The U.S. House of Representatives passed three major Crypto Assets bills with overwhelming support, and the White House stated that Trump will sign on Friday.

The votes in favor of the stablecoin regulation-related "Genius Act" are 2.5 times the votes against it, with more than 100 Democratic lawmakers "defecting" to support it.

Written by: Li Dan

Source: Wall Street Journal

The cryptocurrency industry is about to welcome the first official industry laws in the United States, which will help legitimize these digital assets and move towards becoming mainstream financial products.

On Thursday, July 17, Eastern Time, the U.S. House of Representatives passed three legislative proposals regarding the regulation of cryptocurrencies such as stablecoins with an overwhelming majority, sending them to President Trump for signing into law.

Among them, the stablecoin regulation-related "GENIUS Act" received 308 votes in favor during the voting, which is 2.5 times the 122 votes against. More than 100 Democratic lawmakers, including Senate Democratic leader Hakeem Jeffries, "defected" to join the Republican camp and voted in favor.

Earlier during the US stock market's midday session, White House Press Secretary Levitt stated that Congress has enough votes to pass the legislative proposal regarding cryptocurrencies. It is believed that Congress will continue to legislate on cryptocurrency issues. Trump plans to sign the cryptocurrency legislative proposals, including the "Genius Act," during an event on Friday, making them officially effective as law.

During Levitt's speech, Bitcoin briefly turned upward. According to CoinMarketCap data, Bitcoin once broke 119,800 USD, approaching the 120,000 USD mark, rising more than 2,000 USD, or nearly 2%, from the intraday low of 117,600 USD during European stock trading. After the House of Representatives approved the bill, Bitcoin fell to 119,000 USD in after-hours trading in the US stock market, having at one point dropped more than 0.4% during the day.

Before Levitt's speech, on Wednesday evening, the cryptocurrency bills such as the "Genius Act" narrowly passed a critical procedural vote in the U.S. House of Representatives, with only five more votes in favor than against. Just a day earlier, due to a "civil war" within the Republican Party, these bills had failed in the first round of procedural voting.

According to CCTV news, on the evening of the 16th local time, U.S. media reported that the U.S. House of Representatives passed a procedural vote on a cryptocurrency bill by a vote of 217 to 212, allowing the bill to enter the debate process. The voting lasted for more than 8 hours, setting a record for the longest voting time since the electronic voting system was implemented.

The "Genius Act" full name is "Guidance and Establishment of the National Innovation Act for Stablecoins in the United States." The "Genius Act" was passed in a vote in the U.S. Senate on June 17 and submitted to the House of Representatives for approval this week. The House of Representatives also included two other major bills related to the cryptocurrency industry - the "CLARITY Act" and the "Anti CBDC Act."

Three cryptocurrency bills were reviewed and voted on in the House of Representatives, which this week has been referred to as "Cryptocurrency Week" by the House.

However, in Tuesday's procedural vote in the House of Representatives, due to 13 Republican members "defecting" and voting against the related procedural motion together with the Democrats, the three bills mentioned above failed to pass the vote, with 27 more votes against than in favor. The final vote result was 196 votes in favor and 223 votes against.

Wall Street Journal mentioned that House Speaker Johnson stated after the aforementioned vote that hardline critics within the Republican Party want to merge several cryptocurrency bills into a single package, which is why they are blocking procedural votes.

Media reports indicate that the deadlock that previously obstructed the legislative process has eased following Trump’s intervention in the mediation. Republican lawmakers who opposed the legislation met with Trump at the White House late Tuesday night, and after more than nine hours of private negotiations on Wednesday, House Republican hardliners reached a compromise with party leadership on cryptocurrency legislation, allowing three key cryptocurrency bills to advance to the procedural voting stage.

The passage of the cryptocurrency bill is expected to stimulate new demand for US Treasuries.

Currently, the House Republican leaders are pushing three bills that have received support from Trump. They aim to establish a clear regulatory framework for the digital asset industry and are seen as an important milestone in U.S. cryptocurrency policy.

Among them, the "Genius Act" establishes a regulatory framework for stablecoins "pegged" to the US dollar, which is widely seen as beneficial for strengthening consumer protection and enhancing the legitimacy of the cryptocurrency industry. Stablecoins are a type of cryptocurrency, designed to maintain a relatively stable value against certain assets (usually currencies).

The "Clear Act" mainly addresses market structure issues, providing clear guidance for the trading and regulation of digital assets. The "Anti-CBDC Act" aims to prevent the Federal Reserve from directly issuing central bank digital currency (CBDC) to individuals without congressional authorization and from using CBDC to implement monetary policy.

The 21st Century Business Herald points out that three major cryptocurrency bills worth noting will bring about two systemic changes.

Firstly, the restructuring of regulatory responsibilities: the Commodity Futures Trading Commission (CFTC), the highest regulatory body for commodity futures in the United States, will become the main regulatory authority for digital commodities, while the Securities and Exchange Commission (SEC), often referred to as the U.S. securities regulator, will only be able to oversee security tokens and initial offerings. This may indicate a partial relaxation of crypto regulation.

Secondly, the global flow of funds may be reshaped. The requirement for mandatory U.S. Treasury reserves could make stablecoin issuers the third largest buyers of U.S. Treasuries, consolidating the on-chain dollar circulation system. U.S. Treasury Secretary Yellen has predicted that the demand for U.S. Treasuries resulting from the stablecoin legislation will reach $2 trillion.

CCTV once quoted media commentary earlier this month stating that as cryptocurrency becomes more mainstream, it may impact the U.S. bond market. The "Genius Act" will require tokens to be backed by liquid assets such as the U.S. dollar or U.S. government short-term bonds, and will require token issuers to disclose their token reserve details on a monthly basis. This means that issuers must purchase more U.S. government short-term bonds.

Beisent previously encouraged lawmakers to pass the "Genius Act" because it could stimulate market demand for U.S. Treasury bonds.