Twelve of the 13 “no” GOP votes were Reps. Andy Biggs (R-AZ), Tim Burchett (R-TN), Michael Cloud (R-TX), Andrew Clyde (R-GA), Eli Crane (R-AZ), Marjorie Taylor Greene (R-GA), Andy Harris (R-MD), Anna Paulina Luna (R-FL), Scott Perry (R-PA), Chip Roy (R-TX), Keith Self (R-TX), and Victoria Spartz (R-IN). Majority Leader Steve Scalise (R-LA) also voted against the rule, but only as a procedural move to allow it to be brought back up.

The holdouts’ decision to vote against the rule seems to have stemmed, in part, from the GENIUS Act, legislation that establishes a regulatory framework for payment stablecoins, long a priority for crypto advocates on Capitol Hill.

Greene told reporters she voted against the rule because the GENIUS Act “does not reflect the president’s executive order on January 23 that specifically says there should be a ban on Central Bank digital currency.”

“Speaker Johnson did not allow us amendments, which is our right, and that’s a House issue,” Greene said. “This isn’t a lack of support for the president.”

The rule’s failure throws a schism in the plans of House leaders, who are planning to bring the vote back up later on Tuesday afternoon.

Stablecoins, while a form of cryptocurrency, differ from traditional crypto assets, such as bitcoin and ether. Stablecoins, which now make up a multibillion-dollar market, tie their value to an underlying asset, such as gold or fiat currency. The backing of assets is meant to ensure they do not wildly fluctuate in value.

To maintain a stable value against the underlying asset, stablecoins are meant to be backed by reserves. So, if a stablecoin were to be tied one-to-one with the dollar, the entity behind that stablecoin should have $10 million in cash reserves in a bank as backing for 10 million stablecoins.

Luna expressed similar concerns about a “backdoor” for CBDCs.

“I support crypto but cannot get behind anything that allows for a backdoor to CBDC,” she said on social media. “There was a vote to allow legislation to come to the floor that would enable that to happen. Thus, I voted no.”

Still, the CBDC Anti-Surveillance State Act, which was part of the rule package, would explicitly ban CBDCs. However, the legislation will likely engender less bipartisan support than the GENIUS Act, Jennifer Schulp, director of financial regulation studies at the Cato Institute, told the Washington Examiner. There are fears from those members that the anti-CBDC bill would not pass the Senate, so they want the GENIUS Act to contain language blocking a CBDC.

DEMOCRATS SEE OPENING WITH EPSTEIN FILES TO DRIVE WEDGE BETWEEN TRUMP AND MAGA

​​A CBDC is a form of digital currency issued by a central bank. In the case of the U.S., that would be the Federal Reserve. If there were a CBDC, consumers would be able to use digital money issued directly by the Fed in addition to physical money, such as cash. Proponents of a CBDC argue that a centralized dollar would help prevent bank bailouts and increase efficiency.

However, opponents contend that it could give the Fed too much power or raise Fourth Amendment concerns depending on how much control the government would have over individual accounts.