Crypto Bills Stalled: GENIUS Act Vote Fails, What’s Next?

The U.S. House of Representatives hit a roadblock during its much-hyped “Crypto Week” on July 16, 2025, when a procedural vote to advance key cryptocurrency legislation, including the GENIUS Act, failed. 

This setback has left the crypto industry and investors questioning the future of U.S. crypto regulation. 

Despite the anticipation surrounding bills like the GENIUS Act, CLARITY Act, and Anti-CBDC Surveillance State Act, internal Republican divisions and Democratic opposition derailed progress. 

Meanwhile, Bitcoin’s price dipped below $117,000, reflecting market jitters. Let’s break down what happened, why it matters, and how it impacts the crypto landscape.

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Why Did the House Vote Fail?

The House vote to advance crypto bills failed 196-223 as 13 Republicans joined Democrats in opposition. Critics wanted a unified package combining the GENIUS, CLARITY, and Anti-CBDC Acts. Disagreements, especially over CBDC language, stalled progress.

Democratic Pushback Adds Pressure

Democrats, led by Rep. Maxine Waters, opposed the crypto bills, launching “Anti-Crypto Corruption Week” to highlight weak consumer protections and Trump-related conflicts. 

They say the GENIUS Act lacks safeguards, adding to the vote’s failure and regulatory uncertainty.

Read Also: Is Trump Planning a New Bill? Looking at the New AI and Energy Plan

What Is the GENIUS Act and Why Does It Matter?

The GENIUS Act sets the first U.S. stablecoin rules, requiring reserves, AML checks, and user protections. Passed by the Senate 68-30, it aims to boost payment speed, cut costs, and strengthen the dollar’s global role. Supporters see it as a major step for crypto.

Economic and Global Implications

The $250B stablecoin market could hit $3.7T by 2030 with strong regulation. The GENIUS Act may let banks issue stablecoins, boosting competition and adoption. While it could boost U.S. finance, critics like Sen. Warren warn of weak oversight and consumer risks.

What Happened During Crypto Week?

Dubbed “Crypto Week” (July 14 - 18, 2025), the House aimed to tackle three major bills:

• GENIUS Act: Regulates stablecoins.

• CLARITY Act: Defines whether crypto assets are securities (overseen by the SEC) or commodities (overseen by the CFTC).

• Anti-CBDC Surveillance State Act: Blocks the Federal Reserve from issuing a digital dollar.

The week was billed as a historic push to make the U.S. the “crypto capital of the world,” but the failed vote disrupted plans, leaving all three bills in limbo.

Trump’s Influence and Industry Support

President Trump, a vocal crypto advocate, urged Republicans to pass the GENIUS Act to position the U.S. ahead of global competitors like China and Europe. 

His administration supports crypto’s growth, with Trump’s own ventures, like World Liberty Financial, raising conflict-of-interest concerns among Democrats. 

The crypto industry, which spent $250 million in the 2024 election cycle, heavily backed these bills, making the failure a significant blow.

Read Also: Trump’s ‘Big, Beautiful Bill’ Hits Legal Obstacles: What’s Next for U.S. Law?

Why Did Bitcoin’s Price Fall Today?

Bitcoin fell 2.8% to $116,516 on July 16, 2025, after hitting a high of $120,481 earlier in the day. The drop followed the failed House vote, which dampened hopes for imminent regulatory clarity.

Crypto-linked stocks also took a hit, with Circle dropping 7%, Coinbase falling 4%, and MARA Holdings dipping 2%. Despite the pullback, Bitcoin’s recent surge to all-time highs near $124,000 reflects strong institutional demand and ETF inflows, suggesting market optimism persists.

Broader Market Dynamics

Analysts attribute Bitcoin’s volatility to traders adjusting positions after the legislative setback. However, rising U.S. demand and corporate accumulation continue to drive prices upward. 

The failed vote hasn’t derailed long-term confidence, as investors anticipate eventual regulatory progress.

Read Also: Senate’s Stablecoin Regulation Bill Advances to Final Vote After 68-30 Procedural Approval

What’s Next for Crypto Legislation?

House leadership, including Speaker Johnson and Majority Leader Steve Scalise, plans to hold another vote soon, possibly with amendments to address GOP concerns, like a stronger CBDC ban. 

However, reopening the legislative process risks losing bipartisan Senate support. The House aims to pass the GENIUS Act by August 2025, with the CLARITY Act targeted for September.

Senate’s Role and Ongoing Debates

The Senate, moving slower on broader crypto market structure legislation, is exploring its own framework. Sen. Cynthia Lummis hinted at a discussion draft soon, signaling continued momentum. 

However, reconciling House and Senate versions of these bills will be challenging, especially with Democratic pushback.

Conclusion

The House vote failure on July 16 stalled the GENIUS Act, exposing deep divides in Congress. Despite Bitcoin dipping, market optimism holds. 

As lawmakers regroup, the crypto world waits, will the U.S. lead in digital assets or stay stuck in gridlock?

FAQ

Why did the GENIUS Act vote fail in the House?

Internal GOP splits and Democratic opposition killed the vote. 13 Republicans broke ranks, demanding all crypto bills be bundled, especially over CBDC language.

What does the GENIUS Act actually regulate?

It sets strict rules for U.S. stablecoins, requiring reserves, AML compliance, and user protections. It could also let banks issue their own stablecoins.

How did Bitcoin react to the failed vote?

BTC dropped 2.8% to $116,516 right after the vote, dragged by market jitters and weaker confidence in near-term regulatory clarity.

What’s the CLARITY Act about?

It decides if a crypto asset is a security (SEC) or a commodity (CFTC), a big deal for defining jurisdiction and future enforcement.

Is there another vote coming?

Yes. House leaders aim to revisit the GENIUS Act by August, possibly tweaking CBDC rules to fix GOP concerns, but Senate alignment remains tricky.

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