The U.S. Congress is preparing to make a second attempt at voting on important cryptocurrency legislation after the first attempt ended in failure.
Reasons for The Initial Vote Failure
The vote failed with a result of 196-222, which came as a surprise during what was termed "Crypto Week" on Capitol Hill. Internal divisions among Republicans and opposition from Democrats, who expressed concerns over consumer protections, contributed to the unsuccessful outcome.
Key Cryptocurrency Bills
The proposed legislative package includes:
- **GENIUS Act** — a bill aimed at regulating stablecoins; - **CLARITY Act** — a bill that seeks to establish rules to determine whether cryptocurrencies will be considered securities or commodities; - **Anti-CBDC Surveillance State Act** — a bill that would prohibit the issuance of a U.S. central bank digital currency.
Market Reaction to Failed Voting
Following the vote failure, Bitcoin dropped below $117,000 while shares of Coinbase and Circle fell by over 4% and 7%, respectively. Market participants had been closely monitoring the House vote, especially hoping that at least the stablecoin bill would advance.
The failure of the initial vote on cryptocurrency bills in Congress highlights existing internal divisions and the need for bipartisan support for the legislative package to move forward.
