Trump-Backed Crypto Bills Stall, Sending Bitcoin Tumbling

Bitcoin saw a significant drop on Tuesday, falling to as low as $115,222, after a series of cryptocurrency-related bills, prominently championed by President Donald Trump, hit an unexpected roadblock in the House of Representatives. The digital currency’s price was last reported around $116,443, marking a nearly 4% decline from its recent highs and a notable retreat from the day’s peak of $120,481.86.

The downturn in Bitcoin’s value directly followed the failure of multiple crypto bills to clear a crucial procedural hurdle in the House. In a 196-223 vote, 13 Republicans joined Democrats to block the motion, effectively stalling legislative progress for now. This unexpected gridlock comes after a period of considerable optimism in the cryptocurrency market. Bitcoin had recently been trading at all-time highs, propelled by strong institutional buying of Bitcoin exchange-traded funds (ETFs) and a rising expectation that Congress would soon establish clear regulatory frameworks for digital assets. The anticipation had been building for weeks, with many in the industry hoping for a “Crypto Week” of legislative wins.

The impact of the congressional roadblock extended to publicly traded companies in the crypto sector. Shares of Bitcoin miners Riot Platforms and Mara Holdings closed down 3.3% and 2.3% respectively. Crypto trading platform Coinbase also saw its stock slip by 1.5%. All three companies continued to experience downward pressure in extended trading, reflecting broader market unease. The stalled legislation included several key proposals: one aimed at establishing a national framework for stablecoins, another seeking to clarify the regulatory authority between the SEC and CFTC over various crypto assets, and a third intended to permanently ban the Federal Reserve from creating a central bank digital currency. The failure to advance these bills introduces renewed uncertainty for an industry that has been actively seeking regulatory clarity and mainstream acceptance.