Washington, D.C. — In a significant move, the House of Representatives on Thursday approved a groundbreaking bill aimed at regulating cryptocurrency markets, overcoming initial setbacks caused by internal disagreements among Republican representatives.
The legislation, formally known as the GENIUS Act, marks the first comprehensive crypto-related law to successfully pass through Congress. It is now awaiting review and potential approval by President Trump.
The bill garnered bipartisan support, passing with a vote of 308 to 122, with 206 Republicans and 102 Democrats voting in favor.
Earlier in the week, on Tuesday, a group of approximately twelve conservative lawmakers blocked a procedural vote intended to advance a trio of crypto-focused bills, including the GENIUS Act. This particular act is designed to establish a regulatory structure for the $250 billion market centered around stablecoins, a type of cryptocurrency whose value is pegged to assets like the U.S. dollar.
House Speaker Mike Johnson, representing Louisiana as a Republican, promptly suspended scheduled floor votes. Subsequently, the dissenting members visited the White House for discussions with Mr. Trump, who later indicated that an agreement had been reached and they would support the bill.
However, further complications arose during Wednesday’s procedural vote when some of the previously dissenting representatives initially voted against advancing the legislation before ultimately reversing their positions, albeit temporarily. A subsequent procedural vote, required to initiate debate on the package of bills, was held open for nearly ten hours. During this period, the holdouts advocated for merging a broader market structure bill with legislation aimed at prohibiting a central bank digital currency.
Representative Andy Harris of Maryland, a Republican who leads the House Freedom Caucus, stated that the dissenting members had reached an understanding with Mr. Trump to combine the two digital asset proposals.
This strategy encountered resistance from the authors of the initial legislation and disrupted the schedule Republican leaders had termed “crypto week.”
Originally, House Republicans envisioned pairing the GENIUS Act with the CLARITY Act, a more expansive bill outlining rules for determining whether a digital asset should be classified as a commodity or a security. Combining the bills would have necessitated sending the consolidated legislation back to the Senate, potentially delaying the process. Mr. Trump had urged Congress to swiftly approve the GENIUS Act as a standalone measure, arguing it would position the U.S. as a leading force in the digital asset space.
This week, conservative representatives advocated for linking the CLARITY Act with the controversial Anti-Central Bank Digital Currency Surveillance State Act, which seeks to prevent the Federal Reserve from issuing a central bank digital currency. These conservatives argued that the Senate’s stablecoin bill, as well as the broader market structure legislation, were inadequate because they potentially allowed for the creation of a central bank digital currency, which they opposed.
“We believe it’s crucial to address all of these issues in a comprehensive manner,” stated Representative Chip Roy of Texas, a Republican who participated in stalling the bill.
Ultimately, an agreement was reached late Wednesday to link the ban on a central bank digital currency with the must-pass annual defense reauthorization bill. Consequently, the dissenting members shifted their votes, enabling the legislative process to continue.
The Senate previously approved the bipartisan stablecoin bill last month after overcoming challenges stemming from Democratic opposition. These Democrats raised concerns about the Trump family’s crypto-related business ventures and the potential for foreign influence.
The Trump family’s crypto investments have reportedly increased their wealth by billions in recent months, coinciding with the administration’s efforts to ease federal regulations on the digital currency industry. The White House has denied any conflicts of interest, asserting that Mr. Trump’s assets are held in a trust managed by his children.
Democratic critics have also expressed concerns that the legislation lacks sufficient safeguards to protect consumers, the financial system, and national security.
Similar criticisms have been voiced by House Democrats.
“By passing this bill, Congress is signaling its acceptance of corruption and foreign influence,” stated Representative Maxine Waters of California, the ranking Democrat on the House Financial Services Committee, on Thursday.
Democrats who support the legislation maintain that regulations are overdue, even if the current measure is not perfect.
“The fundamental question is whether we prefer some level of regulation or no regulation at all,” stated Representative Josh Gottheimer of New Jersey, a Democrat, during floor debate.
The broader market structure bill also secured bipartisan approval and is now headed to the Senate. The legislation prohibiting a central bank digital currency was approved primarily along party lines.