The U.S. House of Representatives finally passed a procedural vote to advance three encryption legislations

On July 17, the U.S. House of Representatives passed a procedural vote on three major encryption bills, paving the way for the votes on the "GENIUS Act," "Clarity Act," and "Anti-CBDC Act," which are expected to be voted on again on Thursday local time.

The voting process this time was full of twists and turns. July 14 was originally forecasted to be "Encryption Week" in the House of Representatives, but the actual voting process did not go smoothly. On Tuesday afternoon local time, the House voted 196 to 223 to reject the advancement of three proposals, with 12 Republicans opposing and expressing concerns about the ambiguity of the "GENIUS Act" regarding CBDCs.

9-Hour Voting Breaks Record, Three Proposals Ultimately Advance

The latest vote on July 17 lasted over 9 hours, setting a record for the procedural voting duration in the House of Representatives. Finally, around 11 PM, House Resolution No. 580 passed the review of multiple bills, with a vote count of 217 in favor and 212 against.

The key to resolving the issue lies in the announcement by the House Majority Leader to attach the CBDC ban to the National Defense Authorization Act (NDAA). This ensures that the CBDC ban can be passed alongside the NDAA, which must be approved, prompting the 8 conservative Republicans who previously blocked the bill to ultimately change their voting stance.

After the successful vote, the House Majority Leader stated that the next round of House voting on these encryption currency bills will take place on Thursday.

Currently, among the three encryption-related bills, the GENIUS Act is considered to be progressing the fastest. The bill aims to establish a regulatory framework for stablecoins and was passed by the Senate vote last month. The GENIUS Act may be sent to the President for signature before the end of this week.

The other two proposals include the "Digital Asset Market Clarity Act" ( Clarity Act ), which takes a more comprehensive approach to creating a regulatory framework for digital assets, clarifying the regulatory roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Lawmakers also voted to consider the anti-CBDC bill, aimed at preventing the Federal Reserve from directly issuing central bank digital currency to individuals. Even if it passes the House vote, the Clarity Act and the anti-CBDC bill still need to be voted on in the Senate.

The President Personally Meets with Legislators to Urge the Advancement of the Legislative Process

According to reports, a breakthrough occurred at the last moment of the stalemate on Wednesday, with the president calling the Speaker's office and expressing satisfaction with the agreement reached.

On the morning of July 15, the President stated on social media, "Happy Encryption Week! The House will soon vote on a significant bill aimed at making the United States the undisputed global leader in digital assets," urging House members to proceed with procedural voting.

After the failed vote on Tuesday, on the evening of July 15, the President quickly summoned the opposing lawmakers to the White House and announced that he had persuaded them all to support the measure. On July 16, the President posted that he met with 11 members of the House of Representatives in the Oval Office of the White House on July 15 to discuss the legislative rules for the "GENIUS Act" and received unanimous agreement to support the rules the following morning.

The voting process on Wednesday was equally dramatic. The initial vote ended with 215 votes against 211, and the result was revealed only at the last moment. A small number of Republicans initially opposed the rule, but after intense discussions with party leaders, they changed their votes to "in favor" at the last moment.

However, these Republican lawmakers who strongly opposed it later withdrew their support during the second "record vote," leaving the House chamber to negotiate with party leadership on a potential agreement to advance the legislation, conditional on a more explicit revision of the language regarding the ban on Central Bank Digital Currency (CBDC).

Hardline Republicans blocking the procedural vote on the bill are pushing to merge the market structure bill, the CLARITY Act, with a partisan legislation banning central bank digital currencies. Some Republican lawmakers oppose this plan, fearing it will weaken Democratic support for the market structure bill.

Ultimately, after Republican leaders indicated that measures to prohibit CBDCs would be attached to a must-pass defense authorization bill, Republican rebels dropped their opposition. The agreement was reached following a late-night meeting at the Speaker's office.

According to reports, the president called in at the last moment and was briefly briefed on the details of the agreement. "He is very satisfied with it," said a source familiar with the matter.

It is expected that the "GENIUS Act" will be submitted to the president for signing within this week, becoming the first major encryption bill passed by Congress, marking a significant lobbying victory for encryption companies.

Overall, the House of Representatives' "Crypto Week" has profound significance for the digital asset space. These bills may not only reshape the landscape of the U.S. encryption industry but also establish important foundational precedents for the regulation of digital assets in the future. As the bills progress and presidential intervention occurs, will the regulatory framework continue to advance smoothly? Can the U.S. government fulfill its "Crypto Capital" promise? The answers to these questions are worth our ongoing attention.