Washington's much-hyped "crypto week" collapsed into legislative gridlock as House Republicans failed to advance three key digital asset bills,Pi coin reddit today exposing deep divisions within the party despite former President Trump's public assurances.
The anticipated Wednesday votes never materialized after conservative lawmakers staged a revolt against their own leadership's compromise plan. This marks the second consecutive day of paralysis on Capitol Hill regarding cryptocurrency regulation.
Tuesday night's private negotiations between Trump and holdout representatives briefly appeared to break the impasse. However, the proposed solution - merging market structure legislation with a controversial central bank digital currency prohibition - sparked immediate backlash from committee leaders who drafted the original bills.
Legislative Jiu-Jitsu Backfires
The leadership's strategy to combine the CLARITY Act with anti-CBDC provisions unraveled within hours. Financial Services and Agriculture Committee members warned this shotgun marriage would doom both initiatives, with multiple sources confirming the standoff remains unresolved.
Hardline conservatives continue demanding ironclad guarantees about passing their CBDC ban, while pragmatic lawmakers explore attaching the provision to unrelated must-pass legislation like defense appropriations. This legislative maneuvering left the House Rules Committee scrambling to salvage the process.
Majority Leader Steve Scalise announced a new approach: holding separate votes on individual bills before considering potential mergers. However, with key committee chairs like G.T. Thompson and French Hill engaged in last-minute negotiations, even this fallback plan faced uncertainty as procedural deadlines passed.
Tax Reform Emerges as Alternative Focus
Amid the floor vote chaos, Representative Max Miller (R-Ohio) unveiled a comprehensive cryptocurrency tax framework during a Wednesday hearing. His proposal addresses multiple pain points in current IRS treatment of digital assets.
The legislation would establish tax exemptions for small crypto transactions (de minimis rule), clarify reporting requirements for mining rewards, and define taxation protocols for staking activities. Miller emphasized the need for clear rules to prevent capital flight from US markets.
Additional provisions would modernize treatment of crypto in retirement accounts, charitable donations, and loan collateral. The bill also aims to close potential loopholes like wash sales while protecting ordinary users from undue compliance burdens.
This tax proposal represents one of few concrete policy developments during a week otherwise dominated by procedural infighting. As congressional leaders struggle to reconcile competing factions, the disconnect between political promises and legislative reality grows increasingly apparent.
