The high-level campaign of President Donald Trump to position the United States, the world leader in digital assets, succeeded in surprising withdrawal on Tuesday after three major regulatory bills of the cryptocurrency supported by his administration failed to aim for a critical procedural vote in the House of Representatives.
The unexpected rejection of the rules of debate – normally a routine stage before the adoption of major legislation – effectively puts bills for the moment and highlights in -depth ideological divisions within the republican party on the way of regulating the digital economy with rapid evolution.
In a surprising result which shocked the observers of the cryptographic industry and the shaken investors, the Chamber voted 223-196 against the advancement of bills. Thirteen Republicans broke the ranks and joined the Democrats to block the motion, despite the fact that the legislation is defended by Trump and was presented as the centerpiece of what the Republicans had nicknamed the “Week of Cryptography”.
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The reverse is particularly significant because the vote of the rule determines whether a legislative package is even raised for a debate and a possible adoption. Its failure underlines the resistance to assembly in the ranks of the GOP, despite the vocal support of Trump and the effort of the republican management to supervise the bills as a pro-innovation milestone.
Among the dissidents, there was the Republican of Georgia Marjorie Taylor Greene, who published a fellowship -based statement after the vote. It criticized the Act on Engineering – The most important of the three bills – to omit an explicit prohibition of a digital currency from the Central Bank (CBDC), a characteristic that it and other preservatives consider essential. Greene also encouraged President Mike Johnson for not having given changes to the bill that would solve the CBDC problem. She underlined the executive decree of January 23 of Trump, which proposed a national ban on any CBDC issued by the United States, arguing that the Congress Package should reflect this policy.
The legislative package included the law on engineering, which had previously adopted the Senate with bipartite support and aimed to regulate stablecoins. The second bill, known as Clarity Act, aimed to clearly define the regulatory authority of Securities and Exchange Commission compared to the Commodity Futures Trading Commission to determine whether a digital asset must be classified as security or a product. A third measure was aimed at preventing the federal reserve from launching a digital currency from the Central Bank, a decision that has gained popularity among the Republicans distrust of potential surveillance or the overtaking of the government.
Trump himself had enthusiastically approved the package earlier on Tuesday, using his Truth social platform to call for unanimous republican support. He developed legislation as a game changer that would catapult America well in advance on geopolitical rivals in digital financial space.
“The act of genius will put our Lightyars as a large nation before China, Europe and all the others, who are constantly trying to catch up, but they simply cannot do it,” wrote Trump. He added that “digital assets are the future, and we are leading a lot!” Undering the GOP legislators to make “the first vote made this afternoon”.
But despite the fanfare, Tuesday’s vote revealed a schism within the Republican Caucus – between those who wish to embrace the emerging cryptographic economy and others requiring more strict restrictions, in particular on the technologies which they consider to be infiltrated with individual freedom.
The republican management of the Chamber, visibly frustrated by the rebellion in their ranks, canceled the plans for a second vote later in the day, leaving the future of uncertain bills. There has been no immediate details to know if they reintroduce the packaging in its current form or make changes to appease criticism like Greene.
Legislative failure has sent immediate shock waves through financial markets. Actions related to the crypto fell sharply after the vote. Circle, the Stablecoin transmitter behind the USDC, saw its actions plumber more than 7%. Coinbase, the largest crypto exchange in the United States, fell by more than 4%, while the digital asset company Mara Holdings decreased by more than 2%, reflecting investor anxiety in the face of regulatory clarity at the stage in the largest economy in the world.
The defeat of Bills is also a major blow for the wider digital asset industry, which had considered the Trump’s push of the crypto week as a turning point. After years of regulatory ambiguity and Turf Wars agency, the industry had hoped for a clear and coherent federal framework which would legitimize stablecoins, clarify the compliance obligations and draw a firm line against the deployment of a digital currency of the central bank.
Instead, the moment has been dissolved in the intestine struggles and uncertainty. He exposed not only the political disagreement, but also the deeper ideological flaws lines among the Republicans – between populists fearing a state of surveillance and tax conservatives in the hope of exploiting new technologies for economic growth.
Trump’s influence on the party remains strong, and it is possible that the pressure of its base pushes republican leaders to revive the effort. But for the moment, the dream of using the crypto week to establish the United States as the “undisputed leader” in digital assets has been delayed-perhaps indefinitely.
Only time will tell us if a revised whole can meet various requests within the party without alienating the Republicans or moderate Democrats.
