In a shocking flip of occasions through the extremely anticipated “Crypto Week,” the US Home of Representatives voted towards the GENIUS Act yesterday, regardless of widespread expectations that it could cross alongside two different crypto-related payments. The choice despatched ripples by means of the crypto market, catching many traders and trade individuals off guard, because the GENIUS Act was seen as a key step towards establishing clearer regulatory pointers for stablecoins.
Probably the most vocal opponents of the invoice was US Consultant Marjorie Taylor Greene, who represents Georgia’s 14th District and at present serves as Chairwoman of the DOGE Committee. In a press release following the vote, Greene defined that her opposition stemmed from the invoice’s failure to incorporate a ban on Central Financial institution Digital Currencies (CBDCs). She emphasised that People don’t need a government-controlled digital greenback and that Republicans have an obligation to defend monetary freedom and privateness by opposing CBDCs.
The surprising rejection of the GENIUS Act raises new questions concerning the route of crypto regulation in the US and highlights the rising divide over CBDC coverage. As lawmakers proceed to debate the way forward for digital finance, the highlight now turns to how Congress will proceed.
CBDC Debate Ignites As Trump Asserts GENIUS Act Vote Will Go
US Consultant Marjorie Taylor Greene additionally criticized Speaker Mike Johnson for not permitting members of Congress to submit amendments to the laws.
“People don’t need a government-controlled Central Financial institution Digital Forex,” Greene declared. “Republicans have an obligation to ban CBDC.” She pointed to former President Donald Trump’s government order from January 23, which explicitly known as for a CBDC ban, arguing that Congress ought to replicate that place throughout the GENIUS Act.
The dispute over CBDCs has now emerged as a key dividing line throughout the broader crypto coverage debate. For critics like Greene, a CBDC represents authorities overreach and a direct risk to particular person monetary privateness, considerations which have gained traction amongst conservatives.
Regardless of the failed vote, US President Donald Trump struck an optimistic tone on his Reality Social account, signaling that the legislative push is much from over. “I’m within the Oval Workplace with 11 of the 12 Congressmen/ladies essential to cross the GENIUS Act and, after a brief dialogue, they’ve all agreed to vote tomorrow morning in favor of the Rule,” he wrote.
If Wednesday’s vote succeeds, it might breathe new life into the GENIUS Act and reframe the dialogue round crypto regulation. Nevertheless, the rising insistence on a CBDC ban might proceed to complicate bipartisan assist, particularly as the difficulty turns into extra deeply entangled within the 2024 presidential race and the way forward for monetary sovereignty within the US
Stablecoin Dominance Drops To 7.08% As Threat Urge for food Rises
The weekly chart of stablecoin dominance reveals a transparent downward shift, with the metric at present sitting at 7.08%, marking a gradual decline from its current highs above 9%. This pattern means that capital is rotating out of stablecoins and into extra unstable crypto belongings like Bitcoin and Ethereum, a typical sample during times of renewed market confidence.
Stablecoin dominance is now buying and selling under all key shifting averages: the 50-week (7.72%), 100-week (7.97%), and 200-week (9.31%) SMAs. This technical breakdown highlights a weakening place for stablecoins relative to the broader crypto market. Traditionally, when dominance falls under these ranges, it alerts rising danger urge for food and a shift towards the buildup of development belongings, which aligns with present bullish momentum throughout altcoins and ETH.
This decline in dominance—regardless of whole stablecoin provide persevering with to rise—is a bullish macro sign. It reveals that liquidity is current and shifting into the market, not out of it, supporting the case for additional upside within the months forward.
Featured picture from Dall-E, chart from TradingView
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