U.S. Crypto Legislation Stalls Over CBDC Controversy

The House's push to pass three pivotal crypto bills before August recess hit an unexpected snag. Republican dissenters, led by figures like Steve Scalise and Marjorie Taylor Greene, withheld support during Tuesday's procedural vote, demanding explicit CBDC prohibitions in the stablecoin-focused GENIUS Act. Their resistance reflects deepening ideological fractures over digital currency governance.

Critics argue the current framework risks enabling a surveillant CBDC architecture while lacking protections for self-custody. The impasse forced adjournment, though negotiations continue ahead of Wednesday's session. House Speaker Mike Johnson maintains a piecemeal approach, warning that combining bills WOULD guarantee Senate rejection.

Market observers note the irony: legislation meant to provide regulatory clarity now faces uncertainty itself. Custodia Bank CEO Caitlin Long downplayed the setback, suggesting such hurdles are inevitable in shaping crypto policy. The outcome could Ripple through markets, particularly for stablecoin-reliant trading pairs across major exchanges.