President Donald Trump’s high-profile campaign to position the United States as the global leader in digital assets hit a stunning setback on Tuesday after three major cryptocurrency regulation bills backed by his administration failed to clear a critical procedural vote in the House of Representatives.
The unexpected rejection of the rules of debate—normally a routine step before the passage of major legislation—effectively stalls the bills for now and highlights the deepening ideological divisions within the Republican Party on how to regulate the fast-evolving digital economy.
In a surprising outcome that shocked crypto industry observers and rattled investors, the House voted 223-196 against advancing the bills. Thirteen Republicans broke ranks and joined Democrats to block the motion, despite the legislation being championed by Trump and billed as the centerpiece of what Republicans had dubbed “Crypto Week.”
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The setback is particularly significant because the rule vote determines whether a legislative package is even brought up for debate and eventual passage. Its failure underscores mounting resistance within GOP ranks, despite Trump’s vocal support and the Republican leadership’s effort to frame the bills as a pro-innovation milestone.
Among the dissenters was Georgia Republican Marjorie Taylor Greene, who issued a blistering statement following the vote. She criticized the GENIUS Act—the most prominent of the three bills—for omitting an explicit ban on a central bank digital currency (CBDC), a feature she and other conservatives consider essential. Greene also faulted Speaker Mike Johnson for not allowing amendments to the bill that would address the CBDC issue. She pointed to Trump’s January 23 executive order, which proposed a nationwide prohibition of any U.S.-issued CBDC, arguing that the congressional package should reflect that policy.
The legislative package included the GENIUS Act, which had previously passed the Senate with bipartisan support and aimed to regulate stablecoins. The second bill, known as the CLARITY Act, aimed to clearly define the regulatory authority of the Securities and Exchange Commission versus the Commodity Futures Trading Commission in determining whether a digital asset should be classified as a security or a commodity. A third measure aimed to bar the Federal Reserve from launching a central bank digital currency, a move that has gained popularity among Republicans wary of potential surveillance or government overreach.
Trump himself had enthusiastically endorsed the package earlier on Tuesday, using his Truth Social platform to call for unanimous Republican support. He framed the legislation as a game-changer that would catapult America far ahead of geopolitical rivals in the digital financial space.
“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,” Trump wrote. He added that “Digital Assets are the FUTURE, and we are leading by a lot!” urging GOP lawmakers to get “the first vote done this afternoon.”
But despite the fanfare, Tuesday’s vote revealed a schism within the Republican caucus—between those eager to embrace the emerging crypto economy and others demanding tighter restrictions, especially on technologies they view as infringing on individual liberty.
House Republican leadership, visibly frustrated by the rebellion within their ranks, called off plans for a second vote later in the day, leaving the future of the bills uncertain. There was no immediate clarification on whether they would reintroduce the package in its current form or make changes to appease critics like Greene.
The legislative failure sent immediate shockwaves through financial markets. Crypto-related stocks slumped sharply after the vote. Circle, the stablecoin issuer behind USDC, saw its shares tumble more than 7%. Coinbase, the largest crypto exchange in the U.S., dropped over 4%, while digital asset firm MARA Holdings declined more than 2%, reflecting investor anxiety over stalled regulatory clarity in the world’s largest economy.
The defeat of the bills is also a major blow to the broader digital asset industry, which had viewed Trump’s Crypto Week push as a turning point. Following years of regulatory ambiguity and agency turf wars, the industry had hoped for a clear and consistent federal framework that would legitimize stablecoins, clarify compliance obligations, and draw a firm line against the rollout of a central bank digital currency.
Instead, the moment dissolved into infighting and uncertainty. It exposed not just policy disagreement, but also deeper ideological fault lines among Republicans—between populists fearing a surveillance state and fiscal conservatives hoping to harness new technologies for economic growth.
Trump’s influence over the party remains strong, and it is possible that pressure from his base will drive Republican leaders to revive the effort. But as of now, the dream of using Crypto Week to establish the U.S. as the “undisputed leader” in digital assets has been delayed—possibly indefinitely.
Only time will tell whether a revised package can satisfy the diverse demands within the party without alienating moderate Republicans or Democrats.