A key piece of cryptocurrency legislation backed by President Donald Trump appeared to be in jeopardy earlier Tuesday after failing to clear a critical procedural vote in the House of Representatives. But by evening, Trump claimed victory – announcing that he had personally secured the support needed to move the bill forward.
Key Takeaways
The GENIUS Act initially stalled in the House due to a failed procedural vote despite bipartisan Senate approval.
President Trump intervened directly, securing commitments from key GOP lawmakers to revive the bill.
The House is now set to re-vote, with expectations high for the bill’s passage later this week.
The Genius Act
The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, designed to regulate payment stablecoins in the U.S., stalled in the House during a procedural vote amid GOP divisions. At least 13 Republicans broke ranks and voted against a resolution required to advance the bill, temporarily derailing what had been billed as “crypto week” by Republican leadership.
Despite the setback, Trump remained publicly insistent on swift action, writing earlier in the day on Truth Social:
“All Republicans must vote YES on the GENIUS Act today. Stablecoin regulation is essential to America’s leadership in digital assets. Get the first vote done this afternoon!”
But by Tuesday evening, the tone shifted dramatically. Trump posted again, this time with a photo and message stating that he had met with 11 of the 12 Republican lawmakers critical to passing the bill — and that they had all agreed to vote in favor of it.
“I am in the Oval Office with 11 of the 12 Congressmen/women necessary to pass the GENIUS Act,” Trump wrote. “They have all agreed to vote tomorrow morning in favor of the Rule… I want to thank the Congressmen/women for their quick and positive response. MAKE AMERICA GREAT AGAIN!”
House Speaker Mike Johnson, who was reportedly on the call during the Oval Office meeting, is expected to bring the bill back for a vote on Wednesday morning.
Political Backlash and Ethics Questions
The GENIUS Act, which passed the Senate in June with bipartisan support, is one of three crypto-related bills prioritized by Republicans this session. But the legislation has drawn sharp criticism from Democrats, particularly due to Trump’s personal financial ties to the industry.
Trump has been promoting World Liberty Financial (WLF) — a crypto firm backed by members of his family — which recently launched the USD1 stablecoin. Bloomberg reported last week that the coin was partly developed in cooperation with Binance and used to facilitate a $2 billion investment via an Abu Dhabi-based firm. This raised red flags among ethics watchdogs and Democratic lawmakers, who say the president is actively pushing legislation that could directly benefit his business interests.
“Foreign investment is not just a business deal – it’s a direct payment to the sitting U.S. president with the goal of currying favor and influence within the White House,” said a statement from Rep. Maxine Waters’ office.
In response, House Democrats launched an “anti-crypto corruption week” initiative to counter the GOP’s push. They are demanding that crypto-related bills include clear conflict-of-interest provisions barring the president, vice president, and members of Congress from holding or promoting cryptocurrencies while in office.
What Comes Next
Assuming the GENIUS Act clears the procedural hurdle on Wednesday, it is likely to head to a full floor vote before the end of the week. If passed, it would mark the first major federal law governing payment stablecoins – setting rules for reserves, licensing, and oversight.
Trump’s reengagement with the issue and his apparent behind-the-scenes lobbying effort may help move the bill over the finish line. But with mounting questions over conflicts of interest and ethics, the political cost of the victory may be far from settled.
The Talk
Real voices. Real reactions.
Add your reaction to this story:
Trusted
Our Crypto Talk is committed to unbiased, transparent, and true reporting to the best of our knowledge. This news article aims to provide accurate information in a timely manner. However, we advise the readers to verify facts independently and consult a professional before making any decisions based on the content since our sources could be wrong too. Check our Terms and conditions for more info.
