GENIUS Act Halted by House GOP Rebellion Amidst Crypto Week

The GENIUS Act, a major tech bill focused on innovation and crypto regulation, just hit a wall in the U.S. House. On July 15, the vote was unexpectedly delayed after a group of House Republicans pulled their support. It was a surprising twist, especially since the bill had strong bipartisan backing and was expected to pass easily during what many were calling “Crypto Week” on Capitol Hill.

We were all watching closely. The GENIUS Act was meant to give America an edge in tech innovation, especially in blockchain and Web3. But rather than advancing, the bill came to a sudden halt.

So, what went wrong? What impact could this have on the future of cryptocurrency in the U.S.?

Let’s break it down, together.

What Is the GENIUS Act?

The GENIUS Act stands for the initiative aimed at promoting national innovation across the United States. Stablecoins legislation. The Senate approved it on June 17 with strong backing, by a vote of 68 to 30.
It aims to set clear rules for stablecoin issuers: full reserve backing, monthly audits, and consumer protections like backup for funds if an issuer goes bankrupt.
Issuers would include banks, federally regulated nonbanks, and state‑approved companies. If they hold over $10 billion in circulation, they’d face stricter oversight.

The Crypto Week Build-Up

House Republicans labeled mid‑July as “Crypto Week”.They planned to vote not only on the GENIUS Act, but also on bills about market rules and banning a central bank digital currency (CBDC).
Trump threw his support behind the bills, urging lawmakers to back them as a step toward making the U.S. a global leader in digital assets.

The GOP Rebellion in the House

Despite Trump and Speaker Mike Johnson pushing hard, 13 Republicans joined Democrats to block the procedural vote 196-223. They believed the bills should be combined and sent back to the Senate. They also called for stricter limits on CBDCs and the opportunity to introduce changes to the legislation. Among the rebels was Rep. Marjorie Taylor Greene, who cited concerns about hidden CBDC backing.

Political Fallout

Trump later met with holdout lawmakers, saying 11 of 12 had agreed to support the Rule the next day. Speaker Johnson postponed the vote, saying it was a routine step in the legislative process. Democrats took the opportunity to connect the crypto delays with past transparency battles from the Trump era, including the unsuccessful attempt to release DOJ files related to Epstein.

Impact on the Crypto Industry

Markets reacted fast. Shares of Circle Internet, a stablecoin issuer, dropped nearly 5 %.
Other crypto stocks like Coinbase, MicroStrategy, and MARA slid too, and Bitcoin dipped about 3 %.
Weaker prices reflect crypto firms’ need for clear rules. The lack of progress could push startups offshore or slow growth in DeFi and Web3.

What Happens Next?

Leaders say they’ll retry the vote, likely on Wednesday, with negotiations on packaging the bills. Trump and GOP leaders want a standalone GENIUS Act to clear the House before the August recess. Meanwhile, industry groups and PACs, like Fairshake, which raised $140 million for 2026 races, are already prepping, hoping this drama boosts or hurts candidates.

Conclusion

The House GOP revolt shows just how fragile crypto legislation can be, even after Senate approval and presidential backing. Blocking the GENIUS Act stalls stablecoin regulation and delays clarity. It also reveals deeper GOP divisions and ongoing tension over digital asset policy. We’re still in the early stages. How lawmakers resolve these internal fights could shape how the U.S. stays competitive in blockchain innovation, or falls behind.

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This content is for informational purposes only and not financial advice. Always conduct your research.