DeutschIt was supposed to be a significant political coup, but the plan didn’t work out: Crypto Week failed yesterday in the US Congress. Representatives of the House voted against three new crypto regulations that were actually supposed to be passed this week. CoinPro explains why even Republicans voted against the drafts.
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Crypto Week Fails: US Politicians Block Crypto Laws
The US legislature’s plan to implement a Crypto Week has failed after votes in Congress, as records from Parliament show. Just last week, the House Financial Services Committee happily announced Crypto Week. Three significant regulations were to be approved by the legislature this week alone.
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Confirming three new laws in just five days would have been a tremendous achievement. According to the committee, the plan was to massively increase the importance of the USA for the crypto industry. The politicians eligible to vote wanted to implement US President Donald Trump’s demand to make the United States of America the crypto center of the world.
However, too many members of the lower house refused to comply with these demands. Almost all representatives of the Democratic Party voted against the three laws yesterday – 210 people in number. A further two abstentions came from the Democratic side.
Republican MPs mostly approved the laws. However, the 196 yes votes were not enough to pass the crypto laws. 13 Republicans voted against the laws. A further eleven MPs abstained.
Crypto advocates on social networks are predominantly negatively impressed by the failure of the regulations.
Why Did Crypto Week Fail?
The question arises as to why Crypto Week was able to fail so spectacularly in the first place. The US House of Representatives has a majority of 220 Republican MPs, who usually approve of the plans of the equally Republican government.
In addition, all three regulations had already received support from Democratic politicians in the past. CoinPro only reported on the draft laws on Monday.
GENIUS Act, CLARITY Act and Anti-CBDC Surveillance State Act were intended to ensure more transparency, institutional availability and state recognition of crypto. The crypto industry in particular is considered to be a beneficiary of the regulations.
Opponents from the Republican ranks come primarily from the conservative wing of the Freedom Caucus. Marjorie Taylor Greene, a former member of this internal party group, stated on X that she was dissatisfied with the exact wording of the GENIUS Act.
In order to be able to pass the stablecoin law in good conscience, it must explicitly contain a CDBC ban. Adjustments to the draft were blocked by the Speaker of the House, Mike Johnson.
“Americans don’t want a government-controlled central bank digital currency. Republicans have a duty to ban CBDCs”,” Greene said.
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The Anti-CBDC Surveillance State Act, a draft separate from the GENIUS Act, aims to ban CBDCs. This was also one of the three laws that were voted on. Greene assumes that this is not sufficient.
Greene is not the only politician to express such criticism. Her Republican colleague Anna Paulina Luna suspects that the laws are written in such a way that they allow CBDCs through a back door.
Other Republicans want to combine the three crypto regulations in order to give Congress more political power and therefore blocked the adoption.
That’s why Democrats Reject the US Crypto Laws
Representatives of the Democratic Party justify their no votes with their general criticism, which they have been expressing for years about cryptocurrencies and the associated industry.
There is no consumer protection. In addition, national security risks arise from an increasing spread of cryptocurrencies. In addition, the laws offer too much room for corruption, from which US President Donald Trump in particular wants to benefit.
Other Democrats criticized that the laws are geared towards the crypto industry and that private investors suffer too much damage. Depending on political affiliation, the reasons for the rejection therefore differ significantly.
