US House clears procedural hurdle on cryptocurrency legislation

By Chris Prentice

WASHINGTON (Reuters) -The Republican-controlled U.S. House of Representatives cleared a key procedural hurdle Wednesday, setting the stage for likely passage of several cryptocurrency bills a day after President Donald Trump intervened to save the initiative.

The vote allows the House lawmakers to consider the bills themselves, which have long been sought by the crypto industry and are expected to pass. It came one day after conservative Republicans helped defeat a similar procedural measure amid a dispute over how to proceed with the bills.

One measure, which would establish a federal framework for stablecoins, is set to head to Trump's desk for signature after House approval, marking a watershed victory for the crypto industry.

Stablecoins, a type of cryptocurrency designed to maintain a constant value, usually a 1:1 dollar peg, are commonly used by crypto traders to move funds between tokens. Their use has grown rapidly in recent years, and proponents say that they could be used to send payments instantly.

House Republicans suffered a setback in their bid to advance the bills Tuesday, when several conservative Republicans joined with Democrats to block an earlier procedural vote. But Trump met with the hold-outs and set the stage for another vote on Wednesday.

(Reporting by Pete Schroeder; Editing by Cynthia Osterman)

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