoins but behind the scenes there are the functional surveillance capabilities of a CBDC. The bill as written does not expressly ban a CBDC and does not protect self-custody. Self-custody means that you control your own money, not a third party," Rep. Marjorie Taylor Greene (R-GA) explained.

"On Jan 23rd, President Trump signed an executive order on digital financial technology with two important clauses: 1. People will maintain self-custody of digital assets. 2. Banning agencies from establishing a CBDC in the U.S. or abroad," she continued.

"The GENIUS Act does not follow President Trump’s executive order because it does not ban a CBDC. House Leadership did not allow any amendments banning a CBDC. This should NOT be tolerated," she added.

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"They blocked consideration of my amendments to the Clarity Act which would have prohibited Central Bank Digital Currencies as well," Rep. Thomas Massie (R-KY) commented.

"I just voted NO on the Rule for the GENIUS Act because it does not include a ban on Central Bank Digital Currency and because Speaker Johnson did not allow us to submit amendments to the GENIUS Act. Americans do not want a government-controlled Central Bank Digital Currency," Greene said in another post.

"Republicans have a duty to ban CBDC. President Trump included a ban on CBDC in his January 23rd executive order and Congress must also include the ban on CBDC in the GENIUS Act," she continued.

"I support crypto but cannot get behind anything that allows for a backdoor to CBDC. There was a vote to allow legislation to come to the floor that would enable that to happen. Thus I voted no. Happy to support any pro-crypto bill, but I will NOT back CBDC’s," Rep. Anna Paulina Luna (R-FL) said.

Axios provided additional details:

Although the House has drafted its own stablecoin legislation, it ultimately chose to take up the Senate-passed version — in part to avoid having to go back to the Senate.

President Trump has said he wants the GENIUS Act on his desk as soon as possible, so the White House is likely to resist any approach that would cause delays.

Shares in Circle Internet, the stablecoin company that has surged on hopes for the GENIUS Act, sank as the House drama unfolded. The stock was down 5% in late trading, just off the lows of the day.

Most major cryptocurrencies were broadly lower immediately following the vote as well.

Procedural votes typically receive near-total or total majority party support, even if some members ultimately vote against the actual bill.

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All three crypto bills are expected to pick up Democratic support, but the minority party doesn't typically vote for rules.

 

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