Internal disagreements, mainly over calls to include a ban on central bank digital currencies (CBDCs), have caused the US House of Representatives to postpone a critical crypto regulation bill. Despite initial expectations that it would proceed quickly, deep ideological differences over the nation’s digital asset future have delayed the bill’s vote.
The main cause of the delay is conservative lawmakers’ demands that any comprehensive crypto framework specifically forbid the issuance of a US CBDC. A number of Republican representatives have warned that a state-controlled digital dollar could result in the surveillance of citizen transactions, highlighting privacy concerns and the fear of government overreach as the main points of contention.
Even though the larger bill aims to define the roles of the SEC and CFTC, create stablecoin guidelines, and clarify digital asset classifications, this demand has halted bipartisan progress. Proponents contend that enacting a clear legal framework is necessary to maintain US competitiveness in the rapidly changing global cryptocurrency market. But the push for the CBDC ban has created tensions that could cause the law to falter or become much weaker.
The bill’s postponement occurs at a time when regulatory ambiguity is already driving innovation in cryptocurrency abroad. Industry voices have voiced their frustration at yet another setback, pointing out that prompt and transparent legislation is essential for market stability, innovation, and investor protection.
Steve Scalise, the House Majority Leader, was one of 12 Republican lawmakers who voted against looking at the bills on Tuesday. Andrew Clyde, Tim Burchett, Andy Biggs, Eli Crane, Michael Cloud, Marjorie Taylor Greene, Andy Harris, Anna Paulina Luna, Scott Perry, Victoria Spartz, Chip Roy, and Keith Self were the other people who disagreed.
People thought there would be another vote to move the bills forward, but the House adjourned before anything else could be done.
After the vote, Representatives Biggs, Burchett, Green, Luna, and Spartz went on X and said that they were not against the crypto bills, but they didn’t want to pass the GENIUS Act unless it had a specific ban on a CBDC.
Political ideology and regulatory necessity currently torment the bill, leaving its future uncertain.
Also read: Wall Street 3.0 Is Here, and It Looks Like Crypto
