House Republican Faction Pushes Through Significant Cryptocurrency Legislation Following a Lengthy Nine-Hour Pause in Voting
In a significant move, the U.S. House of Representatives has progressed a trio of cryptocurrency bills, including the CLARITY Act and the GENIUS Act, following a record-breaking nine-hour vote that ended with a final tally of 217-212[1][2]. This development comes after a prolonged internal standoff within the Republican Party, which was resolved through a compromise that saw the addition of anti-CBDC language to the National Defense Authorization Act (NDAA).
The CLARITY Act, a bill aimed at clarifying the regulatory framework for digital commodities like Bitcoin, divides oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)[3]. On the other hand, the GENIUS Act is designed to regulate stablecoins by establishing reserve requirements, although it does not explicitly ban Central Bank Digital Currencies (CBDCs), a point of contention among some Republican members[2][3].
The internal Republican standoff centered on concerns among conservative members that the GENIUS Act might inadvertently allow for the creation of a CBDC due to vague language. This resistance led to a procedural impasse that required intervention from Republican leaders and President Trump to resolve[1][2]. The standoff was resolved by agreeing to attach a measure banning CBDCs to the NDAA, a must-pass defense spending bill[1][4]. This move allowed the CLARITY and GENIUS Acts to proceed without changes that might have jeopardized their passage[1][4].
As the bills move forward, further action is needed for them to become law. Speaker Mike Johnson has indicated that votes on these bills might be delayed until later in the week or even into the next week[4]. Meanwhile, some lawmakers may push for CBDC changes in future amendments to the NDAA.
Sources: [1] The Hill, "House advances crypto bills after nine-hour standoff," 25 July 2021,
- The cryptocurrency industry experienced a significant shift with the U.S. House of Representatives progressing the CLARITY and GENIUS Acts, moving steps closer to clarifying digital commodity regulations and stablecoin oversight, potentially impacting finance and investing in the business world.
- The blockchain sector witnessed political tension within the Republican Party, resulting in a compromise that added anti-Central Bank Digital Currency (CBDC) language to the National Defense Authorization Act (NDAA), a potential general-news headline.
- The crypto community is closely monitoring the status of these bills, as Speaker Mike Johnson has suggested that votes may be delayed, potentially influencing the future regulatory environment for digital assets in the finance and business industries.
- The evolution of cryptocurrency legislation may face ongoing challenges, as some lawmakers consider pushing for Central Bank Digital Currency changes in future amendments to the National Defense Authorization Act.
