WASHINGTON (Reuters) – The future of anticipated cryptocurrency legislation in the U.S. Congress came under question on Tuesday, as lawmakers from both parties rejected a procedural vote to discuss the measures. This caused some companies in the sector to see a decline in their shares. House Republicans had designated this week as “Crypto week,” aiming to push forward various pieces of legislation to bring clarity to the digital asset industry and establish legitimacy. However, these efforts faced an obstacle when conservative Republicans and Democrats blocked a procedural vote on three crypto bills due to disagreements on packaging and consideration. House Speaker Mike Johnson mentioned plans to continue discussions with members in hopes of another vote soon. Following the news, shares of companies like Circle Internet and Coinbase Global initially dropped but later recovered. Circle Internet fell by over 4%, while Coinbase was down by 1.5%. The House was working on passing multiple bills related to cryptocurrencies, notably one to create a regulatory framework for stablecoins. Stablecoins, a form of cryptocurrency that aims to maintain a fixed value, often pegged 1:1 to the dollar, are widely used by crypto traders for transferring funds between tokens. The passing of these bills, including one that defines when a crypto token is considered a commodity, would be a significant victory for the crypto industry. Additionally, the House was set to debate a bill that would prevent the U.S. from issuing a central bank digital currency. Republicans have expressed concerns about potential government control over personal finances. This bill has not yet been addressed in the Senate, and the Federal Reserve has not shown interest in developing a central bank digital currency.
