Crypto-legislation block drags Bitcoin price
Tuesday night in Washington everything fell apart: three crucial crypto bills tied to former President Donald Trump were unexpectedly blocked.
Tuesday night in Washington everything fell apart: three crucial crypto bills, tightly linked to former President Donald Trump, were unexpectedly blocked. The result: a sharp price correction for Bitcoin, which briefly dipped below the $116,000 mark.
The blockage hit many investors like a cold shower. The bullish mood in the crypto market took a big hit, with losses in both Bitcoin and Ethereum. Shares of crypto-related companies like Coinbase and Circle also had to give up ground.
Partisan line broken: Republicans split off
The blockage happened because 13 Republicans in the House changed course and joined the Democrats. The bills failed to pass: the vote ended in a clear defeat of 196 to 223.
It involved three bills:
- regulation of stablecoins,
- a clear separation of powers between regulators the SEC and the CFTC,
- and a ban on a digital central bank digital currency (CBDC) by the Federal Reserve.
Especially the GENIUS Act was seen as a milestone. This law would provide a clear legal framework for stablecoins like USDT and USDC, while strengthening the global dominance of the U.S. dollar.
Trump steps in
Donald Trump himself weighed in on the debate. On his Truth Social platform he wrote that “after a short discussion everyone has agreed to vote before the bill tomorrow morning.” That suggests there may still be room for a breakthrough during this symbolic “Crypto Week.”
The dissident Republicans reportedly criticized the execution and testing of the new measures, not so much the substance.
Market bounces back
Although the bills have not yet received final approval, the market is showing signs of recovery. As of writing, Bitcoin is trading at $118,200, only 3.9% below Monday’s all-time high.
In short: the storm isn’t fully over, but the crypto market seems hopeful that there will still be a historic breakthrough with political backing, and possibly a symbolic win for Trump.
