TLDR
- The GENIUS Act failed a key House vote, stalling crucial stablecoin regulations in the U.S. crypto landscape.
- 13 Republicans sided with Democrats, blocking the GENIUS Act’s procedural motion, delaying key crypto reforms.
- The GENIUS Act mandates stablecoins to be fully backed by U.S. dollars or liquid assets, aiming for regulatory clarity.
- Crypto stocks, including Circle and Coinbase, saw declines after the GENIUS Act failed to pass in the House vote
The highly anticipated GENIUS Act has faced a setback after failing to pass a crucial procedural vote in the U.S. House of Representatives. This event, occurring during “Crypto Week,” marks a major blow to efforts aimed at advancing cryptocurrency regulations in the United States. Despite strong backing from President Donald Trump and the Senate, the bill’s future remains uncertain as House leaders contemplate their next steps.
House Votes Down Critical Procedural Motion
On Tuesday, the House of Representatives rejected the procedural vote to advance the GENIUS Act. The final vote ended 196-223, with 13 Republicans joining Democrats to block the motion. The defeat temporarily derailed plans for Crypto Week, which included other significant bills like the CLARITY Act and the Anti-CBDC Surveillance State Act.
The GENIUS Act is designed to regulate stablecoins, requiring them to be fully backed by U.S. dollars or similarly liquid assets. It also mandates annual audits for issuers with a market cap exceeding $50 billion.
🚨BREAKING: The 🇺🇸House procedural vote for the 3 different crypto bills has reportedly FAILED.
❌Crypto Genius Act
❌Clarity Act
❌Anti-CBDC Act pic.twitter.com/KHehq2LFXH— CryptosRus (@CryptosR_Us) July 15, 2025
President Trump had been vocal in his support for the bill, urging Republicans to pass it as written. However, the failure to pass the procedural motion indicates significant divisions within the GOP, with some members opposing the package.
Republican Leadership Faces Divisions
House Majority Leader Steve Scalise commented on the situation, stating that while he preferred to address the entire package together, the Senate and President Trump were insistent on advancing the GENIUS Act first. “The question is do we play games with the Senate bill when the president has made it clear he wants GENIUS on his desk as it’s written?” Scalise said, indicating the challenge of balancing different interests within the party.
Despite the setback, Republican leadership remains determined to bring the legislation forward. Some members of the House Freedom Caucus opposed the bill’s bundling, citing concerns about combining unrelated pieces of legislation.
This internal Republican division complicates the path forward for the crypto bills. House leaders are considering whether to reschedule the vote or modify the existing legislation to gain more support.
Cryptocurrency Market Reacts to the Delay
The failure to pass the GENIUS Act immediately affected the cryptocurrency market. Shares of crypto-related companies such as Circle, Coinbase, and MARA Holdings experienced declines.
Circle, a stablecoin issuer, saw its stock drop by more than 7%, while Coinbase fell over 4%. These movements reflect investor concerns over the stalled regulatory efforts, as the bill had been expected to provide clarity and stability for the industry.
Bitcoin, which had been trading near its all-time high, also saw a slight dip following the news. Despite this, the price of Bitcoin remains near $117,000, showing that while the setback may have caused short-term uncertainty, the market has not yet reacted dramatically.
What’s Next for Crypto Legislation?
With the procedural vote failure behind them, House leaders are exploring options to move the legislation forward. It remains unclear whether a second vote will occur on the same bill or if modifications will be made to address concerns raised by dissenting members.
The delay has left the crypto industry in a state of uncertainty, with the timing and shape of the next steps still up in the air.
While the GENIUS Act is a crucial piece of legislation for the future of cryptocurrency regulation, the current political challenges reflect the broader complexities of passing major regulatory reforms.
As the House prepares for a second vote, it is evident that the crypto industry’s legislative future depends on overcoming these internal disagreements.
The outcome of this debate could influence the direction of U.S. cryptocurrency regulation in the coming months. The stakes remain high as lawmakers continue to work through the contentious issues surrounding the industry.
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