The cryptocurrency-related bills supported by U.S. President Donald Trump did not pass the crucial procedural step in the House on Tuesday, despite his public calls to advance the legislative process.
President Trump has called on Republican lawmakers to 'complete the first vote this afternoon' on the payment stablecoin regulation bill, as part of a larger effort to pass cryptocurrency regulations before the August recess.
In a post on the Truth Social social media platform on Tuesday, Trump urged all Republican members to vote in favor of the GENIUS Act – a bill aimed at establishing a legal framework for payment stablecoins in the U.S.
CONGRATULATIONS ON CRYPTO WEEK! The House is about to VOTE on a great bill to make America the NUMBER ONE DIGITAL LEADER, UNDISPUTED in the digital asset field – No one does it better than us! The GENIUS Act will propel our Great Nation far ahead of China, Europe, and all others trying to catch up, but they can't. Digital assets are the FUTURE, and we are leading by a long shot!
Let’s complete the first vote this afternoon (ALL REPUBLICAN LAWMAKERS MUST VOTE IN FAVOR!). This is our moment – Digital assets, GENIUS, Transparency! All part of the campaign to Make America Great Again, GREATER THAN EVER. We are leading the world, and will work closely with the Senate and House to continue pushing for many other important bills!
GENIUS is one of the three important bills in the 'Crypto Week' plan of the Republican party in the House of Representatives, alongside bills related to market structure and central bank digital currency (CBDC).
However, the procedural vote to consider these three bills alongside a defense bill did not receive enough support, as at least 13 Republican lawmakers may have voted against the resolution. House Speaker Mike Johnson stated that the legislature would hold another vote 'this afternoon'.
The GENIUS bill was passed by the Senate in June with bipartisan support, despite initially facing significant opposition from the Democrats. The bill is expected to be voted on in the House before Thursday. However, at the time of writing, it is unclear whether the House will hold a separate vote on Tuesday.
Trump is suspected of a conflict of interest with his family's stablecoin.
Trump's active promotion of the stablecoin bill is facing strong criticism due to his ties with the cryptocurrency company World Liberty Financial (WLF) – a project backed by his family that has issued its own stablecoin. According to Bloomberg, Binance is reported to have supported the development of USD1, WLF's stablecoin, which has been used by an investment firm based in Abu Dhabi to disburse a $2 billion investment into Binance itself.
The office of Representative Maxine Waters (California) stated on Tuesday:
'World Liberty Financial has received most of its funding from abroad, raising serious concerns about ethics and national security. Foreign investment is not merely a business deal – it is also a direct transfer of money to the sitting president, seeking favor and influence in the White House.'
In response to the strong push from the Republican Party, many Democratic leaders have reacted by launching the 'Anti-Corruption Week in Cryptocurrency' campaign. They are calling for amendments to the three bills to enhance consumer protection and ban the president, vice president, and members of Congress from owning or promoting cryptocurrency to avoid conflicts of interest.
