Crypto-related stocks tumbled Tuesday after U.S. House conservatives derailed a package of digital asset legislation during a procedural vote. The setback sent shockwaves through cryptocurrency markets, triggering declines in key industry players. Robinhood Markets and Coinbase Global closed lower, while Circle Internet Financial - issuer of the world’s second-largest stablecoin - plunged over 4%. Bitcoin, which had scaled new heights just Monday, retreated more than $3,000 following the political turmoil.

The afternoon vote failed 196-223 as 13 Republican dissenters blocked consideration of three crypto bills: the stablecoin regulatory framework, a market structure proposal, and legislation prohibiting Federal Reserve-issued central bank digital currencies (CBDCs). Dissenting Republicans voiced both policy disagreements and institutional frustrations.

Georgia Representative Marjorie Taylor Greene told reporters she opposed the rule because leadership rejected her amendment to bundle all three bills. "The stablecoin legislation doesn’t reflect President Trump’s January 23 executive order explicitly banning CBDCs," Greene asserted. Freedom Caucus Chairman Andy Harris (R-MD) stated his members seek "complete elimination" of CBDC prospects - a goal unattainable under current rules.

Even rule supporters like Ohio’s Warren Davidson criticized the piecemeal approach. "The House is accustomed to getting zero respect from the Senate," Davidson lamented. "We need solutions that make this ‘Crypto Week’ actually focus on cryptocurrency."

The legislative impasse persists despite Federal Reserve Chair Jerome Powell’s repeated assertions that CBDC issuance requires explicit congressional authorization. Merging the bills risks alienating other GOP factions, while forcing the Senate to restart deliberations could cause substantial delays.

Market participants now await reports that House leadership may schedule another vote imminently. Should procedural hurdles clear, crypto legislation debates could commence immediately with final votes potentially occurring later this week.