Even Republicans Vote Against... Procedural Vote Fails
Hopes for Institutionalization Diminish
Bitcoin Falls to the $116,000 Range
Shares of Related Companies Also Decline Across the Board
The cryptocurrency-related bill promoted by U.S. President Donald Trump failed to clear its first procedural vote in the House of Representatives, falling short of entering the review stage. The price of Bitcoin dropped to the $116,000 range as disappointment over the failed vote combined with profit-taking, and stocks of related companies also declined across the board. However, the Republican leadership has stated its intention to push for a revote soon, so the possibility of legislation remains.
According to CNBC and Reuters on July 15 (local time), the U.S. House of Representatives rejected a procedural floor vote to begin deliberations on three cryptocurrency bills by a vote of 196 to 222. A procedural vote is a preliminary step to establish the rules for formally considering a bill. Only after passing this stage can the bill be reviewed and put to a vote.
The House had designated this week as "crypto week" and planned to address three major cryptocurrency bills. The three bills are the "Genius Act" (institutionalizing stablecoins), the "Clarity Act" (overhauling cryptocurrency market jurisdiction), and the "CBDC Anti-Surveillance State Act" (protecting consumer financial privacy).
However, the bill failed to pass even the procedural vote required to begin formal discussions, as not only Democrats but also some Republicans defected. Several Republican lawmakers voted against the package, opposing the approach of handling the three cryptocurrency bills as a single package alongside Democrats. According to Politico, a total of 13 Republican lawmakers voted against the measure.
Before the vote, President Donald Trump called for party unity on his social media platform, Truth Social, stating, "Make sure the first vote passes this afternoon. Every Republican must vote yes!" CNBC reported, "The bill was widely expected to pass. Despite President Trump's directive, the defection of House Republicans has drawn attention."
However, the prospect of passing the bill is not entirely lost. On the same day, House Speaker Mike Johnson, a Republican, said, "We will continue discussions with lawmakers," and added, "I hope we can bring it to a vote again soon." Barron's, an investment publication, reported that Republican Majority Leader Steve Scalise also expressed his intention to bring the bill to a vote again soon, predicting that a revote could take place within the next few days.
However, for a revote to proceed, internal negotiations must first be held regarding whether to include a CBDC ban provision and how to merge the bills. The schedule for the vote will be determined based on the outcome of these discussions. Hardline conservatives within the Republican Party argue that if a CBDC is introduced, the government could excessively control the financial activities of American citizens. They have stated they cannot support a vote on the Genius Act unless a complete ban on CBDCs is included. The CBDC ban bill has not yet been discussed in the Senate. The Federal Reserve has also not announced any concrete plans to officially pursue a CBDC at this time.
News of the failed vote caused the price of Bitcoin to plummet. According to CoinMarketCap, at 8:37 p.m. Eastern Time, Bitcoin fell to $116,516. The previous day, Bitcoin had surged to $123,000, setting a new all-time high. The sharp decline is attributed not only to the failed vote but also to a wave of profit-taking after the record high, which significantly dampened investor sentiment. The Economic Times explained, "Market analysts cited profit-taking and a correction following short-term overheating as the causes of the decline."
As the bill failed to clear the House, stocks of cryptocurrency-related companies also fell across the board. Circle shares plunged 4.58%, while Coinbase closed down 1.52%. Bitcoin mining companies Riot Platforms and Mara Holdings dropped 3.28% and 2.3%, respectively. These stocks also faced additional downward pressure in after-hours trading.
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