GENIUS Act Vote Misses GOP Unity: Trump Says Defectors Will Vote

Arry Hashemi

Jul. 16, 2025

The U.S. House of Representatives faced a significant setback on Tuesday during its much-anticipated "Crypto Week," as a procedural vote to advance three cryptocurrency-related bills, including the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, failed to pass. The vote, which ended 196-223, exposed divisions within the Republican Party and halted progress on legislation backed by President Donald Trump, who had urged immediate action to position the U.S. as a global leader in digital assets.

13 Republicans, primarily from the House Freedom Caucus, joined Democrats in opposing the procedural motion. (Shutterstock)

The GENIUS Act, which passed the Senate in June with bipartisan support, aims to establish a regulatory framework for stablecoins, requiring issuers to fully back tokens with U.S. dollars or liquid assets, mandate annual audits for issuers with market capitalizations exceeding $50 billion, and set guidelines for foreign issuance. Alongside it, the Digital Asset Market Clarity (CLARITY) Act and the Anti-CBDC Surveillance Act were also part of the legislative package, intended to provide clarity for digital asset markets and address concerns about central bank digital currencies (CBDCs).

President Trump, a vocal supporter of the bills, took to his Truth Social platform on Tuesday, urging all Republicans to vote in favor of the GENIUS Act, stating it would keep the U.S. "lightyears ahead" of China and Europe in digital asset regulation. Despite his directive, 13 Republicans, primarily from the House Freedom Caucus, joined Democrats in opposing the procedural motion, which was needed to set the terms for floor debate. The rebellion, led by figures like Rep. Marjorie Taylor Greene (R-Ga.) and House Freedom Caucus Chair Rep. Andy Harris (R-Md.), centered on concerns that the GENIUS Act lacked a firm ban on CBDCs, which they view as a potential threat to financial privacy and autonomy.

Greene, in a post on X, criticized House Speaker Mike Johnson for not allowing amendments to the GENIUS Act and highlighted its failure to include a CBDC prohibition, referencing Trump’s January 23rd executive order calling for such a ban. Harris echoed this sentiment, telling reporters he wanted to "drive a stake into the heart" of any potential government-backed digital dollar. The Freedom Caucus also expressed frustration with the Senate’s influence on the bill’s language and demanded that the three crypto bills be combined into a single package to ensure comprehensive action, a move that could delay passage by requiring renewed Senate approval.

Late Tuesday evening, Trump announced on social media that he had met with 11 of the 12 dissenting Republican lawmakers in the Oval Office, securing their commitment to support the procedural vote on Wednesday morning. “After a short discussion, they have all agreed to vote in favor of the Rule,” Trump posted, signaling a potential resolution to the impasse.

Democrats, meanwhile, raised concerns about the bills’ implications. Rep. Maxine Waters (D-Calif.) warned that the legislation could enable conflicts of interest, particularly given the Trump family’s involvement in crypto ventures like TRUMP and MELANIA meme coins and World Liberty Financial. Waters proposed amendments to bar the president, vice president, and members of Congress from promoting or holding crypto assets, citing risks of fraud and national security concerns from foreign-controlled stablecoins.

The stalled vote has cast uncertainty over Crypto Week, with analysts noting that combining the bills could complicate their path through the Senate, potentially missing Trump’s August deadline for enactment. Despite the hiccup, industry leaders remain hopeful, with Carbone arguing that passing the GENIUS Act would allow the private stablecoin market to flourish, countering the need for a CBDC. As the House prepares for a possible second vote, the outcome will test the GOP’s ability to unify behind Trump’s pro-crypto agenda and shape the future of U.S. digital asset regulation.