First Crypto Bill Vote Fails as Some Republicans Break from Trump
Crypto bill backed by Republicans has failed in its first vote after some GOP members went against former President Trump’s stance.
The first major crypto bill backed by U.S. President Donald Trump failed to advance in the House of Representatives after a key procedural vote fell short due to opposition from within the Republican Party.
Crypto Bill Vote Fails as Republicans Split
Despite Trump’s push for quick action, including a direct call on Truth Social urging Republicans to support the legislation, at least 13 Republican members broke ranks and voted against the resolution.
The loss shows that not all Republicans agree on handling crypto rules, despite Trump’s push to support the industry. The result raises questions about the party’s unity on tech issues.
The bill in question is the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which aims to regulate payment stablecoins and was part of a broader crypto legislative package.
The vote was meant to set the stage for the House to debate three crypto-related bills, including those addressing market structure and central bank digital currencies, as well as a defense spending bill. However, the resolution failed to pass, halting progress on the package.
The Speaker of the House, Mike Johnson, said the chamber might attempt another vote that same afternoon.While the GENIUS Act passed the Senate in June with bipartisan support, its path in the House remains uncertain.
A full floor vote on the bill could still take place by Thursday, but as of now, the House had not confirmed its schedule.
Trump’s Crypto Ties Raise Conflict of Interest Concerns
President Donald Trump is facing scrutiny over his support for stablecoin legislation, as questions emerge about his ties to a family-backed crypto firm, World Liberty Financial (WLF). The company has issued its own stablecoin, USD1, raising concerns of a potential conflict of interest.
According to Bloomberg, Binance played a role in creating the USD1 stablecoin, which was also used by an investment firm based in Abu Dhabi to settle a $2 billion investment into the crypto exchange.
The revelations have fueled ethical and national security concerns, especially due to significant foreign funding tied to WLF.
California Representative Maxine Waters stated that foreign investment is more than just a business deal and amounts to a direct payment to the sitting US president, intended to gain favor and influence within the White House.
In response to the growing controversy, Democratic lawmakers have launched what they are calling an “anti-crypto corruption week,” demanding stronger amendments to the pending crypto bills.
Their focus includes consumer protection measures and bans preventing the president, vice president, and members of Congress from holding or promoting digital assets.
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