House expected to vote on historic crypto bill, the GENIUS Act, after right-wing rebellion

The House is set to vote on a groundbreaking piece of legislation to regulate cryptocurrency after a tumultuous few days in Washington. The bill in question, known as the GENIUS Act, is poised to be the first significant crypto legislation ever passed by Congress.

Earlier this week, a group of conservative Republicans staged a rebellion, causing chaos on the House floor and stalling the advancement of three crypto bills, including the GENIUS Act. This legislation aims to establish a regulatory framework for stablecoins, a type of cryptocurrency tied to the value of assets like the U.S. dollar.

House Speaker Mike Johnson, a Republican from Louisiana, had to cancel further floor votes as the holdouts sought a meeting with President Trump. After negotiations, the holdouts agreed to fall in line, but tensions rose again during Wednesday’s procedural vote.

Republican Rep. Andy Harris of Maryland, who leads the House Freedom Caucus, revealed that a deal had been struck with President Trump to combine the digital asset measures. However, this plan faced opposition from the bill’s original authors, disrupting what House Republicans had dubbed “crypto week.”

Initially, House Republicans wanted to combine the GENIUS Act with the CLARITY Act, a broader bill that would establish rules for determining when a digital asset is classified as a commodity or security. This move would have sent the legislation back to the Senate and slowed down the process. President Trump urged Congress to pass the GENIUS Act as a standalone bill to position the U.S. as a leader in digital assets.

Conservatives pushed to link the CLARITY Act with the Anti-Central Bank Digital Currency Surveillance State Act, which aimed to prohibit the Federal Reserve from issuing a central bank digital currency. The Senate had already approved the stablecoin bill, but concerns about conflicts of interest and weak consumer protections lingered.

After intense negotiations, a compromise was reached to tie the ban on a central bank digital currency to the annual defense reauthorization bill. This agreement allowed the legislative process to move forward, despite initial hiccups.

While some Democrats raised concerns about the legislation’s shortcomings, others argued that regulations for the cryptocurrency industry were long overdue. Democratic Rep. Josh Gottheimer of New Jersey emphasized the importance of having some rules in place to govern the digital asset market.

As the House prepares to vote on the GENIUS Act, the outcome remains uncertain. The legislation has sparked intense debate and scrutiny from both sides of the aisle, reflecting the complex nature of regulating the rapidly evolving cryptocurrency industry.