Bitcoin falls after major crypto Bills backed by Trump hit snag in US Congress
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US President Donald Trump had hailed "Crypto Week" during a post on his Truth Social site and urged all House Republicans to vote “yes” on the measure.
PHOTO: REUTERS
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WASHINGTON - The fate of long-awaited cryptocurrency legislation in the US Congress was cast into doubt on July 15, as a procedural vote to consider the measures was shot down by lawmakers from both parties.
The failure is a blow to the crypto industry, which had been hoping for a series of legislative wins this week that would provide clarity and long-sought legitimacy to the digital asset industry.
US President Donald Trump had hailed “Crypto Week” during a post on his Truth Social site and urged all House Republicans to vote “yes” on the measure.
But several conservative Republicans joined with Democrats in blocking a procedural vote to allow consideration of three crypto Bills as part of a dispute over how the measures should be packaged and considered.
Shortly after the vote, House Speaker Mike Johnson told reporters that he planned to continue discussing the matter with members and hoped to vote on it again shortly.
Bitcoin tumbled to US$115,222 on July 16, dropping 4 per cent in just minutes. Its price was last down 2.8 per cent at US$116,516.00, according to Coin Metrics. That marks a pullback from the day’s high of US$120,481.86.
Shares of crypto-related stocks including Circle Internet and Coinbase Global dropped on the news, but then pared losses. Circle Internet fell over 4 per cent while Coinbase was down 1.5 per cent.
The House was attempting to pass a series of crypto-related Bills, most notably a Bill that would establish a regulatory framework for stablecoins.
Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly.
That Bill – and another the House is considering that would define when a crypto token is a commodity – would be a huge win for the crypto industry.
The House also was set to consider a Bill that would prohibit the US from issuing a central bank digital currency. Republicans say there is a risk this could give the government too much control over Americans’ personal finances.
That Bill has not been considered in the Senate and the Federal Reserve has not indicated a desire to develop a central bank digital currency. REUTERS
