Several cryptocurrency-related bills endorsed by former President Donald Trump stumbled during a critical procedural vote in the U.S. House of Representatives on Tuesday. The unexpected defeat saw 13 Republican lawmakers join Democrats in opposing the measure, resulting in a 196-223 tally against advancing the legislation. This development deals a significant blow to the digital asset industry during what proponents had dubbed "Crypto Week."
House Speaker Mike Johnson revealed that conservative critics demanded bundling multiple crypto bills into a single legislative package—a key factor behind the failed procedural motion. "Certain members insist on prioritizing House versions like the Clarity Act and anti-CBDC legislation," Johnson stated. "They seek consolidation despite our efforts to collaborate with Senate counterparts and the White House."
The outcome represents a rare rebuke of Trump's direct appeal. Earlier Tuesday, the former president had taken to Truth Social, urging unified GOP support: "Vote YES on this tremendous bill making America the undisputed leader in digital assets! The GENIUS Act will leave competitors in the dust—digital assets are our future!"
Market reaction was swift and severe. Stablecoin issuer Circle Internet Corp. shares plummeted over 7% intraday before settling 4.5% lower. Coinbase dropped 4% initially, closing 1.4% down, while Marathon Digital Holdings slid 2% before recovering to a 1.8% loss. Despite the selloff, Circle stock maintains a sixfold premium over its IPO price, reflecting its dominant 24% share in the $260 billion stablecoin market anchoring digital asset transactions.
The stalled legislation—including the Senate-approved GENIUS Act—would establish federal oversight for stablecoins through reserve mandates, monthly audits, and private-sector digital dollar frameworks. Industry advocates view passage as crucial for cementing U.S. crypto leadership. Treasury Secretary Janet Yellen projects the stablecoin market could surge eightfold to $2 trillion under the new rules, while White House AI and crypto lead David Sacks anticipates "trillions" in fresh Treasury demand.
The crypto sector has deployed substantial resources, spending over $245 million during the 2024 election cycle to elect what it calls "the most pro-crypto Congress in history." Fairshake, the industry's powerhouse PAC, disclosed $141 million war chest for regulatory battles and 2026 midterm campaigns mere hours before Tuesday's vote.
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