US House Moves Closer to Passing First Federal Crypto Law After Trump Intervention
The Republican-led US House of Representatives has cleared important procedural hurdles on key crypto laws. This progress comes after President Donald Trump intervened to save the initiative, helping push the bills forward after earlier resistance within his own party. The move sets the stage for the first federal law governing digital assets.
Stablecoin Bill Likely to Pass First
The first piece of legislation expected to pass is a bill establishing a federal framework for stablecoins. These digital currencies are pegged to traditional assets like the US dollar and are widely used for fast, low-cost crypto transactions. The stablecoin bill has already passed the Senate. If approved by the House, it will be sent to President Trump for his signature.
For the crypto industry, this law would mark a significant milestone. Stablecoins have become a vital tool for traders moving money across platforms, and clearer regulations could further encourage their adoption.
Additional Crypto Rules Under Review
Beyond stablecoins, the House will consider a separate bill aimed at defining market structure rules for digital assets. This bill will help clarify when a cryptocurrency should be classified as a commodity, which would place it outside the Securities and Exchange Commission’s regulatory reach. The Senate has yet to review a similar measure.
A third bill, popular among conservatives, seeks to ban the Federal Reserve from launching its own digital currency. Some Republicans argue that a central bank digital currency could allow excessive government control over personal finances. The Federal Reserve has stated it is not pursuing such a project.
This third proposal is now set to be attached to a defence authorisation bill as part of a broader legislative package, according to House Majority Whip Tom Emmer.
Trump’s Role in Moving Crypto Bills Forward
On Tuesday, progress on the crypto bills stalled when conservative Republicans joined Democrats to block an earlier vote. President Trump then intervened, meeting with those opposing the legislation and persuading them to support moving the bills forward.
Even after these discussions, procedural votes remained difficult. House Republican leaders spent several hours negotiating with members who resisted voting on the three crypto bills separately. However, the latest votes suggest that formal passage of the legislation is now within reach.
If successful, this will represent the first major regulatory framework for digital assets in the US, offering clearer rules for investors, businesses, and financial institutions.
with inputs from Reuters