House Conservatives Block Crypto Bills in Major Procedural Revolt
House Republicans Face Setback on Cryptocurrency Legislation
Procedural Vote Fails Amid Internal GOP Disagreements
A group of twelve hardline Republicans in the House of Representatives disrupted a procedural vote on Tuesday, raising concerns about upcoming cryptocurrency legislation. This unexpected move halted proceedings and posed a challenge for Speaker Mike Johnson (R-La.) and the party leadership.
The procedural vote, which is essential for debating legislation, resulted in a disappointing 196-223 outcome, failing to secure the necessary majority. This setback prevented the House from discussing and voting on critical funding for the Pentagon for the fiscal year 2026, as well as three significant cryptocurrency bills.
Key Republican Defectors
Among those who voted against the measure were notable Republicans such as Ann Paulina Luna (Fla.), Scott Perry (Pa.), and Marjorie Taylor Greene (Ga.). House Majority Leader Steve Scalise (R-La.) also switched his vote to “no” strategically, allowing for a potential re-vote on the issue later.
Speaker Johnson explained that the dissenting members aimed to consolidate the cryptocurrency bills into a single package, which led to the procedural vote’s failure. This week, the House is set to consider the GENIUS Act, which establishes a regulatory framework for stablecoins, alongside the Digital Asset Market Clarity Act of 2025 and the Anti-CBDC Surveillance State Act.
Seeking Consensus on Cryptocurrency Bills
Johnson noted that some members are eager to merge the House’s proposed legislation with the Senate’s offerings. He emphasized the importance of collaboration with the White House and Senate partners to ensure all three bills are addressed.
Scalise has proposed revisiting the procedural rule at a later date, and Johnson indicated that another vote would occur once there is a consensus within the GOP conference. He acknowledged the urgency of the situation, stating, “Time’s of the essence.”
Urgency for Legislative Action
House Republicans are under pressure to resolve the impasse quickly, as the Senate is poised to approve a bill that would reclaim $9.4 billion in federal funding. The House must finalize its approval before the impending Friday deadline.
Following the Senate’s passage of the GENIUS Act last month, former President Trump urged the House to expedite the approval of a straightforward stablecoin bill, complicating efforts to merge it with broader cryptocurrency legislation.
Legislative Strategy Moving Forward
Some House members had hoped to link the Senate’s GENIUS Act with the House’s CLARITY Act to ensure the lower chamber’s influence on cryptocurrency regulation. However, leadership has acknowledged that a formal tie between the two bills is unlikely. Instead, they plan to advance the stablecoin and market structure legislation concurrently, along with the anti-CBDC measure.
Initially, the White House and GOP leaders aimed to pass both bills before Congress’s August recess. They are now focused on finalizing the GENIUS Act by the original August deadline, with plans to address the market structure bill by the end of September.
Senate’s Progress on Cryptocurrency Regulation
The Senate has been slower to advance cryptocurrency market structure legislation, which aims to clarify regulatory oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. However, the upper chamber is preparing to move forward with its second key crypto bill, with hearings scheduled by both the Senate Banking and Agriculture committees. Senator Cynthia Lummis (R-Wyo.) has indicated that a discussion draft of the measure could be released soon.
Updated at 3:21 p.m.
Contributions by Aris Folley and Julia Shapero.
