House Republicans Block Crypto Bills Vote Over CBDC Ban Demand

The US House has postponed voting on three major cryptocurrency bills after Republican lawmakers withdrew support, demanding the inclusion of a central bank digital currency ban. The legislative setback occurred Tuesday when 13 Republican representatives voted against procedural measures.

Background on the Crypto Bills

House Speaker Mike Johnson announced plans to proceed with a procedural vote Wednesday, emphasizing that passing crypto legislation remains a priority for the White House, Senate, and House. The delayed bills include the GENIUS Act for stablecoin regulation, the Anti-CBDC Surveillance Act, and the CLARITY Act for crypto market structure.

Republican Opposition Details

House Majority Leader Steve Scalise joined 12 other Republican lawmakers in voting against the procedural measures. The dissenting representatives included Andrew Clyde, Tim Burchett, Andy Biggs, Eli Crane, Michael Cloud, Marjorie Taylor Greene, Andy Harris, Anna Paulina Luna, Scott Perry, Victoria Spartz, Chip Roy, and Keith Self.

CBDC Concerns Drive Opposition

The Republican holdouts expressed concerns that the GENIUS Act lacks specific prohibitions against central bank digital currencies. Representative Marjorie Taylor Greene stated she voted against the rule because it failed to include a CBDC ban and because Speaker Johnson prevented amendments to the GENIUS Act.

Representative Andy Biggs raised concerns about the GENIUS Act potentially creating a framework for layered CBDCs without guaranteeing self-custody rights. He called for an open amendment process to allow members to debate and improve the legislation.

Trump Administration Position

President Donald Trump previously included a Federal Reserve CBDC ban in a January executive order, aligning with the Republican lawmakers' demands. This executive action supports the Republican position on restricting CBDC development.

Procedural Challenges

Speaker Johnson reportedly indicated that combining the three crypto bills into one package could prevent Senate passage. He emphasized the need to pass the bills in succession rather than bundling them together, despite pressure from Republican holdouts.

Congressional Timeline

The legislative push represents the Republican-led "Crypto Week" initiative aimed at enacting crypto laws before Congress begins its month-long August recess. Democrats have countered with an "anti-crypto corruption week" to oppose the proposed legislation.

Previous Legislative History

The GENIUS Act previously passed through the Senate in June with bipartisan support, though it initially failed a cloture vote in May due to Democratic opposition. Industry observers note that procedural setbacks are common in the legislative process.

Industry Reactions

Custodia Bank founder Caitlin Long reassured stakeholders that the initial failure should not cause concern, noting that the GENIUS Act also failed its first Senate procedural vote before passing 11 days later.

Crypto podcast host Eleanor Terrett pointed out that the GENIUS Act already contains provisions prohibiting the Federal Reserve from creating retail CBDCs, suggesting the Republican concerns may be addressed in existing language.

Next Steps

The House is scheduled to reconvene Wednesday for morning hour debate and additional legislative business. Speaker Johnson continues discussions with Republican holdouts to advance the cryptocurrency legislation package.

The outcome of Wednesday's proceedings will determine whether the crypto bills can proceed or face further delays as lawmakers work to address CBDC ban concerns and procedural requirements.