House Republicans failed to clear a procedural vote Tuesday that would have advanced three major crypto bills, freezing what the White House had branded “Crypto Week.” The final tally was 196 to 223. Thirteen GOP members broke ranks and joined Democrats to block the motion. That vote halted progress on the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance Act. The setback triggered immediate fallout across crypto-linked equities. Robinhood, SoFi, and Coinbase all dropped sharply in extended trading. Bitcoin fell from $120,446 to $116,871 within hours. Ethereum dipped below $3,100 before recovering.
The procedural vote was not just about crypto. It was tied to a broader defense funding package and a proposed amendment to release Epstein-related documents. Speaker Mike Johnson said the rebellion stemmed from hardliners demanding the bills be merged into a single package. Reps. Marjorie Taylor Greene and Anna Paulina Luna led the opposition, citing concerns about a backdoor to a central bank digital currency. Greene posted, “Americans do not want a government-controlled Central Bank Digital Currency. Republicans have a duty to ban CBDC.”
President Trump had urged Republicans to vote yes. He called the GENIUS Act “a leap ahead of China and Europe” and said digital assets are “the future.” Trump launched his own crypto meme coin earlier this year and has since backed a bitcoin mining firm and a stablecoin issuer. After the vote failed, he summoned 11 of the 12 dissenting Republicans to the Oval Office. By Wednesday morning, all had flipped. Speaker Johnson confirmed a new vote is scheduled. The bills are expected to pass.
The market reaction was swift. Bitcoin dropped 5% in 24 hours. A merchant who accepted $123,000 in bitcoin Tuesday found himself short $8,000 by Wednesday morning. That’s the problem. Volatility kills utility. Crypto doesn’t work as a medium of exchange when the value swings 6% overnight. Stablecoins were supposed to fix that. The GENIUS Act would regulate them.
A merchant accepted $123K worth of bitcoin yesterday. Before he can pay his vendors today, it dropped to $115K.
The merchant is short the money he needs to pay.
It isn’t complicated to understand, why bitcoin doesn’t work as medium of exchange.
— Keith Weiner (@RealKeithWeiner) July 15, 2025
The broader crypto market shed $42 billion in value Tuesday. The fear and greed index still shows “Greed,” but sentiment is fragile. Ethereum recovered to $3,170. Bitcoin bounced to $118,727. Traders are watching the House floor. If the bills pass, expect a short-term rally. If they stall again, the selloff resumes.
Sources:
https://cryptobriefing.com/house-republicans-block-crypto-bills-procedural-vote/
https://www.thestreet.com/crypto/policy/crypto-week-collapses-as-house-gop-fails-key-vote
