• by Boredlisted

In a major blow to the U.S. cryptocurrency industry, several high-profile crypto regulation bills championed by President Donald Trump have failed to clear a crucial procedural vote in the House of Representatives. The unexpected defeat has cast a shadow over what was promoted as “Crypto Week,” a legislative push that many in the digital asset sector had hoped would result in landmark crypto policy changes.

The House vote on Tuesday, July 15th, ended in a surprising 196-223 tally, with 13 Republicans breaking party lines to vote with Democrats against the motion. The bills, which include provisions for stablecoin regulation, crypto asset classification, and restrictions on central bank digital currencies (CBDCs), were halted due to the failure to pass a rule that would have established the terms of debate. Without this step, none of the cryptocurrency legislation can move forward.

Crypto Market Reacts to Legislative Setback

The crypto market swiftly responded to the news. Shares of Circle, the stablecoin issuer, fell more than 7%, Coinbase stock dropped over 4%, and MARA Holdings, a major digital asset firm, dipped more than 2%. These declines reflect investor concern over the lack of regulatory clarity in the U.S. crypto space—something these bills aimed to address.

What Was at Stake in the Crypto Legislation Package?

The three primary bills that failed to advance include:

1. GENIUS Act: Passed in the Senate with bipartisan support, this bill aims to establish a clear regulatory framework for stablecoins, a cornerstone of the cryptocurrency ecosystem.
2. CLARITY Act: Designed to resolve ongoing confusion about whether a digital asset is classified as a security under the Securities and Exchange Commission (SEC) or a commodity regulated by the Commodity Futures Trading Commission (CFTC).
3. CBDC Ban Proposal: This proposal would prohibit the Federal Reserve from creating a U.S.-issued central bank digital currency, a concept that has generated significant debate among both libertarians and traditional banking proponents.

Republican Division and the Role of Trump

President Donald Trump raises his fist while boarding Air Force One, as he departs for Pennsylvania, at Joint Base Andrews, Md., July 15, 2025.

Trump, who has recently positioned himself as a vocal supporter of cryptocurrency, declared the week as “Crypto Week” on his Truth Social platform and urged House Republicans to vote in favor of the bills.

“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," Trump posted on Truth Social 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!),” Trump wrote.

However, divisions within the GOP derailed the initiative. Rep. Marjorie Taylor Greene (R-Ga.) was among those who voted against the rule. She cited the bill's failure to include a ban on central bank digital currencies and the inability to propose amendments as key reasons for her opposition.

“Congress must also include the ban on CBDC in the GENIUS Act,” Greene posted, aligning her stance with Trump’s January executive order that called for restrictions on CBDC development.

What’s Next for Cryptocurrency Regulation in the U.S.?

It remains uncertain how and when these cryptocurrency bills might be revived. Republican leadership has not yet announced whether a second vote will be scheduled or whether the current package will be amended to appease dissenting voices within the party.

The unexpected breakdown of support raises new questions about the political viability of federal crypto regulation in the near term. Industry insiders had hoped that bipartisan traction around stablecoin regulation and asset classification would finally lead to legal clarity, which many believe is necessary to keep the U.S. competitive in the global cryptocurrency race.

Why This Matters for the Crypto Industry

This failed vote underscores the ongoing regulatory uncertainty surrounding cryptocurrency in the U.S.—a major issue that continues to limit institutional adoption and investor confidence. Despite Trump’s high-profile backing and growing GOP interest in blockchain innovation, the legislative road ahead remains bumpy.

For now, the U.S. cryptocurrency sector remains in a holding pattern, with stakeholders watching closely for signs of renewed momentum or further political gridlock. As digital assets become more embedded in global finance, the urgency for a clear and unified crypto regulatory framework in the U.S. has never been greater.