Crypto Regulation Chaos: Clarity Bills & GENIUS Act Derailed by Procedural Blunder

Another day, another bureaucratic faceplant in crypto regulation.

Lawmakers fumble the ball—again—as critical digital asset legislation gets shelved due to 'procedural failures.' Because nothing says 'financial innovation' like red tape and delays.

Here’s what got torpedoed:

The Clarity Bills: A rare bipartisan effort to define crypto’s regulatory framework—now stuck in limbo because someone forgot to dot the i’s. Classic.

GENIUS Act: The 'Getting Everyone’s Needs In US Securities' proposal (yes, they forced that acronym) aimed to streamline token classifications. Postponed indefinitely. Because why make progress when you can hold committee meetings?

Meanwhile, Wall Street quietly shorts the news—because nothing fuels trad-fi profits like regulatory uncertainty.

In Brief

• The House canceled votes on two key crypto laws on Tuesday.
• The Clarity and GENIUS texts are now on hold after a procedural rejection.
• Internal divisions, notably around CBDCs, are slowing their adoption.

A Procedural Failure Revealing Internal Division

On Tuesday, a procedural vote designed to advance three bills related to digital assets failed: 196 in favor, 223 against. The consequence was immediate: all votes scheduled for the day were canceled, effectively suspending discussions on Clarity and GENIUS, two texts awaited by the crypto ecosystem for months.

The GENIUS law was intended to regulate the stablecoin sector by imposing dollar guarantees and annual audits. It had already been approved by the Senate and could have reached Donald Trump’s desk before the end of the week. As for the Clarity text, it promised to clarify the respective roles of the SEC and the CFTC while requiring increased transparency standards for players in the crypto ecosystem.

But it is precisely this desire to regulate a historically unregulated market that sparks opposition. For some Republican lawmakers, notably Greene, GENIUS does not go far enough in banning central bank digital currencies (CBDCs). Their fear? Increased government surveillance over citizens’ transactions.

GENIUS and Clarity: Ambitious Projects on Hold

Behind Tuesday’s cancellation lies much more than a simple legislative setback. The Clarity and GENIUS projects embodied a historic attempt to provide the United States with a clear roadmap on cryptocurrencies. GENIUS, in particular, proposed to establish a stablecoin market supported by the private sector, ensuring user security while protecting the country’s monetary sovereignty.

Cody Carbone, CEO of the Digital Chamber, remains optimistic. According to him, discussions will resume Wednesday. He argues that GENIUS is the best response to the specter of the CBDC: rather than prohibit it by force, it proposes to make the use of a public digital currency obsolete through the performance of a competitive private market. This position is shared by several industry figures but remains contested within political ranks.

Behind the scenes, Donald TRUMP is said to be pressuring for the project to move forward quickly, aware of the strategic impact this legislation could have on the American digital economy. His direct involvement could tip the scales in the coming days.

A Crypto Week with a Bittersweet Taste… But Not Without Future

The Crypto Week, presented as a unique opportunity to evolve the regulatory framework, ultimately faces the reality of partisan tensions. The House was also to examine a separate bill, sponsored by Tom Emmer, banning the Federal Reserve from issuing a CBDC accessible to individuals: a text which, ironically, might have addressed the objections of dissenters.

The stakes go far beyond the technical framework. This is an ideological battle between a state guaranteeing digital freedoms via flexible regulations and a more restrictive approach wary of any FORM of centralized digital currency.

While a potential resumption of votes is expected, hypothetically Wednesday for Clarity and Thursday for GENIUS, crypto markets remain in anticipation. Because beyond internal debates, America is playing its credibility against powers like China, which is advancing stealthily, and Europe, already ahead in digital asset regulation.

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