A spat in the US Congress temporarily derailed the House of Representatives' "Crypto Week", prompting short-term declines in crypto-related assets.
Crypto Stocks, Coins Show Sensitivity to US Congress Hiccup
16 July 2025 - 09:16 CEST
Certain stocks and coins wobbled after members of the House Freedom Caucus, a staunchly conservative coalition made up of Republicans, sided with Democrats to block a key procedural vote on the GENIUS Act on Tuesday. The group hindered a procedural step required to move forward with this week's legislative agenda.
GENIUS & CLARITY
The vote, which would have allowed debate on GENIUS and related measures like the CLARITY Act, failed 196–223, as conservative Republicans demanded stronger language opposing a central bank digital currency (CBDC).
Stablecoin issuer Circle suddenly slumped 5% 18:30 UTC, the moment the vote took place. Robinhood, the multi-asset trading platform, dropped 4% in minutes at around the same time. The coins themselves were also impacted, with Bitcoin (BTC) decreasing 1% during the 20 minutes either side of the vote.
The GENIUS Act has already passed through the US Senate. It would introduce the first regulatory regime for stablecoins and reassure institutional investors seeking to participate more in the US market. Tuesday's setback does not put a permanent brake on the legislation, but it prevented it from advancing to the House floor as scheduled. House Speaker Mike Johnson abruptly canceled the remainder of Tuesday’s votes as Republican leadership regrouped on next steps.
Legislative push
Without passing the first procedural vote, Republicans would not be able to bring any of their crypto-focused bills forward, stalling what was expected to be a major legislative push around digital asset regulation.
President Donald Trump had encouraged his party to back the legislation in a post on Truth Social, calling the GENIUS Act "a game-changer" and imploring, “ALL REPUBLICANS SHOULD VOTE YES!” Trump later met with Republican holdouts behind closed doors to press for party unity, which he may have secured.
Oval Office talks
He later announced on his Truth Social platform that: “I am in the Oval Office with 11 of the 12 Congressmen/women necessary to pass the GENIUS Act and, after a short discussion, they have all agreed to vote tomorrow morning in favor of the Rule.”
Bitcoin gained following Trump's post, suggesting the political wranglings may not have a sustained impact on the markets. Nonetheless, the events show how sensitive crypto-related assets are to what's happening in Congress this week.
