The U.S. House of Representatives faced a significant setback during the much-anticipated "Crypto Week," as it failed to advance three landmark crypto bills targeting the regulation and future development of digital assets in the U.S.: the Crypto Genius Act, the Clarity Act, and the Anti‑CBDC Surveillance State Act. 

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A Missed Opportunity

Capitol Hill has been under pressure to deliver a modern and cohesive framework for digital assets, an effort that reached its peak this week. Lawmakers had planned back-to-back votes on these consequential bills, aiming to provide much-needed clarity around stablecoins, general cryptocurrency regulation, and the uncertain role of a central bank digital currency (CBDC).

The Clarity Act, seen by many as the centerpiece of the week, proposed a foundational structure by distinguishing between “digital commodities” and “digital securities” and providing the Commodity Futures Trading Commission (CFTC) with expanded oversight. The bill drew from years of bipartisan negotiations and was lauded for seeking to move beyond the patchwork of outdated state and federal regulations that have left both innovators and investors navigating foggy legal waters.

However, despite significant groundwork, including a bipartisan committee vote and widespread support from industry stakeholders, the division remained. The Clarity Act faced criticism from the DeFi sector for its “maturity test” requirements, which some argue would advantage incumbent projects and potentially hinder newer entrants by placing the SEC and CFTC in charge of determining when a blockchain is "decentralized" and mature enough to avoid securities regulations. Others highlighted the bill’s insufficient protections for self-custody of assets and ambiguity around federal preemption over conflicting state rules.

The GENIUS Act and Anti‑CBDC Measure

Similarly, the Crypto Genius Act, already passed by the Senate, primarily focused on stablecoin issuance and called for full backing of stablecoins by fiat assets and annual audits for large issuers. The measure was touted for its consumer protection goals and was seen as a possible early win, perhaps even reaching President Trump’s desk by the end of the week. Its fate is now uncertain.

The Anti‑CBDC Surveillance State Act was designed to permanently block creation of a central bank digital currency in the U.S., aiming to safeguard Americans’ financial privacy. It, too, was shelved alongside the two broader crypto bills, reflecting a House still divided on the future of digital currency and government involvement.

Industry and Market Response

Industry insiders have expressed disappointment, warning that continued inaction may drive developers and capital abroad, leaving the U.S. at a competitive disadvantage as other jurisdictions solidify their crypto frameworks. The Cedar Innovation Foundation, a prominent crypto-advocacy organization, called the Clarity Act vote “the most important” in this Congress, arguing that clear rules are “long overdue” and essential for protecting consumers, unlocking domestic innovation, and bolstering job creation.

Future Outlook

While this week’s legislative impasse has dimmed immediate hopes for federal crypto regulation, the House’s failure to advance these bills does not end the discussion. The Senate may still take up altered versions, and any eventual regulatory framework will require complex rulemaking by relevant watchdogs—a process likely to play out over months, if not years.