House Passes Historic Crypto Bill, the GENIUS Act, After Right-Wing Republican Rebellion
Washington, D.C. — In a landmark legislative development, the U.S. House of Representatives passed the GENIUS Act on Thursday, signaling the first major step by Congress to regulate the burgeoning cryptocurrency market. The bill, which specifically outlines a regulatory framework for stablecoins—a digital currency tied to assets like the U.S. dollar—is poised to reshape oversight of the estimated $250 billion stablecoin industry.
The bipartisan vote concluded with 308 lawmakers supporting and 122 opposing the bill, including 206 Republicans and 102 Democrats. The passage comes after a dramatic week-long struggle marked by resistance from right-wing House Republicans who initially stalled progress on the legislation.
Turbulence on the House Floor
The momentum of the GENIUS Act was jeopardized on Tuesday when a group of about a dozen conservative Republicans defeated a procedural vote designed to advance three key crypto-related bills, including GENIUS. This rebellion brought the House floor to a standstill and prompted House Speaker Mike Johnson, a Republican from Louisiana, to cancel additional scheduled votes.
The holdouts, aligned with the conservative House Freedom Caucus, later met with former President Donald Trump at the White House. Trump subsequently announced that party members "have all agreed" to fall in line, although tensions persisted.
On Wednesday, procedural votes became fraught again as some holdouts voted against advancing debate before briefly dropping their opposition. A key sticking point was a push to combine the GENIUS Act with a broader market structure bill—the CLARITY Act—that would clarify when digital assets qualify as commodities or securities. Conservatives favored pairing these with legislation banning a central bank digital currency (CBDC), which they view as a national security risk.
Rep. Andy Harris (R-MD), a House Freedom Caucus leader, revealed that a deal was made with Trump to package the digital asset measures together. However, this plan faced resistance from the bills’ authors and threatened to slow the legislative process since the combined bill would need to return to the Senate for approval.
Final Deal and Passage
Ultimately, lawmakers reached a compromise late Wednesday by attaching the CBDC ban to the annual defense authorization bill, a must-pass piece of legislation. This strategic move allowed holdouts to flip their votes in favor of advancing the GENIUS Act on Thursday.
The Senate had already approved the bipartisan stablecoin bill last month, although that process experienced delays sparked by Democratic opposition concerned over the Trump family’s crypto business dealings. Critics worried that such ties could expose the president to foreign influence.
Controversy and Criticism
The Trump family’s crypto investments have reportedly increased their wealth by billions recently, coinciding with a more relaxed federal regulatory approach to digital currency under the Trump administration. The White House insists there are no conflicts of interest, noting that Trump’s assets are held in a trust managed by his children.
Democrats voiced concerns that the GENIUS Act lacks robust protections for consumers, the financial system, and national security. Rep. Maxine Waters (D-CA), ranking Democrat on the House Financial Services Committee, sharply criticized the legislation during floor debate, stating, “By passing this bill, Congress will be telling the world that Congress is OK with corruption, OK with foreign companies buying influence.”
Yet, some Democrats supporting the law argued that any regulation is better than none. Rep. Josh Gottheimer (D-NJ) emphasized, “The question is, do you want some rules of the road or no rules of the road?”
Next Steps for Crypto Legislation
Alongside the GENIUS Act, a broader market structure bill also passed with bipartisan support and now heads to the Senate. The separate legislation banning a central bank digital currency passed largely along party lines.
The enactment of the GENIUS Act could mark a significant turning point for the cryptocurrency industry in the U.S., potentially positioning the country as a leader in the digital assets arena, a goal also championed by former President Trump.
As the bills move forward, all eyes will be on the Senate’s response and the White House’s eventual signing of the legislation into law.
Reporting by Caitlin Yilek, Politics Reporter, CBS News. Updated July 17, 2025.