The Senate passed the GENIUS (Guiding and Establishing National Innovation for U.S. Stablecoins) Act in June. Sponsored by Sen. Bill Hagerty (R-TN), the bill is President Trump's proposed solution to reduce the risk and financial volatility of cryptocurrencies, such as Bitcoin and Ethereum. Stablecoins, also known as "digital dollars," aim to mitigate these risks by pegging their value to a less volatile financial asset, most commonly the U.S. dollar.
Along with being less volatile than other virtual currencies, stablecoins can facilitate faster, lower-cost financial transactions, supporters of the technology say. Before the Senate vote on the Genius Act in June, Sen. Bill Hagerty of Tennessee, the bill's sponsor, said stablecoins could allow businesses and consumers to settle payments "nearly instantaneously," rather than taking weeks.
Although considered less volatile than other cryptocurrencies, stablecoins come with risks. One of the biggest is that the digital currency can get "depegged" from its underlying asset if that asset's value or liquidity changes. This can trigger trading loses, or systemic market risks to insolvency and liquidity, according to S&P Global Ratings.
The Genius Act, which passed in the Senate last month with broad bipartisan support, would create rules of the road for the $250 billion market for stablecoin, a type of cryptocurrency. The bill is also part of a broader push by Republican lawmakers and President Trump to support the cryptocurrency industry and ease regulations around the emerging sector.
House Republicans on Friday announced that Monday would be the start of "Crypto Week," when they planned to move forward on three crypto-themed bills. Along with the Genius Act, the legislation includes the Clarity Act, which would regulate digital commodities beyond stablecoins; and the Anti-CBDC Surveillance State Act, which would prevent the Federal Reserve from issuing any retail central bank digital currency directly to Americans.
READ MORE: Speedily Passing the GENIUS Act Is a National Security Necessity
"Crypto Week," meant to start with a bang, tumbled into a bust. On Tuesday, the House of Representatives voted 196-123 against moving forward with the act. The Republicans voting "NO" were Ann Paulina Luna (FL), Scott Perry (PA), Chip Roy (TX), Victoria Spartz (IN), Michael Cloud (TX), Andrew Clyde (GA), Eli Crane (AZ), Andy Harris (MD), Marjorie Taylor Greene (GA), Tim Burchett (TN), Keith Self (TX), and Andy Biggs (AZ)
According to sources, the procedural vote failed for two reasons:
1. Democrats chose to tack an amendment for the release of the Epstein Files onto the GENIUS Act vote*;
READ MORE: Big: Speaker Johnson Speaks Out on Epstein Files
2. Several Republican Reps. believed it contained backdoor provisions to create the infrastructure for a central bank digital currency CBDC). Chief among them, Georgia Rep. Marjorie Taylor Greene.
I just voted NO on the Rule for the GENIUS Act because it does not include a ban on Central Bank Digital Currency and because Speaker Johnson did not allow us to submit amendments to the GENIUS Act.
— Rep. Marjorie Taylor Greene🇺🇸 (@RepMTG) July 15, 2025
Americans do not want a government-controlled Central Bank Digital Currency.… pic.twitter.com/NnkeIOH0dE
And AZ Rep. Andy Biggs.
The Senate's GENIUS Act creates a framework for a layered Central Bank Digital Currency (CBDC) and does not guarantee self-custody (the freedom to control your own money).
— Rep Andy Biggs (@RepAndyBiggsAZ) July 15, 2025
House Leadership must allow an open amendment process so Members can freely debate and improve the bill.
Anyway you slice it, it was a nonstarter. However, 11 of those Republican holdouts had a come-to-Jesus meeting with President Trump. It remains to be seen whether the fears about the CBDC have been allayed or if promises to include provisions and amendments to the bill have been made, but it appears that things have been smoothed over enough for the House to take another stab at the procedural vote to move the bill forward.
Trump posted Tuesday evening on Truth Social.
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. Speaker of the House Mike Johnson was at the meeting via telephone, and looks forward to taking the Vote as early as possible. I want to thank the Congressmen/women for their quick and positive response. MAKE AMERICA GREAT AGAIN!
Bottom line: With three days left in Crypto Week, it still has the potential to end with a bang.
*Luna later explained that the objection wasn't to releasing the Epstein files, but rather to a procedural vote on the "previous question," which would have enabled the Democrats to effectively control the floor — in other words, procedural gamesmanship.
Editor's Note: President Trump is leading America into the "Golden Age" as Democrats try desperately to stop it.
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