Crypto Crossfire: Trump, GOP Clash With House Over Digital Dollar Law

Washington, D.C. — A major political standoff is brewing in Congress over the future of cryptocurrency in the United States, as Senate Republicans and President Donald Trump attempt to pressure the House of Representatives into swiftly passing a narrowly focused crypto bill. The conflict highlights a deeper debate within the GOP over how aggressively to push broader reforms in the fast-evolving digital asset industry.

At the heart of the debate is Trump’s campaign promise to position the U.S. as the global capital for cryptocurrency innovation. Last month, the Senate passed a bipartisan bill regulating stablecoins, a class of cryptocurrencies pegged to the U.S. dollar and often used as intermediaries in digital financial transactions. The bill, formally titled the GENIUS Act, passed by a decisive 68-30 vote and represents the first serious federal effort to set up clear rules for issuing and managing stablecoins.

But while Trump and Senate leaders want the House to approve the bill as is, House Republicans are pushing for a broader approach. They’re preparing what insiders are calling “crypto week” — a coordinated legislative push that includes not just the Senate bill, but also a sweeping proposal to overhaul the way cryptocurrencies are classified and regulated under federal securities and commodities laws.

“We’ve worked for years to create a comprehensive framework,” said Rep. French Hill (R-Ark.), chair of the House Financial Services Committee. “The Senate’s bill is an important step — but it’s not the final destination.”

Trump Wants Speed, Not Scope

President Trump has made it clear that he wants the GENIUS Act passed without amendments or delays. Backed by key Senate Republicans, Trump has urged lawmakers to avoid attaching more controversial crypto reforms to the bill, warning that doing so could derail the bipartisan support it currently enjoys.

“We need a clean bill, and we need it fast,” Trump reportedly told aides, according to sources familiar with internal discussions.

However, GOP leaders in the House appear divided. Some, like Rep. Hill, are eager to pass additional market structure reforms — even if it means delaying passage of the stablecoin rules. Others fear that attempting to fold too many reforms into one bill could fracture the coalition of Democrats and Republicans needed to push crypto regulation forward.

Senate Resistance to House Changes

Sen. Bill Hagerty (R-Tenn.), the primary architect of the Senate’s stablecoin bill, is among those urging caution. Speaking to reporters, Hagerty emphasized that the GENIUS Act was carefully negotiated and would be difficult to revise without losing essential Democratic support.

“Getting even eight or nine Democrats to back something in this environment is extremely hard,” Hagerty said. “We can’t risk losing the momentum.”

The GENIUS Act, if passed into law, would require stablecoin issuers to hold their token reserves in highly liquid assets such as U.S. dollars and short-term Treasury securities. It would also mandate monthly disclosures to ensure transparency and accountability in the sector.

High Stakes for the Industry

Stablecoins are widely used in the cryptocurrency world to facilitate instant payments and low-fee transfers. They are considered a foundational component of crypto trading, allowing users to move between tokens without relying on traditional banks.

Crypto industry leaders have long advocated for clear, uniform federal guidelines, arguing that inconsistent state-level rules and regulatory uncertainty have stifled innovation and slowed adoption in the U.S.

According to OpenSecrets, the crypto sector spent more than $119 million in the last election cycle backing candidates who support digital asset regulation, making it one of the most politically active emerging industries in Washington.

“We finally have a chance to bring order to the digital economy,” said Bo Hines, director of the White House’s Council of Advisers on Digital Assets. “The president is committed to getting this done before the August recess.”

A Legislative Gamble

Yet despite the urgency, the House is far from unified. Some GOP lawmakers are wary of being seen as caving to Trump or the Senate. Others are concerned that the broader market structure bill — which seeks to redefine how digital tokens are classified as securities or commodities — could spark fierce opposition from financial regulators or derail the narrow consensus built around stablecoins.

The Senate bill is expected to be taken up by the House in the coming week, though House leaders have not confirmed whether they’ll amend it. If they do, the altered legislation would need to be renegotiated with the Senate — potentially delaying passage by several months.

Meanwhile, crypto investors and firms remain in limbo, awaiting clarity on how the U.S. government intends to oversee one of the most transformative technologies of the 21st century.