US House advances crypto bills after conservative standoff ends

On July 16, 2025, the US House of Representatives advanced three cryptocurrency bills and a defense spending measure for 2026 after resolving internal Republican disputes.

The vote passed 217-212 following extensive negotiations and a nine-hour delay.

The disagreement focused on merging the CLARITY Act, which outlines cryptocurrency market structure, with a bill banning central bank digital currencies (CBDCs).

GOP leaders, including Representatives French Hill (R-Ark.) and G.T. Thompson (R-Pa.), opposed this merger, fearing it would reduce Democratic support.

A compromise was reached when Republican leaders agreed to attach the CBDC ban to the National Defense Authorization Act (NDAA).

This agreement was established during a late-night meeting in House Speaker Mike Johnson’s office, with US President Donald Trump reportedly informed of the arrangement.

This procedural vote sets the stage for the House to consider the cryptocurrency bills in the coming days.

🔗 Source: Politico

🧠 Food for thought

1️⃣ US crypto regulatory fragmentation has hindered market development

The advancement of these crypto bills addresses a longstanding problem of regulatory inconsistency across US government agencies.

Currently, cryptocurrencies face contradictory classifications: the IRS treats them as property for tax purposes, while the CFTC classifies them as commodities, creating compliance challenges for businesses and investors 1.

This regulatory uncertainty has influenced cryptocurrency prices, with Bitcoin’s value historically fluctuating based on regulatory announcements – dropping during Chinese crackdowns but surging after the Bitcoin Spot ETF approval 1.

The CLARITY Act represents the first major attempt to establish a comprehensive regulatory framework at the federal level, potentially resolving issues that have persisted since 2014 when the IRS first classified crypto as property 2.

Without consistent regulations, cryptocurrency businesses have faced barriers to growth, with some choosing to operate in more crypto-friendly jurisdictions like Singapore and Malta that have established clear regulatory frameworks 3.