Two bills regulating cryptocurrency passed the House on Thursday, gaining bipartisan support after a GOP revolt over aspects of the bill earlier in the week.
The Digital Asset Market Clarity Act passed with a  294-134 vote when 78 House Democrats joined all Republicans to support it.
The more conservative Republicans, including many in the Freedom Caucus, wanted to prevent the Federal Reserve from issuing a central bank digital currency (CBDC).
President Donald Trump met with the dissenters on Tuesday and struck a deal that added this provision, but it turned so many others against the bill that it led to an extended debate on the House floor.
Lines drawn
Ultimately, the provision was adopted after the longest House vote on record.
The main issue the bill wanted to deal with was when cryptocurrency assets would be considered securities and when they would be considered commodities.
Once these lines are drawn, cryptocurrency can be overseen by either the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC).
This isn’t even the first cryptocurrency bill passed by the House. The earlier Financial Innovation and Technology for the 21st Century Act was passed last May with similar bipartisan support, but was never taken up by the Senate.
With Trump pushing for the Clarity Act, as it has been nicknamed, there is probably a higher probability of it being taken up by the Senate this time around.
GENIUS
The other bill passed by the House was the GENIUS Act, which stands for Guiding and Establishing National Innovation for U.S. Stablecoins.
This bill would regulate payment stablecoins as part of the U.S. economy, and is intended to prevent Big Tech from dominating the stablecoin market.
It has already passed the Senate and was signed into law by Trump on Friday.
Part of the attraction of cryptocurrency was the lack of regulation around it, because it was such a brand new concept at the time.
But that lack of regulation is coming to an end, which may have an impact on the popularity of crypto and its attraction for businesses and investors in the future. Republicans and Trump want to see the regulation unfold in the right way, rather than overregulation by the government the way the left would do.
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Author: Jen Krausz
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