Crypto Week in jeopardy as House lawmakers fail to pass procedural motion

Lawmakers denied a procedural move that aimed to initiate formal deliberations on three cryptocurrency-related bills, including the GENIUS stablecoin, the CLARITY, and Anti-CBDC bills, which form the basis for the House Crypto Week.

House lawmakers hinder plans to pass crypto regulations

The House of Representatives dashed hopes for Crypto Week on Tuesday after lawmakers failed to pass a procedural motion that would have allowed the GENIUS, CLARITY, and Anti-CBDC bills to move forward for deliberation.

The motion was defeated by a vote of 196 to 223, as several Republican members joined Democrats to vote in opposition. Market participants highlighted that GOP Caucus members cited concerns over central bank digital currencies (CBDCs) and the lack of a combined legislative package as major reasons for their lack of support.

I just voted NO on the Rule for the GENIUS Act because it does not include a ban on Central Bank Digital Currency," Rep. Marjorie Taylor Greene wrote in an X post on Tuesday. "Americans do not want a government-controlled Central Bank Digital Currency. Republicans have a duty to ban CBDC," she added.

Others shared concerns that the GENIUS bill, which already passed the Senate, should be prioritized above other crypto bills.

Despite the setback, House leadership indicated potential plans to hold a second vote late Tuesday to revive the possibility of advancing each bill. However, the efforts failed after the House Press Gallery stated that the proceedings have been postponed to a date yet to be announced.

The development comes as Democratic House members pushed an Anti-Crypto Corruption Week alongside the Crypto Week. All Democrats voted against the procedural motion following the initiative from Maxine Waters and Stephen Lynch to hinder the three crypto legislation.

Likewise, an account linked to the House Committee on Financial Services Democrats threw jabs at Republican lawmakers, stating that the GOP should "make sure your entire conference is on board first" before declaring Crypto Week.

The crypto industry was particularly anticipating the passage of the GENIUS bill, which aims to regulate stablecoins and their issuers.

"Before y'all freak out, don't forget that the first procedural vote in the Senate on the GENIUS Act failed as well...the second one passed 11 days later," wrote Caitlin Long, CEO of Custodia Bank, in an X post on Tuesday.

This follows JPMorgan CEO Jamie Dimon's statement on Tuesday, highlighting that the bank will look into stablecoin to understand it better. Dimon added that the move is part of a desire to stay ahead of rising competition.

"They're trying to figure out a way to create bank accounts, to get into payment systems and rewards programs, and we have to be cognizant of that. And the way to be cognizant is to be involved," Dimon told CNBC in an interview.

However, the House's pause on several crypto regulations, including the GENIUS bill, could halt progress on stablecoin development.

Delays with the GENIUS legislation will also hinder President Donald Trump's expectations to have the bill delivered to his desk quickly. Prior to the procedural vote, Trump had urged Republicans to vote for the GENIUS bill in a post on social media platform Truth Social.

Shares of USDC issuer Circle (CRCL) closed the day with a 4.5% decline, while Coinbase (COIN) shares dropped 1.5% on Tuesday following the halt of the bills.

Bitcoin (BTC) and Ether (ETH) are changing hands at $117,700 and $3,100, respectively, at the time of publication.