U.S. House Rejects the GENIUS Act, Absence of CBDC Ban Becomes Key Obstacle
On July 17, during the highly anticipated 'Cryptocurrency Week,' the U.S. House of Representatives voted to reject the GENIUS Act. This outcome surprised the market, as the bill was seen as a crucial step toward clearer regulation of stablecoins. It was widely expected that the bill would pass alongside two other cryptocurrency-related bills.
The main opposition came from Republican lawmakers, particularly Congresswoman Marjorie Taylor Greene. She explicitly stated after the vote that her opposition was due to the bill's failure to include a provision banning central bank digital currencies (CBDCs).
Greene emphasized that Americans are unwilling to accept a government-controlled digital dollar, and Republicans have a responsibility to defend financial freedom and privacy. She criticized Speaker Mike Johnson for not allowing lawmakers to propose amendments to the bill.
This event highlights the divisions within the U.S. regarding cryptocurrency regulation, particularly the controversy surrounding CBDCs, which has become a key dividing line. Critics view CBDCs as a symbol of government overreach and a threat to personal financial privacy, concerns that are widely held among conservatives.
Despite the bill's failure to pass, President Trump remains optimistic, hinting on social media that there is still room for advancement. He stated that after a brief consultation with the lawmakers needed for the GENIUS Act (11 out of 12 Congress members), they all agreed to vote in favor of the rule the following morning.
Meanwhile, market data also reflects a change in risk appetite. The dominance of stablecoins in the cryptocurrency market has fallen to 7.08%, significantly down from previous highs, and has broken below key moving averages. This indicates that capital is shifting from stablecoins to more volatile assets like Bitcoin and Ethereum, which are typically seen as signals of restored market confidence and increased risk appetite.
Overall, despite the total supply of stablecoins continuing to increase, the decline in their dominance is viewed as a macro positive, suggesting that liquidity is flowing into the market, providing support for potential upward movements in the future.
What are your thoughts on the rejection of the GENIUS Act? Do you think a CBDC ban is necessary? What insights do you have regarding the current changes in risk appetite within the cryptocurrency market?
