Crypto bill setback in House of Representatives delays legislation, sends Bitcoin price tumbling
&imwidth=600&imheight=450&format=webp&quality=medium "Crypto bill setback in House of Representatives delays legislation, sends Bitcoin price tumbling")
Representations of cryptocurrency Bitcoin are seen in this illustration taken November 25, 2024. Photograph: (Reuters)
The sharp decline came after a pivotal procedural vote, where 13 Republican lawmakers joined Democrats to block the motion, voting 196-223 against advancing the legislation.
Bitcoin saw a sharp decline on July 15, falling below the $117,000 mark after a procedural vote to advance key cryptocurrency bills was blocked in the House of Representatives. The price of Bitcoin dropped 2.8 per cent to $116,516, reversing earlier gains and marking a pullback from the day’s high of $120,481.86, according to Coin Metrics.
The sharp decline came after a pivotal procedural vote, where 13 Republican lawmakers joined Democrats to block the motion, voting 196-223 against advancing the legislation. The bills, which had been anticipated to bring much-needed regulatory clarity to the crypto industry, were viewed as a potential catalyst for the continued rise in institutional investments, particularly in Bitcoin exchange-traded funds (ETFs).
Stocks linked to the cryptocurrency sector also saw declines. Riot Platforms and Mara Holdings, both major Bitcoin miners, closed down 3.3 per cent and 2.3 per cent, respectively. Similarly, Coinbase, a major cryptocurrency exchange, slid 1.5 per cent in late trading hours. These declines followed the failed procedural vote, which delayed the progress of crucial crypto-related legislation.
Trump seeks to revive crypto bills after setback
However, the fate of the legislation took a sudden turn later on July 15 evening when former President Donald Trump intervened. In a post on Truth Social, Trump announced that a group of 11 Republican lawmakers who had originally voted to block the bills had changed their stance following a meeting at the White House. According to Trump, the lawmakers agreed to vote in favour of advancing the crypto bills in a vote scheduled for July 16.
“I am in the Oval Office with 11 of the 12 congressmen/women necessary to pass the GENIUS Act, and, after a short discussion, they have all agreed to vote tomorrow morning in favour of the rule,” Trump wrote.
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The bills in question include the GENIUS Act, which seeks to regulate stablecoins, and the CLARITY Act, which would clarify whether digital assets should be classified as securities or commodities. A third bill aims to block the Federal Reserve from creating a central bank digital currency.
House Speaker Mike Johnson expressed hope that the legislation could still move forward after additional discussions with members. “We are continuing to work on this issue and plan to vote on it again shortly,” he said after the vote.
Crypto bill blockade undermines optimism
The procedural block in the House was a major setback for the crypto industry, which had viewed Crypto Week as a key opportunity for Congress to pass legislation providing much-needed clarity and legitimacy. The failure of the vote marked an unexpected challenge for the crypto bills, which had previously seemed poised for swift passage. It also highlighted a rare instance where House Republicans resisted Trump’s influence, at least temporarily.
The defeat was especially significant because it took place during a week when optimism had been building in the market, spurred by expectations that Congress might soon pass crypto-related legislation. Institutional investors had been piling into Bitcoin, pushing its price to all-time highs. Many saw the legislation as a potential catalyst for further growth in the digital asset space.
Bitcoin bounces back after initial losses
Despite the setback in Washington, Bitcoin and other cryptocurrencies showed signs of recovery early Wednesday. Bitcoin rebounded more than 1 per cent over the past 24 hours to $118,809, according to CoinDesk data, after briefly dropping following the procedural vote.
This recovery came after Trump’s statement that the legislation, which includes the GENIUS Act and other crypto regulatory measures, could be passed as soon as July 16. The quick reversal in Bitcoin’s price underscores the market’s sensitivity to developments in US cryptocurrency policy and investor confidence in future regulatory clarity.
(With inputs from agencies)