Speaker Mike Johnson is trying again to pass landmark cryptocurrency legislation this week after Tuesday’s failed rule vote. This time, President Donald Trump says he has the votes.
After 12 hard-liners tanked the procedural vote setting up debate on three cryptocurrency bills, the president announced he flipped the holdouts after a meeting with them in the Oval Office on Tuesday night.
“Johnson was at the meeting via telephone, and looks forward to taking the Vote as early as possible,” Trump wrote on Truth Social.
Some of the House Republicans who tanked the crypto rule were also at the Treasury Department on Tuesday night talking through their concerns about a possible central bank digital currency, according to two Republicans granted anonymity to discuss the talks.
House Freedom Caucus members were initially demanding a ban on any government sponsored digital currency be added to the GENIUS Act, the Senate-passed stablecoin bill, out of concerns over privacy and stifling private sector innovation. That language already exists in the CLARITY Act, a crypto market structure bill also slated for action this week.
“Central bank digital currency — we have to put a stake in its heart once and for all,” House Freedom Caucus Chair Andy Harris (R-Md.) told POLITICO on Tuesday after the failed vote. “The action under that rule wouldn’t have done it.”
It’s not clear what assurances the holdouts got. But the House is now flipping its schedule: Lawmakers will vote on the GENIUS Act on Wednesday after the rule vote, rather than voting first on the CLARITY Act. Trump has said he wants the Senate-passed stablecoin bill sent to his desk this week. After the party-line rule vote, all three cryptocurrency bills are expected to easily pass with some Democratic support.
Speaking of central banks: Several Republicans left the Oval Office meeting under the impression that Trump is about to move against Fed Chair Jerome Powell. Rep. Anna Paulina Luna (R-Fla.) posted to X last night that an announcement is “imminent.” Powell has steadfastly insisted he will remain in his post, and firing Powell could easily backfire on Trump and cause markets to tank.
What else we’re watching:
— Vote-a-rama begins: Senate Majority Leader John Thune can let out an initial sigh of relief after Republicans cleared the first procedural hurdles Tuesday on Trump’s effort to claw back billions in funding. Senators will move forward with a vote-a-rama on amendments starting at 1:30 p.m. Wednesday, when rescissions skeptics like Sen. Lisa Murkowski (R-Alaska) plan to take another shot at further tweaks to the bill.
— Crypto hearing: The Ways and Means Oversight Subcommittee will meet Wednesday morning to discuss ways to harmonize the tax code with the other regulatory blueprints for digital assets pending votes on the chamber floor. The hearing will feature testimony from industry players including Blockchain Association CEO Summer Mersinger and Jason Somensatto, director of policy at Coin Center.
— Epstein fallout: Most Republican members are steering clear of the Epstein turmoil, but signs of discomfort are showing. Johnson broke with Trump on Tuesday to call on the Department of Justice to release all of its information on Jeffrey Epstein and for Attorney General Pam Bondi to explain her previous statement about having some sort of “client list.” Rep. Tim Burchett (R-Tenn.) is pushing House Oversight Chair James Comer (R-Ky.) to invite Epstein accomplice Ghislaine Maxwell to testify in a public hearing before the committee.
Meredith Lee Hill, Calen Razor and Benjamin Guggenheim contributed to this report.
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