As it sped into Crypto Week on Tuesday, the U.S. House’s process toward passing digital assets bills ground to a sudden halt over a procedural vote as members of the House Freedom Caucus objected to the way some of the legislation has developed under Senate dominance.
The misfire on the procedural vote quickly slammed the crypto markets over uncertainty about the good news expected this week as the House has moved toward passage of two of the industry’s top priorities. The legislation still has strong, bipartisan support, suggesting the procedural mishap may be overcome as a further vote was scheduled for later Tuesday afternoon. More than a dozen Republicans joined Democrats in voting against the motion.
Two people familiar with the matter told CoinDesk another vote has been aimed for 5:00 p.m. ET, meaning this disruption could be resolved without delaying the more important votes currently expected on Wednesday and Thursday.
U.S. President Donald Trump urged Republicans to vote in favor of the rule earlier Tuesday in a post on Truth Social, saying passing GENIUS would help keep the U.S. ahead of other countries in crypto development.
Bitcoin (BTC) and ether (ETH) each knee-jerked lower by about 0.5% on the news, but both have recovered most of those declines. High-flying stablecoin issuer Circle (CRCL) has moved to its session low, down 5.3% on the day. The stock remains higher by roughly six-fold since its IPO last month.
Procedural disruptions can be the norm in the legislative process. As the GENIUS Act headed toward passage in the Senate, a group of Democrats slammed the breaks to object to certain provisions and force more discussion. It’s uncertain whether a similar delay could be forced by unhappy Republicans on this week’s bills.