Main Points:
- Senate Bipartisan Approval: The GENIUS Act, aimed at regulating payment stablecoins, passed the Senate on June 17, 2025, by a 68–30 vote.
- House Procedural Defeat: On July 15, 2025, the House failed to advance the “crypto week” package—196 Republicans voted against proceeding, demanding a strict CBDC ban.
- Trump’s Oval Office Intervention: President Trump met with 11 of the 12 dissenting GOP lawmakers on July 16 and secured their commitment to support the GENIUS Act on the next day’s procedural vote.
- Market Reaction: Shares of Circle Internet sank nearly 5% after the House vote failure, reflecting industry anxiety over regulatory delays.
- Broader Legislative Impact: The stalemate also delayed consideration of the CLARITY Act and a $9.4 billion defense appropriations package, highlighting high-stakes intra-party negotiations.
Senate Passage and the Promise of Stablecoin Regulation
The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins Act) sailed through the Senate on June 17, 2025, by a comfortable 68–30 margin. Authored by Senator Bill Hagerty (R–TN), it establishes stringent reserve, audit, and transparency standards for stablecoin issuers, and proposes a dual federal–state supervisory framework to safeguard financial stability and consumer protection. This bipartisan victory was hailed as a milestone for U.S. leadership in digital assets, signaling regulatory clarity for market participants.
House “Crypto Week” Derails Amid CBDC Dispute
Anticipated as “crypto week,” the July 15 session in the House was set to advance three crypto bills:
- GENIUS Act – stablecoin regulation
- Anti-CBDC Surveillance Act – ban on central bank digital currencies
- CLARITY Act – market structure reforms for digital assets
However, 13 conservative Republicans, including Reps. Marjorie Taylor Greene and Chip Roy, joined Democrats to vote down the procedural motion (Rule Vote) by 196–223, citing the absence of a “strict” CBDC ban in the GENIUS Act. They demanded either separate consideration of a CBDC ban or bundling the bills into a single package—moves that would force Senate reconsideration and delay implementation.
President Trump’s Oval Office Strategy
Reacting swiftly, President Trump convened 11 of the dissenting lawmakers in the Oval Office on July 16. After a “short discussion,” all attendees agreed to support the House procedural motion the following morning. Speaker Mike Johnson, who had spoken by phone, endorsed the expedited timetable. Trump framed the bill as part of his “MAGA” (Make America Great Again) agenda to secure American leadership in digital finance.
Timeline of Key GENIUS Act Events
Below is a graphical timeline summarizing the legislation’s recent milestones:
Market Ripples and Industry Stakes
The abrupt procedural defeat rattled markets. Shares of Circle Internet, a major stablecoin issuer, plunged nearly 5% amid fears of regulatory uncertainty. Industry stakeholders had banked on rapid enactment to fuel stablecoin issuance and broader blockchain adoption. The so-called “anti-crypto corruption week” launched by Democrats underscored partisan tensions over crypto reforms.
Broader Implications: Defense Funding and Beyond
The revolt did more than stall crypto regulation. It also delayed the National Defense Authorization Act for Fiscal Year 2026 ($9.4 billion in cuts) and an urgent government spending package. With Congress facing an August recess, the GOP leadership must navigate internal divisions to address both digital asset frameworks and critical appropriations before deadline pressures mount.
Looking Ahead: Re-Vote and Potential Outcomes
The House is slated to reconvene on July 17, 2025, for a re-vote on the procedural motion. Should the GOP majority hold, the individual bills would advance separately, as Trump and Johnson intend. Industry analysts point out that a prior Senate procedural vote on the GENIUS Act also initially failed before succeeding second time—a precedent that tempers concerns about final passage. Observers also note the midterm stakes for 2026, as crypto PACs mobilize funding to back pro-crypto candidates.
Conclusion
The GENIUS Act’s journey reflects the fraught intersection of cryptocurrency innovation and partisan politics. While the Senate’s bipartisan support showcased industry demand for clear stablecoin regulations, Republican hard-line objections in the House nearly derailed the effort. President Trump’s direct intervention illustrates high-level commitment to crypto leadership, yet underscores internal divisions over CBDC policy. As the House prepares to revisit the motion on July 17, market participants and policymakers alike await whether U.S. digital asset regulation can overcome procedural hurdles and set a definitive framework for stablecoin issuance. With defense spending, broader crypto reforms, and the looming 2026 midterms in play, the outcome will resonate far beyond the blockchain sector—shaping America’s financial innovation frontier for years to come.
