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In a major blow for the crypto industry, several bills championed by President Donald Trump failed to pass a crucial procedural vote in the House of Representatives on Tuesday.
According to CNBC, the final tally stood at 196-223, with 13 Republican representatives siding with Democrats to block the motion, marking a rare moment of dissent among House Republicans.
House Rejects Key Crypto Legislation
The proposed legislation included notable measures such as the GENIUS Act, which aimed to establish regulatory clarity for cryptocurrencies including stablecoins, which have gained notable traction over the past months among traditional firms.
In light of the failed vote, House leadership has indicated plans to hold another vote later in the day. However, it remains uncertain whether this subsequent vote will address the same bills or if amendments will be made to appease those who opposed the original motion.
This vote occurred during “Crypto Week,” a period enthusiastically promoted by President Trump in an earlier Tuesday post on the social media site X (formerly Twitter), in which the president stated:
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. Digital Assets are the FUTURE, and we are leading by a lot! Get the first Vote done this afternoon (ALL REPUBLICANS SHOULD VOTE YES!).
Market Reacts Negatively
Despite the optimism surrounding “Crypto Week,” the failure of the vote sent ripples through the market. Notable crypto-linked stocks took a hit in response, with shares of stablecoin issuer Circle (CRCL) plummeting more than 7% toward $195.
After the news broke, crypto exchange Coinbase (COIN) also saw its stock decline by over 4%, while digital asset firm Marathon Digital Holdings (MARA) experienced a dip of more than 2%.
Featured image from DALL-E, chart from TradingView.com
