Trump's Crypto Push: A Sudden Turnaround in Parliament
What a day it's been in the world of cryptocurrency regulation! Earlier today, several key bills aimed at shaping the future of digital assets faced an unexpected setback in the House of Representatives. However, a dramatic twist unfolded just hours later, with a shift in support that could pave the way for these crucial pieces of legislation.
Initial Hurdle for Crypto Bills
Initially, a collection of proposed laws designed to regulate cryptocurrencies, strongly backed by the former President, hit a significant snag. They failed to clear a vital procedural hurdle in the House, which was a blow to the crypto industry hoping for legislative progress this week. The bills couldn't move forward because the House needed to approve the rules for debating them first. The vote was a surprise: 196 in favour and 223 against, with thirteen members of the former President's own party siding with the opposition. This temporary block was a rare moment where some within his party seemed to defy his direction.
A Rapid Reversal
However, the situation quickly changed. Following discussions, the former President announced that those who had initially blocked the bills had now agreed to vote in favour of the rules to advance the legislation. He stated that the doubters had "all agreed to vote" in favour after a brief meeting. This swift reversal highlights the former President's continued influence over his party.
The Bills in Question
Among the legislation awaiting approval, one significant bill focuses on regulating stablecoins. Another aims to clarify whether a digital asset falls under the regulation of the financial watchdog for securities or the body overseeing commodities. A third proposal seeks to prevent the central bank from creating its own digital currency.
Market Reaction to the Setback
When the bills initially failed to advance, several companies with ties to the crypto market saw their share prices drop. For example, a major stablecoin company's shares fell by over 7%, a prominent crypto exchange saw a more than 4% dip, and a digital asset firm experienced a decline of over 2%.
Ongoing Debate
One of the dissenting voices from the former President's party explained their opposition, stating that they voted against the procedural rule because it didn't include a ban on central bank digital currency and because no amendments were allowed. They emphasised the importance of including a ban on central bank digital currency in the legislation, echoing the former President's own stance on the matter.
Earlier in the day, the former President had championed "Crypto Week," urging all members of his party in the House to support the measures. He expressed that the proposed legislation would make the nation a leader in digital assets, putting it far ahead of other global players. He called for a swift positive vote, emphasising that digital assets represent the future.
It remains to be seen how quickly these bills will now progress and what impact they will have on the digital asset landscape.
