Trump moves to end crypto week legislation snag

Audio By Carbonatix

Enlarge

By Chris Prentice

WASHINGTON (Reuters) -U.S. President Donald Trump on Tuesday stepped in to broker an agreement among Republican lawmakers after a snag cast doubt on the fate of long-awaited cryptocurrency legislation that would mark a major victory for the digital assets sector.

A failed procedural vote in the House of Representatives earlier on Tuesday sent shares of crypto firms lower. But the Republican president said in a statement late on Tuesday that he was meeting in the Oval Office with 11 of 12 members of Congress needed to pass the legislation.

“After a short discussion, they have all agreed to vote tomorrow morning in favor of the Rule,” Trump said on his social media platform.

House Republicans had billed this week as “Crypto Week,” and were keen to advance numerous pieces of legislation aimed at providing clarity to the digital asset industry and long-sought legitimacy to the sector.

Several conservative Republicans on Tuesday earlier joined with Democrats in blocking a procedural vote to allow consideration of three crypto bills as part of a dispute over how the measures should be packaged and considered.

Shortly after that vote, House Speaker Mike Johnson told reporters that he planned to continue discussing the matter with members and hoped to vote on it again shortly.

Shares of crypto-related stocks including Circle Internet and Coinbase Global fell on the news of the vote but then pared losses.

The House is attempting to pass a series of crypto-related bills, most notably a bill that would establish a regulatory framework for stablecoins.

Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1-to-1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say they could be used to send payments instantly.

That bill – and another the House is considering that would define when a crypto token is a commodity – would be a huge win for the crypto industry.

The House also was set to consider a bill that would prohibit the U.S. from issuing a central bank digital currency. Republicans say there is a risk this could give the government too much control over Americans’ personal finances.

That bill has not been considered in the Senate and the Federal Reserve has not indicated a desire to develop a central bank digital currency.

(Reporting by Chris Prentice and Caroline Valetkevitch; Editing by Pete Schroeder and David Gregorio)