US House Stalls Key Crypto Bills Over CBDC and GENIUS Act Concerns

A recent procedural impasse brought legislative activity to a standstill in the U.S. House of Representatives, highlighting a significant internal political challenge to the advancement of digital asset legislation. This unexpected gridlock occurred when a coalition of Republican lawmakers, joining Democrats, voted down a crucial procedural measure, disrupting the planned agenda that included key cryptocurrency bills and vital appropriations.

• A procedural vote in the U.S. House of Representatives failed, halting legislative progress on key bills.
• The setback directly impacted the consideration of the Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 (GENIUS Act of 2025) and other cryptocurrency proposals.
• Dissenting lawmakers, primarily Republicans, cited concerns over Central Bank Digital Currencies (CBDCs) and the Senate’s redrafting of the GENIUS Act.
• Former President Donald Trump publicly endorsed the cryptocurrency bills, advocating for U.S. leadership in digital assets.
• The use of a “rule” vote as a protest mechanism by factions within the House GOP underscored deep-seated policy disagreements.

Legislative Stalemate and Its Immediate Repercussions

This legislative setback directly impacted the House’s immediate plans to consider three separate cryptocurrency proposals, notably the Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 (GENIUS Act of 2025), alongside a critical defense appropriations bill. The procedural vote’s failure signals deep-seated concerns among certain Republican factions regarding both the evolving landscape of digital asset regulation and the dynamics of inter-chamber legislative cooperation.

Catalysts for Dissent: CBDC Concerns and Inter-Chamber Tensions

A primary catalyst for the widespread dissent appears to be anxieties surrounding the GENIUS Act. Some lawmakers expressed apprehension over how the Senate had re-drafted the bill, particularly its implications for Central Bank Digital Currencies (CBDCs). Concerns were articulated by Rep. Marjorie Taylor Greene, R-Ga., who stated on X that the bill as currently written “lays the groundwork for a layered Central Bank Digital Currency (CBDC) where Americans interact with stablecoins but behind the scenes there are the functional surveillance capabilities of a CBDC.” She further highlighted that the bill “does not expressly ban a CBDC and does not protect self-custody,” a crucial tenet for digital asset proponents.

Beyond the CBDC issue, some dissenting Republicans also voiced fears that the Senate might not engage with other House-passed cryptocurrency initiatives, such as the Digital Asset Market Clarity Act of 2025 (CLARITY Act), if the GENIUS Act proceeded independently. This reflects a broader frustration within the House regarding past legislative compromises, where the upper chamber’s revisions have often been perceived as overriding the House’s original intent, leading to a diminished impact of House-originated legislation.

Political Endorsement and Tactical Maneuvers

Adding a layer of complexity to the situation, President Donald Trump publicly encouraged House Republicans to support the cryptocurrency bills. On Truth Social, he advocated for the GENIUS Act, positioning it as a critical step to establish the United States as the “UNDISPUTED, NUMBER ONE LEADER in Digital Assets,” surpassing nations like China and European competitors. His endorsement underscored the strategic importance of digital asset leadership as a national priority, injecting a high-profile political dimension into the legislative debate.

The use of a “rule” vote—typically a party-line procedural matter—as a mechanism for protest has become a more frequent tactic for factions within the House GOP. Rep. Chip Roy, R-Texas, articulated specific objections, noting concerns with the Senate’s version of the GENIUS Act potentially leaving “room for some concern with respect to the central bank digital currency and that there not be a hard ban on that.” Similarly, House Freedom Caucus Chair Andy Harris, R-Md., indicated that the legislative stalemate would persist “unless they’re willing to kill central bank digital currency.” Speaker Mike Johnson, R-La., acknowledged the ongoing discord, stating that discussions and clarifications were continuing in an effort to resolve the impasse and proceed with the vote, indicating an active engagement to bridge these internal divides.