House "Cryptocurrency Week" Starts with a Setback, Republican Lawmakers Turn Against!

In a procedural vote on Tuesday, conservative Republican lawmakers in the U.S. House successfully blocked three cryptocurrency bills, including stablecoin legislation, triggering sharp declines in related concept stocks.  

 

Impacted by this news, Robinhood and Coinbase closed lower on Tuesday, while Circle Internet, the world’s second-largest stablecoin issuer, dropped over 4%.

 

Bitcoin, which hit an all-time high on Monday, fell more than $3,000 following the announcement.  

Republican Lawmakers Flip, Speaker Says It’s Due to Bundling Intent  

The final House vote resulted in 196 in favor and 223 against, with 13 Republicans joining Democrats to oppose the procedural motion.

 

Conservative House members have previously used such vetoes to express discontent. The impact on the bills’ final outcome remains unclear; if leadership secures enough support, they could still be considered.

 

House leadership tentatively plans to hold another vote later Tuesday to push the bills forward. Media reports indicate it’s uncertain whether the second vote will target the same rules and bills or if Republican leaders will amend the content to meet opponents’ demands.  

 

House Speaker Johnson told reporters after the vote that hardline critics aimed to bundle several crypto bills into one, explaining their block on the procedural vote:  

 

“Some members are very, very keen to emphasize the House version of the bills, like you know, the Clarity Act and the anti-Central Bank Digital Currency (CBDC) bill.”  

 

“We have our own bills, and they want to push and merge these together. We’re trying to work with the White House and Senate partners. I think everyone wants to do all three, but some insist it must be one package.”  

 

Notably, the Federal Reserve has no intention of issuing a CBDC, and Chair Powell has repeatedly stressed that congressional authorization is required for any such move.  

 

The latest market updates suggest the House may attempt another vote later Tuesday. If successful, debates on crypto legislation could begin immediately, with a final vote expected later this week.