House Rejects Crypto Bills 196-222
**Regulatory Freeze, Not Thaw**
By sinking the rule vote, the House has pushed any federal crypto statute well past the summer. The Senate’s GENIUS Act—already facing a **new Democratic revolt** over AML, national-security and consumer-protection language —now has no House companion to reconcile with, so momentum stalls. **Result**: months of continued **regulatory fragmentation**; firms must still navigate conflicting SEC, CFTC and state blueprints .
**Market Implications**
- **Stablecoin issuers** (Circle, Tether) lose the certainty needed for bank partnerships and Treasury-backstop plans; premium for off-shore dollar-pegged coins may widen.
- **Tax-revenue risk**: Treasury’s delayed crypto-broker reporting rule already jeopardises “billions” in collections; the legislative void keeps the loophole open .
- **Volatility & Scams**: With no new guardrails, a **Wild-West perception** persists; retail investors face heightened fraud risk and exchanges could see outflows if hacks spike .
**Geopolitical Angle**
Without a U.S. framework, dollar-linked stablecoins cede ground to **foreign digital-currency initiatives**—including potential euro or yuan-pegged coins—eroding USD dominance in global payments .
