Crypto Week Falters: Trump’s Stablecoin Push Stalls as GOP House Members Break Ranks

The House of Representatives failed to pass a procedural rule to advance three major crypto-related bills, including the high-profile GENIUS Act, a bill aimed at regulating payment stablecoins. The move temporarily derailed GOP leadership’s ambitious plan to solidify America’s crypto policy framework before the August recess.

Trump, who has increasingly tied his political brand to the crypto industry, took to his social media platform Truth Social Tuesday morning, directing Republicans to “get the first vote done this afternoon.” The message was unmistakable: pass the rule, move the bills, and make crypto great again.

Get the vote done, Said Trump, Source: Trump

But the MAGA king’s sway wasn’t enough. Thirteen House Republicans broke with party leadership, siding with Democrats to tank the procedural vote, a necessary step before any legislation can be debated or amended. 

The defeat sent a shudder through digital asset markets, with Bitcoin (BTC) and Ethereum (ETH) dipping roughly 0.5% on the news before stabilizing.

Bitcoin dropped slightly before holding steady, Source: Bitcoin Liquid Index

The legislative package, dubbed “Crypto Week” by GOP leaders, includes bills focused on market structure, stablecoin regulation, and a preemptive framework around central bank digital currencies (CBDCs). The stablecoin bill, formally the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, has already cleared the Senate with bipartisan support.

While House Speaker Mike Johnson indicated another vote could be held later in the day, the setback revealed fractures inside the GOP, particularly among members of the House Freedom Caucus, who objected to the Senate’s influence on the final drafts.

Trump’s vocal support for the GENIUS Act is raising eyebrows, as critics point to potential conflicts of interest tied to World Liberty Financial (WLF), a crypto firm with deep Trump family ties. WLF issued its own stablecoin, USD1, which Bloomberg recently reported was co-developed with Binance and used to settle a $2 billion investment deal via an Abu Dhabi-based fund.

That revelation sparked bipartisan concerns. Rep. Maxine Waters (D-CA) blasted the arrangement as a national security threat, stating:

“Foreign investment is not just a business deal, it’s a direct payment to the sitting US president with the goal of currying favor and influence within the White House.”

Democrats, sensing an opening, declared an “anti-crypto corruption week” of their own, calling for ethics reforms to bar the president, vice president, and members of Congress from holding or promoting digital assets.

Despite the initial vote failure, momentum behind the legislation remains strong. Lawmakers expect additional votes as soon as Wednesday or Thursday. Supporters argue the bills will provide long-overdue clarity for digital asset markets, bring consumer protections, and keep the U.S. competitive with Europe and Asia, where crypto regulations are already in effect.

But the legislative sausage-making is getting messy. Procedural hiccups are common in the House, but the intra-party rebellion, especially following a direct Trump endorsement, is politically significant. Whether it’s a warning shot or a negotiating tactic, it reveals deep ideological divides within the GOP on how to regulate crypto and what role Trump’s business interests should play in shaping policy.

If the bll does get pass this week, then the current dip will prove an excellent time to buy bitcoin and crypto, act accordingly.