Updates throughout to reflect ongoing delay of legislation
'Crypto Week' aims to advance three cryptocurrency bills
Republicans face internal disputes over central bank digital currency bill
Stablecoin framework bill poised for Trump's signature after House approval
By Chris Prentice and Douglas Gillison
WASHINGTON, July 16 (Reuters) - Voting in the U.S. House of Representatives on whether to open debate on several cryptocurrency bills bogged down on Wednesday, a day after President Donald Trump intervened to try and save the initiative.
The bills would pave the way for digital assets to further integrate into traditional finance, but remained stuck late on Wednesday after several hours of closed-door negotiations among Republicans over how best to proceed.
After passing one procedural hurdle earlier in the day, another vote on whether to consider the legislation surprisingly dragged on, with a vote scheduled for five minutes remaining open for several hours. A vote on the same issue failed on Tuesday, and Trump had stepped in to try to broker an agreement with Republican holdouts.
Approving Wednesday's vote would allow the Republican-led Congress to consider the bills, which have long been sought by the crypto industry and were expected to ultimately pass. It came one day after conservative Republicans helped defeat a similar procedural measure amid a dispute among lawmakers over how to proceed with the bills, whether individually or as a package.
The procedural vote stalled while party leaders tried to reach an agreement with hardline conservatives, with two sources saying issues involve concerns over how to handle a bill to prevent a central bank digital currency.
One bill, which would establish a federal framework for stablecoins, was poised to head to Trump's desk for signature after House approval, marking a watershed victory for the crypto industry as the first federal legislation codifying standards for part of the industry.
Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly.
Republicans in the House, who had billed this week "Crypto Week," had hoped to consider two additional crypto bills, one barring the Federal Reserve from issuing its own digital currency, and another establishing market structure rules for crypto products, including when they are considered commodities and not subject to oversight of the Securities and Exchange Commission, which has sparred with the crypto industry in recent years.
The fate of all three measures is now unclear. While the procedural vote remained open late Wednesday, the House announced there would be no additional votes.
(Reporting by Chris Prentice, Douglas Gillison and David Morgan; Editing by Pete Schroeder, Cynthia Osterman, Rod Nickel and Chris Reese)
((Pete.Schroeder@thomsonreuters.com; 202-310-5485;))
