Battle of Wills on the Hill: Crypto Bills Spark GOP and Industry Divide
As pressure mounts from Trump and the White House, lawmakers wrestle over whether to fast-track the GENIUS Act alone or tie it to market structure
Welcome to the Wednesday edition of the Crypto In America newsletter!
What you’ll read: A battle of wills unfolds over crypto legislation strategy, Rebecca Rettig joins the podcast to discuss DeFi’s prospects in the U.S., and we round up the week’s biggest stories so far.
A power struggle is unfolding on Capitol Hill over how to move forward with crypto legislation, as House and Senate Republicans — and the industry itself — debate whether to pass key bills separately or as a package.
The House received the GENIUS Act on Monday afternoon following its Senate passage last week, but it remains unclear whether lawmakers will move it as a standalone bill or package it with the House’s market structure text and send it back to the Senate for changes.
House Majority Whip Tom Emmer told Punchbowl News on Tuesday that the GENIUS Act has a path in the House — “so long as it’s accompanied by the CLARITY Act,” referring to the House’s market structure legislation. Majority Leader Steve Scalise echoed that sentiment, telling CNBC that combining the two bills is “what the industry wants.”
But the industry isn’t unified on that approach.
A small but influential camp — said to include firms like Coinbase and venture capital giant a16z — is pushing for the bills to pass as a package, viewing it as the only viable political path to getting market structure done this year. Others, particularly in the DeFi community, favor securing a quick win by passing the GENIUS Act first, then tackling market structure reforms afterward.
“The GENIUS Act is a strong bill and would provide much-needed regulatory clarity on stablecoins,” said Amanda Tuminelli, executive director and chief legal officer of the DeFi Education Fund. “We should get the GENIUS Act passed as soon as possible and continue constructive conversations to move market structure legislation forward.”
Turning up the heat on lawmakers, President Trump took to Truth Social last week, urging the House to pass a “clean” GENIUS Act at “lightning speed,” with “no delays and no add ons.”
Two Capitol Hill sources tell Crypto In America that there’s been mounting pressure this week from the White House on House Republicans to follow Trump’s directive, regardless of whether lawmakers believe another approach might make more sense.
The White House has not yet responded to Crypto In America’s request for comment.
Meanwhile, the Senate is also weighing in.
In the wake of the Banking Committee’s release of its own market structure principles— which differ in parts from the House’s version — Senator Bill Hagerty (R-TN) tweeted Tuesday night that he, along with Senators Tim Scott (R-SC) and Cynthia Lummis (R-WY), is working with GOP colleagues to advance market structure legislation as the House prepares to send the GENIUS Act to President Trump’s desk. The message suggested alignment around passing GENIUS as a standalone bill first.
Still, it’s unclear whether all of those Senators are on the same page.
“The House is going to need to do what they think is best,” said Lummis, who led Tuesday’s subcommittee hearing on the Senate’s market structure principles. “There’s a divergence of opinion, even within the industry.”
The Future of DeFi in America
This week, Crypto In America sat down with Rebecca Rettig, Chief Legal Officer at Jito Labs and a longtime legal force in both traditional finance and crypto.
Rebecca shares her path into the digital asset world, unpacks the meaning of decentralization, and offers sharp insights into the current legislative landscape, including the GENIUS Act and ongoing SEC vs. CFTC tensions.
She also dives into the evolving role of stablecoins and the emerging frontier of DeFi derivatives.
Watch on all platforms here.
Midweek Recap
ICYMI. Here are some of the biggest stories so far this week:
The Federal Reserve is dropping “reputational risk” as a factor in bank supervision, saying it will instead focus on clear financial risks. The move comes after criticism the term contributed to the debanking of crypto firms.
In a Tuesday hearing in front of the House Financial Services Committee, Federal Reserve Chairman Jerome Powell said banks are “free to provide banking services to crypto companies and are also free to conduct crypto activities.”
California Senator Adam Schiff introduced the COIN Act, targeting potential crypto conflicts among public officials.The bill would bar the president and First Family from using digital assets for financial gain while in office.
FHFA Director Bill Pulte says the agency is exploring ways to factor crypto holdings into mortgage qualifications.The move could open the door for digital assets to play a role in home loan approvals.
The NYSE has filed to list a Trump Media ETF that would track Bitcoin and Ethereum. The proposed rule change, disclosed in an SEC filing Tuesday, marks the firm’s latest move into digital assets.
Senate Banking Committee Republicans have released crypto policy principles ahead of a new bill. Led by Senators Scott and Lummis, the plan would define crypto assets, shift oversight to the CFTC, and limit the SEC’s role.
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