Key Points:
- A dramatic political reversal in the U.S. House has revived stalled crypto legislation after a tense standoff.
- The breakthrough came after a last-minute meeting involving former President Donald Trump and key GOP leaders.
- Lawmakers agreed to merge the CLARITY Act with an anti-CBDC provision, though tensions remain.
- The CBDC ban has been linked to the National Defense Authorization Act (NDAA) to avoid Democratic opposition.
- The House is now moving forward with voting on major crypto bills, including the GENIUS Act.
- Passage of these bills would represent a landmark moment for the crypto industry.
From Collapse to Comeback: Crypto Legislation Reborn
The U.S. crypto industry was on the verge of a legislative setback when, in a stunning turn of events, a last-minute political maneuver salvaged what seemed like a lost cause. Just hours after conservative Republicans blocked key crypto-related bills, a dramatic shift unfolded behind closed doors. Former President Donald Trump, in a late-night meeting, reportedly played a pivotal role in brokering a compromise that would keep the legislative momentum alive.
The House had been on the brink of a breakdown, with hardline GOP members resisting the passage of crypto-friendly measures. The situation took a sharp turn when Speaker Mike Johnson, alongside key committee chairs and dissenting lawmakers, managed to hammer out a deal that would merge the bipartisan CLARITY Act with a separate anti-CBDC provision. This strategic move not only placated the more conservative wing of the party but also preserved the broader legislative framework.
The Legislative Chessboard: Merging Bills and Avoiding Collapse
The revised plan involved a clever legislative workaround—moving the controversial CBDC prohibition into a separate must-pass bill, most notably the National Defense Authorization Act (NDAA). This ensured that the provision wouldn’t derail the broader crypto legislation while still achieving the goal of banning a government-backed digital currency. The decision was made after intense negotiations between House leadership and committee chairs, including French Hill and G.T. Thompson, who had initially opposed the merger of the two bills due to concerns about losing Democratic support.
By decoupling the CBDC language from the main crypto package, lawmakers were able to maintain bipartisan backing while still advancing a core conservative priority. The procedural vote, which narrowly passed 217–212, marked a critical turning point. It not only prevented a legislative implosion but also signaled a growing consensus that crypto policy must be addressed urgently and comprehensively.
Trump’s Role and the GOP’s Shifting Stance
Former President Trump’s involvement in the final stages of the negotiations proved to be a decisive factor. After being briefed on the agreement, he reportedly endorsed the compromise, with insiders confirming that “he’s happy with it.” This endorsement from a major political figure helped unify the Republican ranks, easing tensions among hardliners and moderates alike.
Speaker Johnson, who had been under intense pressure to mediate between conflicting factions, praised the breakthrough, calling it a way to “break the logjam” and move forward. His efforts were further supported by communications with Senate Republican Leader John Thune, who is now reportedly working to incorporate the CBDC ban into the NDAA. This behind-the-scenes coordination between the House and Senate has rekindled optimism that a meaningful legislative package can be finalized before key deadlines.
Next Steps: Voting, the GENIUS Act, and the Path Forward
With the procedural hurdles cleared, the House is now poised to move quickly on the next phase of crypto legislation. One of the most anticipated bills is the Senate-backed GENIUS Act, which focuses on establishing a regulatory framework for stablecoins. If passed, this would be the first major piece of crypto legislation to reach the president’s desk—a historic milestone for the industry.
Speaker Johnson has indicated that a vote on the GENIUS Act could occur as early as July 17, just days after the dramatic legislative pivot. The cleared path also allows for swift action on a revised package of spending rescissions requested by Trump, which the House aims to finalize before the Senate’s July 18 deadline.
The Senate’s Parallel Push and the Race Against Time
While the House has made significant progress, the Senate remains under pressure to act swiftly on the rescissions package tied to the broader legislative agenda. Lawmakers in the upper chamber are racing to meet the deadline, with bipartisan efforts focused on ensuring that the anti-CBDC language is preserved in a form that can pass without triggering a filibuster.
The coordination between the two chambers has become a high-stakes balancing act. Lawmakers must navigate partisan divides, procedural complexities, and looming deadlines—all while maintaining the fragile consensus that has allowed crypto legislation to regain traction. The next few days will be crucial in determining whether this momentum can be sustained or if new political headwinds will derail progress once again.
Conclusion: A Legislative Lifeline for Crypto
What began as a week of despair for the crypto industry has transformed into a potential turning point. The last-minute legislative pivot in the House—fueled by behind-the-scenes negotiations, Trump’s endorsement, and strategic compromises—has breathed new life into stalled crypto bills. The merging of the CLARITY Act with the anti-CBDC provision, along with the integration of the latter into the NDAA, represents a masterclass in political maneuvering.
As the House prepares for critical votes and the Senate races to keep pace, the crypto community watches with bated breath. For the first time in months, there is a real chance that the U.S. could pass meaningful crypto legislation—legislation that could define the regulatory landscape for years to come. Whether this momentum holds will depend on continued bipartisan cooperation, effective leadership, and the ability to navigate the ever-shifting tides of Capitol Hill politics.
