The House of Representatives is examining three major cryptocurrency bills as part of “Crypto Week.” Despite Donald Trump’s stated support, internal opposition among Republicans is complicating the vote, particularly around the GENIUS Act, which is accused of paving the way for a disguised CBDC.
Republicans defeat Donald Trump’s bill
This week in Washington, we are witnessing “Crypto Week,” a week in which three important bills for the cryptocurrency sector are being examined: the GENIUS Act regulating stablecoins, the Clarity Act redistributing roles between the SEC and the CFTC, and the Anti-CBDC Surveillance State Act aimed at prohibiting any possibility of central bank digital currency (CBDC).
Supported by Trump, these laws are putting pressure on the House of Representatives: the opposition is denouncing favoritism towards the crypto industry and potential conflicts of interest involving the president, while dissenting voices are even being heard within the Republican camp.
This story began in April 2024, when two senators introduced the first version of the GENIUS Act. The bill gained momentum with Trump’s return to the White House and could come to a head this week with the House vote on the legislation.
While the presidential majority seemed sufficient to pass the three laws, the House ultimately rejected the procedure by 223 votes to 196.
Last night, Trump announced on Truth Social that the situation would be resolved today. He claims to have met with 11 key members to push the procedure through, all of whom are now ready to vote in favor of the text.
I am in the Oval Office with 11 of the 12 members of Congress needed to pass the GENIUS Act, and they have all agreed to vote tomorrow morning in favor of the rule.
Following Trump’s intervention, Majority Leader Steve Scalise released a new procedural voting schedule for the three bills. The vote is scheduled for Wednesday at 12:20 p.m. (Washington time), or 6:20 p.m. in France.
Why is it so important to ban CBDCs?
Although their proponents argue that central bank digital currencies (CBDCs) are intended to improve transaction efficiency for users, their implementation reveals a very different reality. In China, for example, a CBDC is already in place and serves as a surveillance tool within the social credit system established by the regime. Some digital yuan payments are regularly blocked for citizens whose social credit score is deemed too low. The European Union is also developing its own central bank digital currency, Cash+, whose rollout has been accelerated under the impetus of Christine Lagarde, notably in response to Donald Trump’s ban. Like China, Europe could thus introduce one of the most controversial tools in terms of democracy by the end of the year, further strengthening the centralized power exercised by the Central Bank and European institutions over their citizens.
Furthermore, as we explained in our article in May when the GENIUS Act was reintroduced, the current version of the text could pave the way for a covert CBDC. The GENIUS Act establishes a significant proximity between the Fed and stablecoin issuers, particularly those managing more than $10 billion. This proximity could allow the Fed to monitor certain decisions, collect data, and even exercise indirect control, thereby replicating the functionality of a CBDC through a private stablecoin.
Thus, when Republican representatives reject the GENIUS Act by demanding the explicit addition of a ban on CBDCs, they are in fact seeking to strengthen this ban to prevent any circumvention or reinterpretation in the future. The regulation of cryptocurrencies around the world reveals a lot about political trends: while the United States is seeking to innovate, adopt these technologies, and open its market to competition, Europe seems to be engaging in over-regulation that stifles innovation and is sometimes inspired by the most authoritarian models of monetary surveillance.
