House GOP Infighting Halts Crypto Bills, Delays CBDC Ban

- Procedural vote fails as GOP lawmakers clash over CBDC ban - Crypto Week stalls amid House infighting, delaying key bills GOP infighting derailed a procedural vote in the U.S. House on September 13, 2023, stalling an effort to advance three cryptocurrency bills. The move creates uncertainty for the ambitious “Crypto Week” agenda. On September 13, CoinDesk reported that a procedural vote to advance the Financial Innovation and Technology for the 21st Century Act and the Clarity for Payment Stablecoins Act failed after 12 conservative Republicans joined Democratic lawmakers in opposition, exposing fractures within the Republican caucus. These GOP lawmakers opposed the measure because it did not include a separate vote on the CBDC Anti-Surveillance State Act. Rep. Marjorie Taylor Greene and others argued that the current language could enable government-issued digital currencies, which they believe would threaten financial autonomy. This internal discord emerged despite an aggressive push from House Speaker Kevin McCarthy, who has been trying to secure separate votes for each bill, believing it is essential for them to pass the Senate. The legislative package aims to establish a long-awaited regulatory framework for the fast-evolving cryptocurrency ecosystem, drawing national attention. The Clarity for Payment Stablecoins Act proposes federal oversight for stablecoins and would require issuers to back them with liquid assets like cash or Treasury bills. The Financial Innovation and Technology for the 21st Century Act aims to resolve jurisdictional disputes between the SEC and CFTC by providing clear rules for classifying cryptocurrencies. Meanwhile, the Anti-CBDC Surveillance Act seeks to ban the Federal Reserve from issuing a retail CBDC, citing fears of financial surveillance and the erosion of self-custody rights. House Speaker McCarthy planned to bring the bills back for individual votes. However, the House has not announced a new vote date, leaving the timing and fate of “Crypto Week” in jeopardy. The delay has rippled into the markets, causing some crypto-related stocks to report modest losses as investors contend with the continued uncertainty. Meanwhile, industry advocates who have lobbied heavily for regulatory clarity are closely monitoring developments as Republicans negotiate internally to bridge their divides and move the bills forward. According to CoinMarketCap, as of September 13 at 12:00 UTC, Bitcoin (BTC) was trading at $26,264, with its 24-hour trading volume up 1.2%. Ethereum (ETH) was trading at $1,618, with its 24-hour volume down 0.8%, while Ripple’s XRP traded at $0.48, with its volume increasing by 4.1%. These fluctuations highlight the market’s sensitivity to regulatory developments in the United States.