Crypto Week Crumbles: US House Derails Pivotal Legislation

Washington just handed crypto a brutal reality check—and Wall Street's 'blockchain revolution' cheerleaders aren't smiling.

Legislative gridlock strikes again

The House failed to advance two key digital asset bills this week, torpedoing what industry insiders had dubbed 'Crypto Week.' No floor votes. No last-minute compromises. Just another reminder that DC moves at the speed of molasses—especially when Wall Street's pet projects hit partisan roadblocks.

Market shrugs (for now)

Traders barely flinched at the news—probably because they're too busy chasing the next meme coin pump. But make no mistake: this regulatory limbo keeps institutional money sidelined. Guess those 'mass adoption' timelines need another revision.

Final thought: Nothing kills innovation like a committee hearing. Maybe next time, crypto lobbyists should try bribing Congress with NFTs of their stock portfolios.

House Rejects Key Crypto Legislation

The proposed legislation included notable measures such as the GENIUS Act, which aimed to establish regulatory clarity for cryptocurrencies including stablecoins, which have gained notable traction over the past months among traditional firms. 

In light of the failed vote, House leadership has indicated plans to hold another vote later in the day. However, it remains uncertain whether this subsequent vote will address the same bills or if amendments will be made to appease those who opposed the original motion.

This vote occurred during “Crypto Week,” a period enthusiastically promoted by President TRUMP in an earlier Tuesday post on the social media site X (formerly Twitter), in which the president stated:

The GENIUS Act is going to put our Great Nation lightyears ahead of China, Europe, and all others, who are trying endlessly to catch up, but they just can’t do it. Digital Assets are the FUTURE, and we are leading by a lot! Get the first Vote done this afternoon (ALL REPUBLICANS SHOULD VOTE YES!).

Market Reacts Negatively

Despite the Optimism surrounding “Crypto Week,” the failure of the vote sent ripples through the market. Notable crypto-linked stocks took a hit in response, with shares of stablecoin issuer Circle (CRCL) plummeting more than 7% toward $195. 

After the news broke, crypto exchange Coinbase (COIN) also saw its stock decline by over 4%, while digital asset firm Marathon Digital Holdings (MARA) experienced a dip of more than 2%.

Featured image from DALL-E, chart from TradingView.com