Crypto Assets bill vote hits a snag, Washington's "Crypto Week" falls into a stalemate

The "Crypto Week," which was originally seen as an important moment for the Crypto Assets industry in Washington, faced an unexpected setback on Tuesday. Three highly anticipated Crypto Assets regulatory bills failed to pass in procedural voting.

The voting results showed 196 votes in favor and 223 votes against. It is worth noting that 13 Republican representatives voted against along with the Democrats, blocking the procedural motion to debate and advance the bill. This means that unless the House passes the relevant rules of procedure again, these bills, which carry the hopes of the industry, will not be able to enter the substantive debate stage.

At the beginning of this week, the sentiment in the crypto industry in Washington was high, with parties generally expecting these bills to pass smoothly. A certain politician also rallied for "Crypto Week" on his social media platform, portraying it as a key step for the United States to become the "undisputed, number one leader" in the digital assets field. He called on all Republican House members to vote in favor, believing that the relevant bills would put the U.S. far ahead of other countries in the digital assets sector.

The "package" of cryptocurrency legislation that has encountered obstacles includes three bills that are crucial to the industry:

1. Regarding the regulatory bill for stablecoins: The bill received partial support from Democrats in the Senate last month and was successfully passed. It aims to provide a clear regulatory framework for stablecoins and is seen as a key to unlocking broader institutional adoption.

2. Digital Asset Classification Rules Bill: This bill aims to clarify the classification rules for digital assets, specifying which assets should be regulated as securities by the U.S. Securities and Exchange Commission (SEC) and which should be regulated as commodities by the Commodity Futures Trading Commission (CFTC), in order to end the long-standing "regulatory gray area" that has troubled the industry.

3. Preventing Central Bank Digital Currency (CBDC) Legislation: This proposal aims to prohibit the Federal Reserve from creating a central bank digital currency, reflecting concerns among some lawmakers about government control over digital currencies.

These bills are seen as the cornerstone for the United States to establish a comprehensive and predictable regulatory framework in the crypto assets field, which could bring much-needed certainty to the market and attract more capital and innovation.

The most striking aspect of this vote is undoubtedly the "defection" of 13 Republican Congress members. According to media reports, several Republican Congress members cast votes against it.

Among them, a lawmaker from Georgia publicly explained her position on social media. She stated that the relevant bill failed to include a ban on Central Bank Digital Currency (CBDC), and the Speaker did not allow related amendments to be submitted. She emphasized that a certain political figure had already included a CBDC ban in an executive order on January 23, so Congress must also incorporate it into the bill. She believes that "Americans do not need a Central Bank Digital Currency controlled by the government."

The Speaker of the House is thus caught in a dilemma. After the vote failed, he stated that Republicans "are still in dialogue, answering questions," trying to appease and garner support from these conservatives. However, he also admitted that bundling all three bills into a "big package" is not feasible. A senior Republican lawmaker bluntly stated: "A packaged vote will only cause these bills to die in the Senate." This statement reflects the strategic dilemma faced by Republican leadership in balancing the demands of different factions within the party and ensuring the feasibility of legislation.

After the news of the failed vote spread, stocks related to Crypto Assets fell sharply: the stock price of a stablecoin issuer dropped more than 7%, a crypto exchange fell over 4%, and the stock price of a digital asset company also dropped by 2%.

The Speaker of the House has announced a desire to resume procedural voting on the Crypto Assets bill on Wednesday local time. The Louisiana Republican told reporters as he left the Capitol that the party is still in "ongoing communication, addressing members' concerns," and emphasized that "these Crypto Assets bills are a joint priority of the White House, the Senate, and the House of Representatives." According to reports, a certain political figure expressed being very "angry" about the voting result and is in communication with the relevant members.

Even so, some industry analysts remain optimistic about the future of the bill. One analyst noted in a report to clients: "We are likely to vote on the rules again in the House tomorrow (Wednesday). If it doesn't happen tomorrow, it may be postponed until next week." He further stated that he still expects the House to pass the relevant bill, as a certain political figure is pushing for its enactment. He believes that even if the members of the House "Freedom Caucus" oppose accepting the Senate version of the bill, they may eventually concede under political pressure.

The CEO of a certain industry organization is also confident about the final passage of the bill. He pointed out on social media that the best way to address the ban on CBDC is through the relevant legislation: "If lawmakers are interested in banning CBDC and competing with digital currencies issued by other countries, then the way to do this is through the relevant legislation and allowing the private stablecoin market to thrive in the United States."

This setback confirms a reality: in Washington, even agendas strongly pushed by the top may fall victim to the subtle power balance within the party. When technological innovation meets political games, the "compliance path" for Crypto Assets is destined to be bumpy.